|Aquila Real Estate Opportunities II Strategy|
Investment opportunities in real estate
Aquila Capital is furthering its opportunistic investment strategies by identifying early profitable and attractive markets.
The main focus is to select residential real estate projects in Spanish metropolitan areas and logistics properties in European core / core-plus regions.
- New construction and subsequent sale of housing complexes in Spanish metropolitan regions.
- 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, because local project developers often lack equity for new projects.
- The Spanish real estate market offers significant catch-up potential compared to the pre-crisis level and thus attractive entry opportunities for investors.
- Modern and affordable residential developments are largely non-existent while demand is increasing and expected sales for newly constructed residential properties are above average.
- Leasing of attractive core properties in Spain's metropolitan regions.
- Backlog in the Spanish housing market, because the portfolio of available residential units has significantly reduced since the real estate crisis.
- The share of investments in the residential development segment is comparatively low and accounts for the smallest share compared to other real estate sectors (under 5%).
- The growing housing rental market shows significant catch-up potential (from 9% in 2000 to 25% in 2015), while simultaneously the ownership proportion of 78.2% in Spain (2016) is relatively high.
- The supply of modern, affordable living space is relatively low.
- Steady improvement of Spain's macroeconomic situation resulting in rising demand for high-quality residential properties.
- 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.