Pan-European investment manager Primevest Capital Partners has signed its second acquisition in the Spanish residential market. On behalf of a German pension fund, Primevest has a 6,500 m² residential plot with 90 units near the marina of Valencia for approx. 18 million euros. The seller is Hierros y Corrugados Ribarroja, SA, a subsidiary of the construction group Grupo Bertolín SA. The project is scheduled for delivery in the fourth quarter of 2024.
The project is located on the corner of Calle Vicente Brull and Calle Museros in Valencia. It will consist of two buildings with 90 residential units and an underground car park with 58 parking spaces. Both buildings will have several chill-out areas, a swimming pool and a children’s playground on the roof terrace, as well as storage rooms and a bicycle shelter in the basement. In addition, each building offers space for a gym and co-working. The property will be build-to-rent and will be completed by the end of 2024. Construction is scheduled to start in Q3 2022.
The project is located east of Valencia city centre, 300 meters from the marina and 800 meters from the beach in the Poblats Maritims district. Besides being an attractive tourist spot, this district has become a center of technological innovation due to the presence of many start-ups. Two tram lines and several bus lines ensure a direct connection to the city center. In addition, many facilities for daily needs can be found in the immediate vicinity. These include several supermarkets, schools, various museums and leisure centers.
Valencia is located in eastern Spain and is the third largest city in the country after Madrid and Barcelona. The metropolitan area comprises around 1.5 million people, of whom around 800,000 live in the city of Valencia itself. The city of Valencia is home to the University of Valencia and the Polytechnic University of Valencia, two of the top 10 universities in Spain with over 76,000 students.
The residential buildings will meet modern energy efficiency standards (energy class A and BREEAM Very Good) and will use renewable energy sources such as a photovoltaic system (solar panels) for electricity generation and a central aerothermal system for household heating water, state-of-the-art LED lighting in all common areas and a disposal area as a clean point for the recycling of rubbish, plastic, glass and paper.
“We are very pleased that we have been able to acquire a second residential property in Spain in partnership with Colliers. This project in Valencia offers a very stable investment opportunity due to the combination of modern, high-quality apartments in a fantastic location and a good ESG rating. It mainly consists of 1 bedroom apartments to meet the demand for affordable, sustainable and modern rental housing with all kinds of amenities and common areas. We look forward to further expanding our portfolio of sustainable and affordable homes in the residential real estate market in Spain,” commented Olaf Steinbusch, Senior Acquisitions Manager at Primevest Capital Partners.
Earlier this year, Primevest announced its first residential property acquisition in Seville for €21m, marking its entry into the Spanish residential property market [we reported]. Primevest has identified Spain as a market for expanding its residential portfolio and will build a sustainable residential portfolio across Spain in selected cities such as Alicante, Palma de Mallorca, Bilbao, Cádiz, A Coruña, Granada, Madrid, Malaga, Murcía, Salamanca, Santander, Valencia , Vigo and Zaragoza.
Primevest started investing in residential real estate in 2007 and has a residential portfolio of approximately EUR 1 billion across Europe, with a focus on Austria, Denmark, Germany, Spain and the Netherlands. Primevest is looking for investments worth between 15 and 60 million euros, mainly for residential investment segregated accounts for private customers, mainly pension funds.
Colliers acted as financial and real estate advisors on the transaction, Drees & Sommer as technical advisors and CMS Albiñana & Suárez de Lezo as legal advisors.