Global asset manager AEW has agreed the forward purchase of a mixed-use residential-retail property in Barcelona from EuroStone, a local housing investment company, marking its debut Spanish residential deal.
The acquisition of 59 Via Augusta, in the Sarrià-Sant Gervasi district, was made on behalf of a private German pension fund mandate. Financial deals were not disclosed.
'This will be a high quality residential building in the heart of Barcelona and marks AEW’s first residential transaction in Spain, reflecting our growing platform and increasing ambitions in this country,' said Carsten Czarnetzki, country head Spain at AEW.
'Since opening our office in Madrid in 2017, we have successfully invested clients’ funds across most real estate asset classes in Spain and are seeing continued strong investor demand for the market,' Czarnetzki added.
Totaling circa 11,500 m2, the property has been converted to residential use and is undergoing a two-year refurbishment, which is being delivered by EuroStone. Upon completion, it will comprise 91 residential units and up to three retail units over nine floors, with around 120 car parking spaces and 26 motorcycle parking spaces.
As a group, AEW has been investing in residential real estate for over 20 years and currently manages a dedicated residential fund, Residys. Overall, the asset class represents approximately 8% of AEW’s circa €32 bn European portfolio, the firm said.
Lars-Henning Pylla, separate account manager at AEW, added: 'Barcelona's residential market, and this redevelopment opportunity in particular, meets our objective of investing in centrally located and sought after apartments, underpinned by positive, long term fundamentals. Once the project is complete, we expect it to deliver both long-term capital appreciation and stable cash-flow.'
AEW was advised by BNP Paribas Real Estate as commercial advisor and Cuatrecasas as legal advisor. The vendor was advised by TC Gabinete Inmobiliario and Pedrosa Lagos.