Allianz expands Spanish PRS exposure with acquisition of prime portfolio in central Madrid

Allianz Real Estate, acting on behalf of several Allianz group companies, has acquired a portfolio of nine prime residential buildings in the Chamartín district of Madrid for EUR 185 million. Located next to Castellana 200, a mixed-use office and retail asset already owned by Allianz Real Estate, the transaction consolidates the firm’s ownership of the wider block and expands its exposure to the highly attractive Spanish PRS sector, particularly in Madrid.

In total, the nine assets include 245 residential units plus additional retail space. Eight of the assets have been sold by the SOCIMI Testa Residencial, a listed corporation for investing in real estate, and the properties are located in the streets Felix Boix 4, 6, 8 and Doctor Fleming 39, 41, 43, 45 and 57. In a ninth asset located in Carlos Maurrás 7, Testa Residencial sold selective residential units, with the balance being owned by private owners.  

The block is located in a highly desirable location in the north of Madrid’s city centre, benefitting from significant local amenities and excellent transport links. It also sits near one of Europe’s largest regeneration projects, Madrid Nuevo Norte, the redevelopment of a 5.6km long and 1km wide plot which will result in 1.6m sqm of commercial and 1.1m sqm of residential assets.

The units will be upgraded to bring them in line with Allianz Real Estate’s ESG program, in particular Carbon Risk Real Estate Monitor decarbonization pathways. The firm has a target to reduce carbon emissions across its portfolio by 25% by 2025 and be carbon net-zero by 2050.

The acquisition fully supports Allianz Real Estate’s strategy of investing in new or newly refurbished, high-quality assets with strong sustainability criteria in prime urban locations targeting the mid-market segment. It is the second PRS sector deal in Spain: in June last year it acquired 421 prime residential units in 21 assets located in Madrid and Barcelona through the purchase of a controlling stake in a joint venture vehicle owned by several prime investors. 

Castellana 200 was acquired by Allianz Real Estate in 2019. Located in Paseo de la Castellana, the most important street in Madrid’s central business district, the asset is comprised of two prime office buildings with a gross lettable area of over 20,000 sqm. It also incorporates a 6,500 sqm upmarket shopping center.

Miguel Torres, Head of Iberia, Allianz Real Estate, said: “This latest deal, in one of the best residential locations in Madrid, illustrates our strong desire to expand in Spain and build our PRS exposure. It represents a unique strategic means to consolidate ownership of the Castellana 200 block, potentially creating additional value through synergies. The location, quality and concentration of the assets adds further diversification and scale to our portfolio, and we remain focused on additional opportunities in the residential as well as other sectors in Spain.”

Alexander Gebauer, CEO West Europe, Allianz Real Estate, said: “We’re delighted to have worked once again with Blackstone, a trusted and long-term institutional partner, to realise this latest opportunity. Such relationships sit at the heart of the Allianz Real Estate business model. Residential as an asset class has escalated in significance for us in Europe given the attractive fundamentals, and our focus remains on centrally located assets where we see the highest tenant demand and broader mix of residential uses.”

Allianz Real Estate is a PIMCO Company, comprising Allianz Real Estate GmbH and Allianz Real Estate of America and their subsidiaries and affiliates.  It is one of the world’s largest real estate investment managers, developing and executing tailored portfolio and investment strategies globally on behalf of a range of global liability driven investors, creating long-term value for clients through direct as well as indirect investments and real estate financing. The operational management of investments and assets is performed out of 17 offices in key gateway cities across 4 regions (West Europe, North & Central Europe, USA and Asia Pacific). For more information, please visit:  www.allianz-realestate.com. PIMCO is one of the world’s premier fixed income investment managers. With its launch in 1971 in Newport Beach, California, PIMCO introduced investors to a total return approach to fixed income investing. In the nearly 50 years since, the firm continued to bring innovation and expertise to our partnership with clients seeking the best investment solutions. PIMCO has offices around the world and 3,000+ professionals committed to delivering superior investment returns, solutions and service to its clients. PIMCO is owned by Allianz SE, a leading global diversified financial services provider.

Source: Allianz Real Estate, data as at 31st December 2021.

These assessments are, as always, subject to the disclaimer provided below.

The Allianz Group is one of the world's leading insurers and asset managers with more than 122 million* private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 714 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.7 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2022, over 159,000 employees achieved total revenues of 152.7 billion euros and an operating profit of 14.2 billion euros for the group***.
* Including non-consolidated entities with Allianz customers.
** As of June 30, 2023.
*** As reported – not adjusted to reflect the application of IFRS 9 and IFRS 17.

Press contact

Paula Eirich
Allianz Real Estate
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