AXA IM Alts acquires Madrid residential portfolio for €285m

AXA IM Alts has acquired a household portfolio in Madrid, Spain, from funds managed by Blackstone for €285 million.

The acquisition has been made on behalf of clients through AXA IM Alts’ Real Assets platform.

Constructed between 2004-2008 and comprising c. 67,000 sqm of space, the portfolio is spread across six modern residential assets, most of which have been recently refurbished, and offers a total of 740 units from studios to 5 bed apartments for the rental market. The majority of assets feature shared common facilities including swimming pools, green spaces, a gym and a playground, while the total portfolio offers more than 950 resident parking spaces.

The portfolio is spread across the metropolitan area of Madrid in the desirable and highly populated neighbourhoods of Méndez Álvaro, Sanchinarro, Alameda de Osuna, San Sebastian de los Reyes, Boadilla and Majadahonda.

In line with AXA IM Alts’ global sustainability targets, the business intends to pursue a significant capex and asset management programme to optimise the portfolio and upgrade its ESG credentials.

With an expanding population and GDP growth forecast to outperform the national average, the Madrid residential market is characterised by increasing demand for high-quality rental assets, located in the city’s most popular and well connected submarkets.

This acquisition forms part of AXA IM Alts’ wider long-term strategy to invest into residential asset classes which it believes are supported by strong demographic drivers. AXA IM Alts has a c. €25 billion global portfolio of residential assets under management spread across 15 countries.

Esther Escapa, Head of Transactions – Iberia at AXA IM Alts, commented: “This transaction presents a rare opportunity to acquire a prime residential portfolio in a highly competitive market characterised by strong demand. At the same time, it aligns well with our strategy of utilising our asset management expertise to add value, through upgrading the portfolio’s quality and sustainability credentials.”