AXA buys turnkey residential project from Acciona.

AXA Investment Managers – Real Assets, has completed the forward purchase of a a 135-unit residential development in central Madrid which is being carried out by Acciona Inmobiliaria.

The project is located in the district of Arganzuela and forms part of the up and coming Mendez Alvaro area, where various high quality offices are under construction. The sought-after inner city location is a short walk from both the popular Retiro park and the Atocha station, the city’s main transportation hub, while Madrid-Barajas Airport is 17 minutes away by car.

Due to complete in December 2020, the scheme will comprise flats for the rental market, including several flats that will be specifically built and furnished to cater for disabled people. Spread over ten floors, amenities will include a swimming pool, gym and terrace area, whilst every resident will have underground parking and a storage room. The apartments will be developed to the highest standards of environmental sustainability in construction and the development will target a BREEAM label certification.

The central Madrid residential market is characterised by a shortage of high-quality new build residential stock for rent, whilst the increasing demand makes renting an appealing proposition. The acquisition forms part of AXA IM – Real Assets’ wider strategy on behalf of clients to invest into residential asset classes which it believes are supported by strong demographic drivers and adds to its c. €10bn portfolio of residential assets under management spread across 10 countries. The purchase price was not disclosed.