Greystar acquires a build to rent asset in Madrid with 455 apartments
• Greystar increases its portfolio of assets under management in Spain to €1,200 million with this transaction.
• The asset is earmarked for Greystar’s value-add strategy.
• This is the first secured deal in Spain for the strategy unveiled in June 2021, with capital commitments of €725 million.
• This agreement reinforces ACCIONA's position as one of the leading developers in the build to rent segment.
Madrid, 14 September 2021 – Greystar, a global leader in the investment, development, and management of high-quality rental housing properties, announces the acquisition of a build to rent residential asset in Madrid’s city centre, in the Arganzuela district.
ACCIONA, owner of the c.24,795 buildable sqm plot and in charge of its development, plans to start construction in the second half of 2022. The 13-storey building has been designed by the L35 architecture studio and will comprise 455 one and two-bedroom apartments.
In addition to a privileged location in Madrid’s city center, just a 15-minute walk from the Atocha Station or the Reina Sofía and Prado Museums and very close to the M-30, the asset will have a wide range of amenities and shared areas, including a large lobby/lounge, gym, co-working spaces, a theatre, leisure and dining areas for residents, a community terrace, a children’s play area, a swimming pool and 455 storage rooms and parking spaces.
Upon completion, it is intended that the asset will form part of the growing portfolio for Greystar’s new pan-European value-add strategy, which was announced in June 2021 with capital commitments of €725 million at first close. The strategy’s portfolio has already closed deals in Ireland, the United Kingdom and the Netherlands, and will continue to grow across Greystar’s seven European markets.
Juan Manuel Acosta, Managing Director – Spain, Greystar, said: “In our view the Madrid rental market is recovering rapidly after the pandemic and there is hardly any residential sites for new construction, which lays the groundwork for excellent fundamentals for this asset. This transaction not only reflects our growing interest in the burgeoning build to rent sector but extends our commitment to the Spanish market.”
Andrés Pan de Soraluce, CEO of ACCIONA Real Estate Division, said: “This agreement is an important step in ACCIONA’s strategic plan to generate value in real estate segments through differentiation and institutional alliances, in iconic and high potential locations. Following our standard across all Real Estate projects, we will develop the apartments to the highest levels of environmental sustainability, targeting the BREEAM label certification.”
Greystar has other build to rent projects in the Madrid greater area, and currently has a total of 2,500 rental units in Spain. On a global scale, Greystar has investment vehicles with approximately $45.1 billion in assets under management.
Jones Day, PwC and Knight Frank advised Greystar in this transaction.
Greystar is a leading, fully integrated real estate company offering expertise in investment management, development, and management of rental housing properties globally. Headquartered in Charleston, South Carolina, Greystar manages and operates an estimated $220 billion of real estate in more than 210 markets globally including offices throughout the United States, United Kingdom, Europe, South America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, manages more than 748,000 units/beds, and has a robust institutional investment management platform with approximately $45.1 billion of assets under management, including over $21.3 billion of assets under development. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world-class service in the rental residential real estate business. To learn more, visit www.greystar.com
About ACCIONA Real Estate Division
With more than 25 years' experience, ACCIONA's real estate division has developed 10,000 properties –mainly residences– in Spain, Portugal, Poland, Mexico and Brazil. It is part of ACCIONA, a global company and a leader in the provision of regenerative solutions for a decarbonized economy. Its business offer includes renewable energy, water treatment and management, eco-efficient transportation and mobility systems, resilient infrastructures, etc. The company has been carbon neutral since 2016. ACCIONA recorded sales of €6,472 million in 2020 and has a business presence in more than 60 countries. To learn more, visit www.acciona.com
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