Swiss-based real estate services company Stoneweg has unveiled plans to develop a 300-unit residential tower in Madrid, with media reports suggesting that both global alternative asset manager Ares and US group Greystar are vying to acquire the scheme.
Stoneweg, which purchased land plots along Paseo de la Dirección in Madrid from construction firm Dragados, a subsidiary of global property group ACS, is planning two residential blocks in total on the site.
According to Spain's Eje Prime, the first scheme will be delivered as a turnkey project with apartments for rent, while units are expected to be put up for sale in the second tower at an asking price of €4,500 per m2.
The deal for the first tower is expected to reach around €130 mln.
Stoneweg entered the Spanish market four years ago with an ambitious residential development strategy, with over €600 mln invested in the sector to date across nearly 40 projects.
Media reports suggest that the company is now in advanced negotiotions with both Ares and Greystar for the scheme. While the former was an initial favourite to execute the deal, Greystar is now understood to be moving into pole position.
Both Ares and Greystar have been gaining significant ground in the PRS market in Europe in recent months. In Spain alone, Ares has recently struck deals for hundreds of units with Aedes Homes, Metrovacesa and Momentum.
Greystar has been focusing on PRS and student housing opportunities in France, where it has built a pipeline of development opportunities. The fund has also just unveiled a €850 mln multifamily fund to develop PRS schemes in the UK.
CBRE is advising Stoneweg.