29 December 2016 – Expansión
Invesco joins forces with the Barba Group / The partners are going to invest more than €26 million in 30 high-end apartments. The construction work will begin in 2017.
A plot of land measuring more than 700 m2, next to Paseo de la Habana and Calle Serrano in Madrid, is one of the latest additions to Invesco’s real estate portfolio in Spain. The German fund manager has invested more than €25 million to buy this plot of land, located in Plaza Valparaíso, where it will create 30 luxury homes. “We have been negotiating the purchase of this plot of land for a year now. It was owned by a family and a religious congregation. In the end, we have completed the acquisition and we have requested a licence to begin construction”, say sources at the fund.
The German fund has been one of the most active investors in Spain in 2016, and after acquiring several important retail assets such as Prada’s flagship store on Paseo de Gracia and a batch of eleven Eroski hypermarkets, it has placed its focus on the residencial segment. “Spain is one of the largest markets for Invesco. We have purchased profitable assets for several funds there, such as on Paseo de Gracia and the hypermarkets. But, in addition, we have entered the world of property development, like we have in other countries such as the USA and certain Asian markets, with funds that seek added value opportunities; Spain is one of the first countries where we have begun”, explained Tim Nalder, Head of Invesco Real Estate in Spain.
To this end, the German firm has teamed up with the real estate company Barba Group and, through a joint venture, has started to develop high-end homes in the most exclusive areas of Madrid. “Last year, Invesco told us about its plans to invest across Europe with an added value fund that offers high returns and we have already invested more than €100 million through the joint venture”, said César Barba, CEO of the Barba Group.
The latest major project is this plot of land on Paseo de la Habana, where 30 homes will be constructed and then sold for around €6,500/m2. There will be several ground floor and penthouse duplexes, with swimming pools and terraces. The most expensive home will be sold for €1.5 million. But the jewel in Invesco and Barba’s project will be a sky terrace, located on the top floor of the block, which will have a gym and swimming pool, amongst other services. The construction work at this exclusive development, which has already started to be marketed, will begin between April and May next year.
Currently, Invesco’s most advanced project in the capital is a development containing nine 3- and 4-bedroom homes, with terraces and solariums, located in the Arturo Soria neighbourhood, which will be ready for its first residents in the spring. Moreover, this joint venture recently bought the building at number 53 on Calle Serrano in Madrid, where it will create high-end homes on the upper floors and a retail store for a luxury brand on the ground floor.
In total, Invesco is working on four developments in the capital and another housing complex in Valencia. Invesco has invested more than €500 million in the Spanish market during 2016 between its residential and retail asset purchases. “Currently, Invesco has €200 million to invest across Europe and Spain is going to be one of our primary markets”, said Nalder.
Original story: Expansión (by Rocío Ruiz)
Translation: Carmel Drake