CBRE Investment Management Acquires an Affordable Residential Asset in Madrid
December 19, 2022
CBRE Investment Management (“CBRE IM”), on behalf of a fund it sponsors, has acquired a new affordable residential asset in Madrid, Spain.
The asset is located in San Sebastián de los Reyes and has a total gross lettable area of 12,174 sq m. Completed in 2009, it comprises two adjacent buildings with 82 homes, 123 parking spaces and 82 storage units and is fully leased.
The asset is close to Madrid’s city centre and benefits from great connectivity to main highways and public transport systems, as well as in close proximity to a range of services such as restaurants and supermarkets, schools and hospitals. The area includes residential units to appeal to a full affordability spectrum.
This acquisition was closed in partnership with Elix and is in line with the recently signed agreement between CBRE IM and Elix to develop a portfolio of approximately 1,200 affordable and sustainable homes, to facilitate access to affordable housing for middle-income households.
Antonio Roncero, Head of Transactions for Iberia at CBRE Investment Management, said: “Around a quarter of households in Spain currently live in rented housing, and that number is expected to increase gradually and reach wider European levels in less than fifteen years1. Demand has also typically outstripped supply for a long time, with transaction volumes and capital values increasing steadily since the global financial crisis of 2008. There is specifically high demand for affordable and sustainable homes. This asset presented us with a rare opportunity to acquire an affordable asset, that we can upgrade to modern sustainability standards -– allowing us to capitalise on what we believe to be strong market factors.”
CBRE Investment Management is a leading investor-operator in residential with €15.4 billion* residential assets under management and owns over 200 assets for the direct real estate division. The platform has a broad footprint across all major European residential markets and invests across a number of different investment strategies and programs including three residential specialised funds; All three strategies have an emphasis on making a positive social impact with two of the strategies specifically created to deliver good quality, sustainable and affordable rental homes.
1 Evolution of rental vs ownership in Spain – INE and JLL June 2022
Tenure status in Spain vs Europe – Eurostat
Number of housing transactions in Spain – Infrastructure Ministry and JLL
Housing price evolution in Spain – Infrastructure Ministry and JLL
* The figures combine both direct and indirect investments and are intended to illustrate the asset management presence of CBRE Investment Management in the European residential sector, as of 31 September 2022.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $146.9 billion in assets under management* as of June 30, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com. *Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.