ASG’s Iberia Fund I to invest €82 million in 450-unit residential project in Madrid commuter belt city of Alcalá de Henares
27th September 2016
Jersey (UK), September 27th, 2016 – A fund focused on Spain that is managed by ActivumSG Capital Management Ltd., the European real estate turnaround specialist, is investing €82 million to acquire and develop a 2.2-hectare site in Alcalá de Henares, the historic city within commuting distance of Madrid.
The land purchased by ASG’s Iberia Fund I has planning consent in place and the fund is aiming to construct a complex of 450 apartments on it, with underground parking and amenities including a communal swimming pool.
Saul Goldstein, Founder and Managing Partner of ASG, said: “There’s a shortage of new housing in Alcalá, where there is strong demand from families wanting to move into a city that is a short travel distance to Madrid and also has a lot going on itself. These local market dynamics are highly supportive of prices, making the development an attractive investment with similar characteristics as the other residential development site that the fund purchased in the Greater Madrid area earlier this year.”
Located 35 kms north east of Madrid, Alcalá is renowned for having one of Spain’s largest and oldest universities, while its Medieval center is a tourist attraction because of its UNESCO World Heritage status.The site acquired by the fund is a short walk from the railway station, from where the journey time to central Madrid is 35 minutes. The international airport is a 15-minute drive away, while the planned development is also close to La Garena, one of Spain’s best-known shopping centers.
The targeted start of the five-phase development is the second half of 2017, subject to construction permits. The fund is targeting three- and four-bedroom apartments in a 46,500 sq.m. complex that will feature terraces overlooking landscaped gardens, sports facilities and a swimming pool.
The investment in the project means that ASG’s Iberia Fund I has committed all of the €200 million of equity that it raised by the final close in 2015. Other assets owned by the Fund include a mixed-use building in Madrid, a hotel development in Malaga, a 15-hectare residential development site in San Sebastian de los Reyes near Madrid, and the recently announced purchase of a portfolio of three shopping centers.