Industry leader in customized indirect real estate investment solutions, CBRE Global Investment Partners and Madison International Realty have agreed to invest $1 billion in Spanish property.
The portfolio will consist of 6,458 Spanish residential properties, valued at €870 million.
The investment forms part of the recapitalisation of a fund managed by Spanish asset manager Azora, who will continue to have a majority stake in the venture and manage the assets. CBRE GIP and Madison have agreed to take on the portfolio to help grow the venture further.
The portfolio consists of 65 primarily mid-market apartment block buildings of which around 70 percent are located in and around Madrid, with the balance in other key cities, they said.
In a statement, Head of Continental Europe at CBRE Global Investment Partners, Alexander van Riel, said: "The residential rental market in Spain is very fragmented, making this portfolio and its critical size unique to act as a major consolidator in the sector. […] This investment is in line with our key strategy - to focus on urbanisation and demographic trends in supply constrained markets - and increases the CBRE GIP residential sector exposure in Europe.