Investor in mid-sized assets H.I.G. Realty has bought two offices and a hotel in Madrid, Spain, to convert into homes.
The three-building portfolio in Arturo Soria, totalling 20,000 square metres, will be renovated. It will then be transformed into 267 units for rent and sale. The new scheme will include swimming pools, gym, food courts, cinema, terraces, and also a rooftop with dining areas.
Approval has been given to convert the Madrid offices and hotel into a residential scheme with strong environmental credentials.
Riccardo Dallolio, Managing Director and Head of H.I.G. Realty in Europe says, “We believe that the current residential market in Madrid benefits from strong fundamentals due to a lack of quality accommodation and high demand. This transaction demonstrates our ability to access sizeable assets in undersupplied markets with the potential of becoming a highly liquid, institutional product as the result of implementing our value-add initiatives”.
Esteban Caja Samboal, Managing Director at H.I.G. Realty in Europe, adds, “We plan to deliver a high-quality scheme which caters to the demand from young professionals and families for new housing with luxury amenities, within an exceptionally located Madrid district.”
The company would continue to look for opportunities in this sector, including converting obsolete office assets into state-of-the-art residential properties.
H.I.G. Realty is an affiliate of global alternative investment firm, H.I.G. Capital, which has US$59 billion of capital under management. It uses a hands-on approach to redevelop and reposition undercapitalized and/or insufficiently managed assets.
