Investment opportunites real estate

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Head Investment Management | Real Estate

3 Managed Funds
5 Professional Article

Aquila Capital is developing its opportunistic investment strategies with the goal of early an profitable identification of attractive markets and the timing of investments.

The main focus lies on selected residential real estate projects in Spanish metropolitan areas and logistics properties in European core / core-plus regions.

Real Estate Opportunities Spain - Residential Development

  • After the global economic crisis currently Spain's economy is growing faster than the European average.
  • Investors focus on metropolitan regions such as Madrid and Barcelona. Local project developers often lack equity for new projects.
  • The Spanish real estate market offers significant catch-up potential compared to pre-crisis level and thus attractive entry opportunities for investors.
  • Notable residential development is next to non-existent while demand is increasing and expected sales for newly constructed residential properties are above average.

Residential Living

  • Backlog in the Spanish housing market, because the portfolio of available residential units has significantly reduced since the real estate crisis. The obsolescence of existing structures is leading to a major backlog.
  • The share of investments in the residential development segment is comparitively low and clearly accounts for the smallest share compared to other real estate sectors (under 5%).
  • The growing rental market shows significant catch-up potential (from 9% in 2000 to 25% in 2015), the ownership proportion of 78.2% in Spain in 2016 is relatively high.
  • The supply of modern, affordable living space is relatively low.
  • Aquila Capital's Track Record: Market entry in 2014, EUR 393 Mio. project volume and 185,450 sqm total rentable area (as at: 31.03.2017).

European Logistics

  • Logistics properties offer additional returns in comparison to offices or retail properties with mostly long-term lease agreements.
  • The logistics market in Southern Europe is growing and offers higher returns compared to high-demand markets in Central Europe.
  • Rising demand due to the rapid development of e-commerce and upswing in Europe's retail sector.
  • The small size of shipments and a high demand for speed means distributors require more space and regional warehouses are needed.
  • As a niche market logistics properties require specialised experts with excellent market access.
  • Aquila Capital's Track Record: Market entry in 2013, EUR 191 Mio. Project volume and 125,200 sqm total rental area (as at 31.03.2017).