Almagro Capital grows senior living fund via sale & leasebacks.

Since inception, Almagro Capital has added 32 residential assets to its portfolio. The Spanish REIT launched by Orfila focuses on individual flats or apartments in urban areas of Madrid and the majority of its acquisitions have been arranged via sale & leaseback agreements.

The fund’s latest sale & leaseback agreements during Q4 of 2019 include a 133m² flat on Calle Andres Mellado and a 245m² flat on Cea Bermudez worth a combined €1,230,000. In both cases, the previous owners agreed a lease agreement to remain in the properties. During the same period the Spanish REIT also purchased the bare ownership of a 100m² flat priced at €320,000 and a 308m² flat on Paseo del General Martinez Campos which already had a lease agreement in place.

The investment vehicle usually uses its own equity to complete its purchases and finances each property in a later stage. In fact, during Q2 of 2019, the debt level incresed to €4.9 million implying a loan to value rate (LTV) of 23% at an average fixed interest rate of 1.58% per annum.

Early in 2019, Almagro Capital successfully completed a capital increase backed by Spanish insurance firm Preventiva Compañía de Seguros y Reaseguros S.A., the Family Office of the Alicante-based Alcaraz family and the A&G Global Sicav Inland Fund, amongst others.

The fund manager has subscribed to the UN Principles for Responsible Investment (PRI), a set of six principles that provide a global standard for responsible investing which relate to environmental, social and corporate governance (ESG) factors.