The Socimi Optimum III Value-Added Residential has sold a residential building in Madrid, Calle Edgar Neville 7, for €20.2M.
The vendor was advised exclusively by CBRE.
The Spanish REIT vehicle is owned by BlueMountain Luxembourg Holdings 1, S.à.r.l., with an 83% stake and basque pension fund, Itzarri EPSV, with a 9% stake.
Optimum III Value Added Residential is a fund specialized in the residential market listed on the MAB with an expected investment of approximately 100 million in assets in Madrid and Barcelona. The choice of properties is governed by strict criteria of high profitability and low risk in prime areas of Barcelona and Madrid.
This transaction provides further evidence of the resilience of the residential asset class and the continued strong demand in this market segment. Recent research from CBRE shows total investment in the multifamily sector from Q1-Q3 for 2020 stood at €1.8B in comparison to €2.1B from Q1-Q4 in 2019. Given the economic uncertainty and time lost this year due to COVID 19, this year’s investment volume can only be described as very encouraging.
Analysing the investment volumes further we see that the much discussed Build to Rent segment has grown further in comparison to last year and so far this year it has eclipsed investment in PRS. Build to Rent is providing an excellent solution to the strong demand for residential assets and current lack of stock, the majority of which is outdated and was not designed for rental purposes.