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Azora targets Spain’s BTR potential with €1bn platform

Concha Osácar

Spanish private equity manager Azora is launching BRISA, a vehicle focused on developing build-to-rent property in Spain.
The new vehicle is being established in conjunction with a global institutional investor and including leverage, will have total investment capacity of over €1 billion and wants to develop more than 8,000 units in the next five years.
BRISA’s strategy will be the same as Azora’s: a preference for turnkey projects in long-term strategic collaborations with national and local developers, complemented by land acquisitions for its own development.
Azora said the capital will be deployed across a number of strategic micro-locations in Spain identified as “having fundamentals that support purpose-build PRS outperformance”.
Potential locations include Madrid, Barcelona, Seville, Malaga, Palma de Mallorca and Valencia.
The portfolio will be property managed and leased by Azzam, Azora’s wholly owned residential leasing and property management subsidiary.
Concha Osácar, Founding Partner of Azora, commented: “There is still an acute shortage of good quality rental housing in Spain, most notably for affordable accommodation targeting middle income earners.
“BRISA aims to help alleviate that issue through the delivery of more than 8,000 sustainably developed new homes in the most supply constrained micro-locations across Spain over the coming years.
“The success of this capital raise demonstrates that international investors continue to recognise Azora as a market leader in Spain in general and in the residential sector in particular.”
The current deficit of homes for rent in Spain is estimated at c.2.5 million over the next 15 years. Additionally, Azora said the market is currently characterised by fragmented ownership and a low share of professional institutional players.