Spain: Round Hill Capital has acquired two BTR assets in Madrid for around €30 million.
The investment has been made on behalf of Round Hill Capital’s European Residential Income Fund II (ERIF II), which now owns more than 3,100 units across Denmark, Germany, Ireland, Spain, the Netherlands and Finland
Round Hill Capital acquired the newly-built portfolio from Neinor Homes, which has guaranteed income at an occupancy rate of 98 per cent in the first year. Neinor Homes will also manage the properties.
The two assets are located in Parla, a municipality of southern Madrid, which has a growing population of 130,000 residents with an average age of 37.3 year. The area has seen rental growth of 6.6 per cent since 2015.
The first building offers 94 BTR homes, each with a corresponding number of storage units and parking spaces, while the second building comprises 53 unit, each with a storage room, and 60 parking spaces. The properties both have Grade AA energy certifications.
Michael Bickford, founder and CEO of Round Hill Capital, said: “The acquisition of this portfolio provides us with two high quality residential-for-rent assets which were only developed last year and are well located in southern Madrid. They produce day one income for our investors through a near full occupancy rental guarantee from the seller for the first year.”
“The assets’ high sustainability standards allow us to offer a good quality, modern living product to the growing and young population of Parla, while expanding our residential-for-rent portfolio in Spain, a market where we continue to see highly compelling opportunities. This is our second transaction of the year for ERIF II as we continue to deploy the dry powder on our balance sheet, pursuing opportunities both on and off the market at significant discounts to replacement costs,” he added.
