20 December 2017 – Eje Prime
AXA is redoubling its commitment to Spanish real estate. Two weeks after formalising the purchase of the largest portfolio of student halls in Spain, through a joint venture with CBRE, for which it paid Resa €0.5 billion, the investment arm of the insurance company has acquired 850 prime residential assets from Goldman Sachs and B Capital. This operation has been signed for €170 million.
Most of the homes purchased by AXA are located in the central areas of Madrid and Barcelona. Moreover, fourteen of the properties have been built since 2005 and the remainder have all been renovated within the last fifteen years. As such, the portfolio comprises luxury homes, which the company will revalue over the next few years by putting them up for rent.
Hermann Montenegro, Director of Investments at AXA Real Assets, also said that “the purchase of this portfolio of high-quality residential assets reflects our confidence in the residential markets in Madrid and Barcelona, where the growth in rentals has increased and the outlook for the next few years in terms of demand is very favourable.
This investment forms part of a long-term plan by AXA Real Assets to invest in sustainable and growth markets. In this context, in the last year, it has undertaken investments in Finland, Germany and the USA, amongst others.
Original story: Eje Prime
Translation: Carmel Drake