Almagro Capital SOCIMI, the Spanish REIT launched by Orfila, focuses on individual flats or apartments let to senior citizens in urban areas of Madrid mainly via sale & leaseback agreements.
The REIT’s latest acquisition has been that of eight flats in Madrid for €1.88 million from SAREB, Spain’s bad bank. According to the buyer, these are leased under rent-controlled contracts («renta antigua»).
Since inception, Almagro Capital has added 50 residential assets to its portfolio including this latest deal which is the first the fund has closed with an institutional seller.
The flats have been purchased with a commitment to respect the rent-controlled leases for all tenants. This reflects the listed property fund’s policy of «maximum care for tenants, especially those in situations of vulnerability, aware that they are the best guarantors of the service they offer.»
According to the REIT’s CEO, Luis de Ulíbarri, «SAREB has been very careful to ensure the safety of its tenants, who were in a situation of vulnerability, and the fact that they have trusted Almagro Capital is proof that we are doing things right and that we are a kind and safe option for these types of situations».
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.