Aware Super makes €600m capital commitment to APG-owned Spanish resi REIT

Australia’s Aware Super has agreed to buy an equity stake in the Spanish residential REIT Vivenio, joining Dutch pension fund APG as an equal shareholder in the company.

APG will receive more than €400 mln from the sale and will reinvest half of it in Vivenio. Additionally, Aware Super has committed to invest a further €200 mln into the company to support its future growth, for a total capital commitment of over €600 mln.

With Aware Super secured as a major capital partner alongside APG, Vivenio will ‘continue its expansion with new acquisitions of operating assets, in-house developments and turn-key projects in major cities across Spain to become the leading Private Rental Sector (PRS) player in the Spanish market’, the company said in a statement.
In terms of rental income, APG is assuming 3 to 4% cash return per year from the Vivenio investment. ‘Now that interest rates are so extremely low, and we don't earn much on bonds, for example, that’s an excellent return. On top of that there is the expected annual revaluation of the real estate. As a result, this investment has an attractive total return every year,’ commented  Rafael Torres Villalba, expert portfolio manager of Real Estate Europe at APG.

Launched by the Dutch pension provider together with Spanish real estate listed player Renta Corporación in 2017, Vivenio Residencial Socimi is a major Spanish PRS platform dedicated to the development, acquisition and management of residential properties for rent in Spain. Vivenio’s portfolio consists of 34 yielding assets, 10 turn-key projects and 3 in-house developments located mainly in Madrid and Barcelona city, with almost 6,000 units and an estimated market value at completion of more than €1.6 bn.

’The additional commitment from both shareholders will allow us to grow further our quality portfolio, create significant synergies and economies of scale in our asset base and, most importantly, to keep providing our tenants with best-in-class residential properties,’ said Daniel Loureda, Chief Executive Officer of Vivenio.

Robert-Jan Foortse, head of real estate Europe at APG, commented: ‘As founding partner of this company, we are delighted that like-minded investor, Aware Super, is joining us and committing to work with us to grow the platform through an additional capital injection. Vivenio matches our strategy to deliver stable, long term returns in prime real estate worldwide on behalf of our pension fund clients. We look forward to working with Aware Super to expand the offering of best-in-class residential for rent properties in Spain.’

Alek Misev, portfolio manager – Property at Aware Super, added: ‘We are delighted to be partnering with APG again to purchase an equal ownership in Vivenio and launch our strategy in residential property in Europe. This opportunity reinforces our market-leading approach and complements our significant investments in the residential sector in the US and Australia. Increasing our exposure to quality, sustainable, secure and affordable residential assets like Vivenio, both in Australia and globally, is a critical element of our long-term strategy in property. We look forward to working with APG and Vivenio’s management team to continue Vivenio’s expansion plans and drive new investment opportunities in the sector.’


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