Aberdeen pays €90M to Azora for its first build to rent project in Spain

Madrid is set to get more rental flats it emerged last weekend, with Aberdeen Standard Investments agreeing to fund a new development in the neighbourhood which once housed Atletico de Madrid’s Vicente Calderón football stadium and the factories of Spanish beer brand, Mahou.

Their Aberdeen Standard Pan-European Residential Property Fund said it has reached an agreement with Azora to develop a turnkey 160 apartment build-to-rent project with an investment of over €90 million.

Property investors have been increasingly ploughing money into Spain’s build-to-rent sector with a special interest in Madrid where residential price growth has made it tougher to get on the housing ladder thus moving renters to lease homes for longer periods of time.

The latest project in the Mahou-Calderón neighbourhood will be designed by architect studio Touza and residents are expected to move in towards the end of 2022.

Azora will develop the plot known as as RC8 for Aberdeen Standard constructing a residential building of more than 14,000sqm which will include 160 apartments with one to three bedrooms, as well as a retail area of ​​around 1900sqm. The residential project will also have more than 2,000sqm of outdoor common areas with large green areas, a swimming pool, paddle tennis courts, a children’s play area, etc.

In Azora’s other plot (RC7-River Park), a residential building is being planned for sale, and it has already sold about 30% of the available units. Its marketing, in which Gestilar is also participating, began at the end of the year with prices starting at €285,000.

Property agent TC Gabinete Inmobiliario worked with Aberdeen along with Garrigues whilst Perez Llorca acted as Azora’s legal advisor.