H.I.G. Realty, an affiliate of H.I.G. Capital, has acquired a real estate portfolio in central Madrid, Spain, comprised of three buildings totalling 20,000 sqm.
The buildings will undergo an extensive renovation and transformed into a high-standard residential asset with strong environmental credentials, benefitting from consistent growth of demand for housing accommodation in Madrid.
Located in the consolidated residential area of Arturo Soria, the portfolio is currently comprised of three commercial properties, two office buildings and one hotel. All three buildings have received the approval to be converted into a residential scheme consisting of 267 units for rent and sale. The asset will have a comprehensive suite of amenities including swimming pools, gym, food courts, cinema, terraces, and roof top with dining areas.
Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe commented: “We believe that the current residential market in Madrid benefits from strong fundamentals due to a lack of quality accommodation and high demand. This transaction demonstrates our ability to access sizeable assets in undersupplied markets with the potential of becoming a highly liquid, institutional product as the result of implementing our value-add initiatives.”
Esteban Caja Samboal, Managing Director at H.I.G. Realty in Europe, added: “We plan to deliver a high-quality scheme which caters to the demand from young professionals and families for new housing with luxury amenities, within an exceptionally located Madrid district. Given the strong market dynamics, we continue looking for opportunities in this sector, including converting obsolete office assets into state of the art residential properties.”
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