(London) – Aviva Investors, the global asset management business of Aviva plc, announces it has expanded its Spanish build-to-rent platform with the acquisition of a residential development site in the Butarque neighbourhood of Madrid, Spain.
It is the fifth investment made by Aviva Investors in the Spanish residential market, as it continues to grow its Spanish build-to-rent platform. The platform has now funded 928 homes across five developments, with a gross development value (‘GDV’) of approximately €300 million.
When complete, the scheme is expected to provide 207 residences via a mix of one and two bedrooms spread across eight storeys, representing a total floor area of more than 20,600 sq m. All properties on the upper floors will have private balconies, with terraces for those on the ground floor.
The project will target a BREEAM ‘Excellent’ certification, an EPC ‘AA’ rating in order to minimise ongoing energy needs and costs to residents, whilst also incorporating all-electric solutions to lower the need for future upgrades. Seeking to make the development future-fit, the building will include a high level of technological incorporation. The development will also provide residents with over 2,000 sq m of internal and external amenities including gym, swimming pool, co-working space and a children’s play area.
It is expected to be completed by end-2027.
The Butarque neighbourhood is located on the southern edge of Madrid city centre, in the district of Villaverde, and is an area which has undergone significant expansion and development in recent years. Primarily a residential district, it sits just 13km and a 20-minute drive from the centre of Madrid, whilst also benefitting from a range of nearby services including supermarkets and schools.
Aviva Investors’ purchase of the development site at Butarque increases its presence in the Madrid residential market, having forward-funded the development of a 234-unit residential complex in the Valdebebas area of the city. Its Spanish build-to-rent platform has also funded the creation of new home complexes in the Sants and Terrassa districts of Catalonia as well as the Nou Llevant district in Palma de Mallorca.
George Fraser-Harding, Head of Pan-European Funds, Real Estate, at Aviva Investors, said:
“Madrid has experienced significant population growth over the past decade, so we are pleased to grow our build-to-rent platform in Spain and to continue supporting the delivery of new homes across one of its most dynamic cities. This is a development that we believe helps residents get ready for the future by providing them with modern and energy-efficient homes that can minimise costs for those living in them, whilst being set in an exciting new neighbourhood with excellent access to the city. As the Butarque district continues to attract young families to it, not only will this scheme help meet housing needs in the city but it should also help it support long-term outcomes for investors.”
