Asset manager Aviva Investors acquired a sustainable rental housing development in Spain in partnership with property developer Layetana Living.
Construction will commence in the summer of 2023 and be completed by Q4 2024.
The build-to-rent (BTR) development in the La Gripia district of Terrassa, Catalonia, will provide 85 units across a mix of one, two and three bedrooms alongside amenities such as a swimming pool, lounge, co-working facilities and gym.
Sustainability—achieved by adopting energy efficiency measures—will be important in keeping with Aviva Investors’ net zero targets across all real assets platforms by 2040.
Aviva Investors first partnered with Layetana last year when it acquired a 71-unit scheme in the Sants district of Barcelona.
George Fraser-Harding, head of European funds at Aviva Investors, commented: “Spain remains a market we are actively seeking opportunities in, as it continues to display strong fundamentals, complementing our growing European portfolio and focus on delivering an active equity strategy. We believe this approach will best serve our investors, with returns which can better reflect the changing risks and structural changes occurring across today’s real estate market.”
James Wells, BTR director at Layetana, said: “We have assessed a number of opportunities in the city and are excited to have identified this site in a consolidated area with excellent transport links to both Terrassa centre and Barcelona.”
Knight Frank, the global property consultancy, advised on the acquisition, while asset management company Sareb sold the site. Stuart Osborn, head of European residential investment transactions at Knight Frank, highlighted opportunities in satellite cities like Terrassa where demand outstrips supply for quality rental products.
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