17 October 2017 – Cinco Días
Renta Corporación has just completed its second operation for its Socimi Rembrandt Activos Residenciales. Moreover, the deal is the entity’s largest transaction to date. Specifically, it has invested €50 million in rental homes.
The Socimi, which is managed by Renta Corporación and controlled in terms of its share capital by the Dutch pension fund APG, has completed the acquisition of a residential complex comprising three buildings, spanning a total surface area of 20,114 m2, in Aravaca (Madrid).
The vehicle, which is managed by Renta Corporación, has purchased 156 homes with an average surface area of 102 m2 each, along with 168 parking spaces. This real estate asset currently has an occupancy rate of 51.3% and the Socimi plans to make the asset fully operational over the next few months.
This is the second operation undertaken by the Socimi, which was created at the end of April. In June, it acquired two residential complexes on the outskirts of Madrid, in the municipalities of Navalcarnero and Rivas Vaciamadrid, for just over €25 million. Both properties have a combined surface area of 20,891 m2 and contain 335 rental homes.
Renta Corporación entered the Socimi segment this year (…) as the manager and minority shareholder of Rembrandt. The Socimis’ residential sector is less developed in Spain than those of offices, hotels and shopping centres, where Merlin, Hispania, Lar España, Colonial and Axiare rule the roost.
In the rental home sector, the key players are Testa Residencial, the Socimis established by the fund Blackstone, and several smaller entities such as Alquiler Seguro, VBare and Vitruvio. Rembrandt, which is under the obligation to make its debut on the stock market within two years, is a new line of business that is allowing the listed real estate company Renta Corporación to expand its market.
Whilst the management company brings its knowledge of the Spanish market to the table, APG contributes its enormous financial muscle. The experts forecast that this rental homes segment will continue to grow in Spain, where there is increasingly more demand from tenants.
Original story: Cinco Días (by A. Simón)
Translation: Carmel Drake