Allianz enters Spanish residential market with €250M off-market REIT acquisition

KKR & Co. Inc., Altamar Capital Partners and other investors have announced the sale of their stake in the Spanish residential real estate platform Elix Vintage Residencial Socimi S.A. to Allianz marking the insurer’s first foray in this Western European country.

Elix will continue to manage the portfolio under the new ownership. The Elix Vintage Residencial Socimi S.A. was launched in 2017 to invest in the Madrid and Barcelona residential real estate markets through an aggregation strategy. The current portfolio comprises 21 residential assets including 421 units, with 13 properties in Madrid and 8 properties in Barcelona various of which are currently under construction. Some of the buildings are listed and the portfolio has been maintained to the highest standards including 2 co-living properties managed by Urban Campus and 4 buildings are focused on short term touristic stays. Approximately 10% of the portfolio is comprised of retail high street assets. As is typical with older buildings in Madrid and Barcelona some included life-long «renta antigua» tenants however the insurance firm has demonstrated a clear willingness to enter the market despite this type of hurdles.

During its tenure, the investor consortium has completed the refurbishment of over half of the units, with the remaining flats undergoing renovations. KKR’s investment in Elix Vintage Residencial Socimi S.A. was made through its Real Estate Partners Europe I Fund.

Guillaume Cassou, Partner, Head of Real Estate Europe at KKR said: “We are delighted with the successful execution of the plan we set out in 2017 to invest capital, alongside Altamar Capital Partners and Elix, in high-quality residential refurbishment projects. Our investment thesis has been realised and we welcome Allianz as a new owner of the portfolio. The residential sector continues to be a priority for us, building on our track record of working with expert local managers and developers”.

Freshfields Bruckhaus Deringer has counselled KKR & Co. Inc. and Altamar Capital Partners on the sale of Elix Vintage Residencial Socimi, whilst Allianz was advised by DLA Piper, Cushman & Wakefield and JLL amongst others.

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