AXA IM Buys 919 Rental Homes in Madrid from Tectum for €150 Million

Axa’s real estate manager has starred in the largest turnkey operation involving rental homes in Spain to date.

The manager AXA IM-Real Assets, the real estate arm of the insurance company Axa, has given a clue as to where the Spanish real estate market may go in the short and medium term: it has purchased a portfolio of 919 social housing properties, located in the Community of Madrid, and intended for rent (known as build to rent) from Tectum for €150 million.

The vendor, Tectum Real Estate, is a company specialising in the development of properties for rent, together with its developer partner, Locare Real Estate, which has been advised by the boutique consultant TC Gabinete Inmobiliario. The consulting firm Colliers has advised Axa on the technical and environmental due diligences, and will be in charge of the Project Monitoring for the construction work.

Locare & Tectum to Launch New Fund as Rental Market Heats Up

14 October 2019 Locare RE and Tectum Real Estate Investments are preparing to launch a new €240-million fund aimed at the affordable rental housing market. The new fund, Tectum II, comes hot on the heels of a similar, €120-million fund the two firms launched just a few months ago. The investments come at a time when foreign investment and rising real estate prices, especially in Spain’s major cities, are driving families further out of city centres.

The first fund allowed the two firms to acquire seven plots of land, enough to build 1,000 affordably priced rental homes in the Community of Madrid. The plots of land are located in Torrelodones, Villalba, Móstoles, Arroyomolinos, Valdemoro (two plots) and Alcalá de Henares. The fund expects monthly rents to cost between 500 and 900 euros per month.

Short-term plans for Tectum II aim to start advertising approximately 1,500 new rental homes already in 2020.

Original Story: El Confidencial – E. Sanz / C. Hernanz

Photo: Locare

Adaptation/Translation: Richard D. K. Turner

Avintia & Gesurbe Boost Locare: €55M & 3 New Projects in Madrid

13 December 2018 – Eje Prime

Locare is searching for its place in the Spanish rental market. The real estate investment manager, in which Grupo Avintia and Gesurbe hold stakes, has launched the development of its first 405 homes in different locations across the Community of Madrid. The combined investment for the projects will exceed €55 million, according to comments made by Andrés Horcajada, founder and CEO of Locare, speaking to Eje Prime.

Specifically, the company is building 171 homes in Torrelodones (which will be finished during the second quarter of 2019), 110 in Villalba and 124 in Móstoles. The last two developments will enter into operation during 2020, following an average construction period of between 12 and 18 months. Together, the plots span a constructed surface area of 37,000 m2.

“We want to end 2019 with 1,100 homes under development, not only in the Community of Madrid, but also in other parts of the country”, explained the executive. Pamplona, Ibiza and Zaragoza are the cities that Locare currently has it its sights for its next projects, with the aim of investing €65 million.

The company, created in 2016, undertakes all of the phases of the real estate cycle, from raising capital to operating assets. Locare also takes care of searching for plots for social housing units, a requirement shared by all of the plots that the manager acquires.

“We do not buy properties that are already constructed, given that for us build to rent is fundamental”, explained Horcajada. The director added that this business model allows “investors to take advantage of the first phases of the real estate cycle and for the resulting product to be designed specifically for the rental market”.

Tectum is Locare’s ally 

Locare has teamed up with the capital manager Tectum Real Estate to attract investors to finance its projects. “Tectum allows us to group together Spanish family offices primarily and it is the company through which we relate directly with them and we deal with their demands”, explained the CEO of the company.

Besides Tectum, the company led by Horcajada also collaborates with the construction firm Avintia as an industrial partner, although the director explains that they do not have an exclusive contract with them when it comes to carrying out construction projects.

On the other hand, Locare has launched new technology into the world with another strategic collaborator, the proptech Mitula. “Through this platform, we are undertaking data analysis, both of the demand as well as of the supply of each one of the locations in which we are launching”, explained the executive.

In terms of the company’s long-term plans, Horcajada confirmed that the debut on the stock market “is not a plan that features amongst the desires of investors”. Similarly, the director explains that Locare will focus especially on the Spanish residential rental market, for which it predicts a promising future. “Housing is going to be increasingly configured for use (rental) and not for ownership, like in other European companies”, concludes the executive.

Locare is a real estate investment manager dedicated to residential rental. Although both Grupo Avintia and Gesurbe have been linked to this market niche for more than eight years, Locare was created as an independent platform in 2016.

Original story: Eje Prime (by Berta Seijo)

Translation: Carmel Drake

Locare RE & Tectum Join Forces to Promote 1,000 Rental Homes

23 October 2018 – El Confidencial

The real estate manager Locare RE and the company Tectum Real Estate Investments are going to promote more than 1,000 long-term rental homes in the Community of Madrid and the main provincial capitals, which will require an investment of more than €120 million over the next two years.

Currently, they have three developments underway in the Madrilenian towns of Móstoles, Collado-Villalba and Torrelodones, which comprise 405 homes in total and whose entry into operation is scheduled between 2019 and 2020, as indicated in a statement.

In this sense, both have underlined that, given the scarcity of residential land, they are exploring and developing opportunities for differentiation in the sector by promoting contractual schemes involving public-private collaboration.

The aim is for these alliances to reinforce their vocation of long-term permanence, on the one hand, and to provide appropriate instruments to collaborate with the Public Administrations, especially with the Town Halls, on the other hand, in order to increase the stock of rental housing without those bodies having to commit to public investment.

This initiative is being launched in a favourable market context given the growing demand for rental housing and the shortcomings of the current residential rental stock in Spain’s main cities (…).

Original story: El Confidencial 

Translation: Carmel Drake