CBRE Global Real Estate Income Fund : Investment Management Acquires Two Affordable Residential Assets in Madrid

CBRE Investment Management ("CBRE IM"), on behalf of a fund sponsored by the firm, has acquired two newly built, affordable residential assets in Madrid, Spain.

The first is in El Cañaveral, acquired from leading integrated Spanish residential developer Neinor through a forward purchase structure. The state-of-the-art scheme comprises 8,932 sqm across two adjacent buildings and includes 94 dwellings, 123 parking units and 52 storage units. Due to be completed in December 2023, the asset has been built under a free rental regime with amenities such as a garden, green areas, children's area, gastro bar and swimming pool and is targeting energy label AA for the EPC rating and BREEAM-in-Use certification Very Good.

The second, located in Torrejón de Ardoz and acquired from Spanish developer Prygesa, similarly encompasses two adjacent buildings with 7,708 sq m lettable space, including 102 homes, one retail unit, 108 parking spaces and 102 storage units. It was completed in March 2023 and its location, with excellent access to Madrid's city centre, provides great connectivity to main highways and public transport systems, as well as close proximity to a range of services such as restaurants and supermarkets, a newly built shopping centre, schools and hospitals. The asset is also targeting BREEAM-in-Use Very Good.

Spain has an unconsolidated rental market in comparison to other EU countries, with 25% of households living in rental accommodation, but it faces both a supply-demand imbalance as well as much of the existing housing stock being outdated¹. Both assets will target middle-income households, from young professionals and key workers to seniors, offering them an affordable and sustainable place to live.

Antonio Roncero, Head of Transactions Iberia at CBRE Investment Management said: "These were fantastic opportunities to acquire high-quality assets, that will deliver affordable and sustainable homes in two excellent locations in a market with strong demand². Whilst demand for rental accommodation is increasing, the availability of stock is still limited, worsening housing affordability as a result. These acquisitions allow us to capitalise on those demands, making it an attractive opportunity to our investors whilst at the same time making a positive social impact."

CBRE IM has been advised by Elix and CMS.

¹ Source: INE, JLL, Ministerio de Fomento, Idealista & PMA (May 2023)
² Source: INE, Ministerio de Fomento (May 2023)

About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $148.9 billion in assets under management* as of March 31, 2023, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world's largest commercial real estate services and investment firm (based on 2022 revenue). CBRE has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE's data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management's presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.