ActivumSG (ASG) has acquired a development site in an up-and-coming commuter town near Madrid as the maiden investment for its sixth and latest fund.
The project is part of a secured pipeline of investment opportunities in select European real estate markets projected to commit €120 mln of the fund’s equity and to close by the year-end.
Saul Goldstein, ActivumSG’s founder and managing partner, said: 'We’re putting our investors’ capital to work rapidly with a strong pipeline of investments. This is the advantage of having experienced teams on the ground to source opportunities - often that are complex or have been overlooked by others - and then to manage the assets so they generate attractive returns.'
Fund VI will build 290 loft-style rental apartments on the site in San Sebastian de los Reyes, a commuter town 20 kilometers to the north of the Spanish capital. The total cost of the project, including the plot’s purchase, development finance and construction, is around €40 mln.
This build-to-rent project lifts the number of rental homes under development or to be built by ActivumSG funds to more than 1,500 units. All of the funds’ residential developments, including projects to deliver 4,000 apartments for sale, are concentrated in supply-constrained sub-markets of Spain’s fastest-growing cities.
ActivumSG funds have concentrated on the secular trends of urbanization and ageing populations. Examples of investments include build-to-rent or for-sale projects in Spain and a development platform specialised in senior housing in Germany. These strategies complement building- or location-specific investments where ActivumSG’s team identifies value creation opportunities.
ActivumSG invests across the capital structure, from corporate acquisitions to real estate finance and ground-up development to repurposing existing properties.
Goldstein concluded: 'Demographic themes are a strong feature of our funds’ investments and we are exploring fresh ways to apply our expertise in the residential sector and in assembling business platforms of scale. Another focus is on markets where there are severe supply-demand imbalances, such as Spain’s booming hotel sector. We’re always looking to evolve our strategies to keep ahead of the pack and our growing team enables us to explore new avenues for the benefit of our investors.'