Allianz Real Estate has bought its first private Rented Sector (PRS) portfolio in Spain for around EUR 251 million.
Allianz, on behalf of several Allianz Group companies, has acquired a majority stake in Spanish residential real estate platform Elix Vintage Residencial Socimi Elix Vintage from KKR, Altamar Capital Partners and other investors.
Allianz acquired the stake via a takeover bid.
IPE Real Assets assumes that the share price published in the takeover offer is 140 million euros. Including debt, outstanding investments and other costs, the total value of the stake is expected to be around 251 million euros, according to a source.
The Elix Vintage platform was launched in 2017 to invest in the residential markets of Madrid and Barcelona through an aggregation strategy. The current portfolio consists of 21 developments, including 421 units, with 13 properties in Madrid and 8 properties in Barcelona.
Miguel Torres, Head of Iberia, Allianz Real Estate, said the acquired assets underscore the importance of sustainability as a competitive differentiator and a means to attract tenants.
“Madrid and Barcelona show strong fundamentals and we see an opportunity to offer professionally renovated, maintained and managed residential units, creating value for our tenants and investors.”
Donato Saponara, Head of Transactions West Europe at Allianz Real Estate, said this transaction is the first time Allianz Real Estate has structured a PRS acquisition in Spain.
“The structure offers investors attractive benefits that increase the opportunity to increase our exposure, and its application underscores the strength and technical prowess of the Allianz Real Estate team.”
Alexander Gebauer, CEO of Western Europe at Allianz Real Estate, said the European PRS sector has grown in importance, offering investors diversification across asset classes and regions.
“As evidenced by a number of recently completed transactions, Allianz Real Estate is focused on further growing its PRS book by acquiring and developing world-class assets and working with world-class partners.”
Guillaume Cassou, Partner, Head of Real Estate Europe at KKR, said: “Our investment thesis has been realized and we welcome Allianz as the new owner of the portfolio. The residential sector remains a priority for us and builds on our track record of working with experienced local managers and developers.”
KKR’s investment in Elix Vintage was made through its Real Estate Partners Europe I fund.
Fernando Olaso, Managing Partner at Altamar Capital Partners, said: “We have used a very practical value creation strategy in building this great portfolio. By incorporating ESG principles into the refurbishment and significantly improving energy efficiency across the portfolio, we have consistently created significant value.”
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