Including leverage, BRISA will have an implied total investment capacity of comfortably over €1 billion and will target the development of more than 8,000 units over the next five years. BRISA’s strategy will be the same one Azora has implemented since the launch of its first residential vehicle back in 2003, with a primary preference for turnkey projects in long-term strategic collaborations with national and local developers but also complemented by land acquisitions for own-development opportunities, in order to ensure a sizeable and stable rhythm of production of new BTR units. The capital will be deployed across a number of strategic micro-locations in Spain which have been identified as having fundamentals that support purpose-build PRS outperformance. These include locations in and around Madrid, Barcelona, Seville, Malaga, Palma de Mallorca and Valencia, amongst others.
The portfolio will be property managed and leased by Azzam, Azora’s wholly owned residential leasing and property management subsidiary, which was established more than a decade ago and currently manages c.15,000 PRS units on behalf of Azora and other institutional investors.
The Spanish residential for rent market is one of the European real estate markets with the largest potential, supported by strong structural tailwinds and with the current deficit of homes for rent estimated at c.2.5 million over the next 15 years. Additionally, the market is currently characterised by fragmented ownership and a low share of professional institutional players, which presents an opportunity for investment managers with deep local knowledge and understanding to aggregate a large and institutional-quality portfolio.
Azora has a track record of over 19 years of investing in the Spanish residential-for-rent sector, having been the first institutional investor to enter the market in 2003, with the launch of its first BTR vehicle. Azora has managed over €2.6 billion of residential assets on behalf its global client base, across seven different platforms and has firmly established itself as the region’s leading investment manager in the sector, proving that with the right strategy and professional management it’s possible to attract long-term institutional capital to the rental residential space.
Source : Company