AEW has agreed to forward purchase two build-to-rent residential developments, in Palma, Mallorca, from Spanish developer Metrovacesa. The acquisitions are being made on behalf of a separate account mandate backed by a German pension fund.
The schemes, Sol de Llevant and Terrasses de Llevant, will provide 203 residential units and 23,200 sq m in all, are aimed at the mid market. They will have a mix of one to four-bedroom apartments. The projects, which should be completed by 2023, are situated in the Nou Llevant district, an urban regeneration project which will create a total of 400,000 sq m of new office, retail, leisure and residential space.
AEW country head Spain Carsten Czarnetzki said: “We remain positive towards investment in the residential asset class in Spain, which continues to attract interest from institutions due to its counter cyclical and secure characteristics, whilst also delivering much needed housing in an underdeveloped market.”
AEW manages over 6,000 units of residential space, including rental and senior living accommodation, across Europe for individual mandates as well as on behalf of its fund, Residys, which has invested in €387 million of residential real estate assets in France, with a focus on the Paris region.
As at 30 June 2020, AEW managed €33.6bn of real estate assets in Europe on behalf of a number of funds and separate accounts.