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Case study Villaverde, residential living in Madrid

In 2015, Aquila Capital tendered nine plots of land totaling around 52,500 square meters in Madrid-Villaverde. The land that was previously owned by the Spanish government. The area is intended for housing development with a total of approx. 120,500 m² of living space and 1,200 residential units planned. It is one of the largest contiguous housing projects in Madrid.

The planned residential units are for sale and are usually already sold on the basis of the planning documents. Their construction is started at a sales level of more than 50% per construction phase. Until completion, it is planned that all apartments will be sold. The re-enabled access to mortgage financing means that new housing can be sold over budget at market prices in a timely manner. The relatively low price level of residential units for sale, up-to-date equipment and the limited supply of new construction also speaks for a high demand from the buyer side.


Asset data 
LocationVillaverde, established district in the south of the Madrid metropolitan area
Type of asset/completionResidential development (subsidised residential development, flats) with assumed completion by the end of 2019
Size (gross floor area above ground)approx. 120,500 sqm residential (1.200 residential units), 33,656 sqm parking (approx. 1,200 pariking spaces), 8.141 sqm basement
Plot sizeapprox. 52,500 sqm
AcquisitionQ4 2015
Holding periodSale of all residential units within 24 to 30 months per construction phase


Visualisation of the development of residential living
Visualisation of the development of residential living

The area creates its own small district, which stands out by its generosity of the dense surrounding buildings. After completion the plots will have a communal pool, sports places and green areas.

The housing project will be implemented during nine phases, which will be developed sequentially. Due to diversification aspects, different architects are commissioned for the planning and different construction companies will be used throughout the construction phase.

Visualisation of the development of residential living
Experienced partners
Experienced partners
  • Aquila Capital Real Estate Investment team – Acquisition and project management by the real estate team in Hamburg. Our real estate team has more than 100 years of investment experience with an aggregate investment volume of more than USD 5 billion.
  • Local Aquila Capital team – the local contact person in Spain, responsible for local controlling and organization has more than 20 years of experience in real estate project development.
  • InmoGlaciar – project partner; Spanish real estate company with more than 35 years of real estate development experience, with a special focus on Madrid and Barcelona.
  • SEPES – State company, responsible for the development and sale of state-owned land.
  • Touza Arquitectos und Rubio Arquitectura – already used architectural firms.
    • Touza Arquitectos has more than 35 years of experience in the planing von projects in the fileds of residential, office and commercial property and can refer to more than 1,500 realised projects. In the field of subsidised housing, the company has received several awards.
    • Rubio Arquitectura belongs to Carlos Rubio Carvajal, a multi-award winning architect from Madrid with more than 30 years of experience in planung of residential, office and commercial real estate.
  • Prointec – Company engaged in engineering, architecture, infrastructural consulting, urban planning and environmental services with over 600 employees in Madrid only. Responsible in the project for the technical due diligence and the future project management.


  • Low competition with comparable project developments in the broader environment.
  • New building with the required equipment (parking, lift, pool, balkony, fitness etc.)
  • Well established district in the urban area of Madrid.
  • Very well developed infrastructure as well as connection topublic transport.


  • Positive development of the Spanish economy.
  • Conservative assumptions in the cash flow model.
  • Strong demand for cheap condominiums in Madrid.
  • Low financing costs for potential buyers.


  • Use restriction (requirements for subsidised housing)
  • Construction delays with correspondingly higher costs and lower returns. Project development relies on the contribution of third parties, in particular dependant on the cooperation with the local authorities.


  • Project development, but guaranteed construction costs through a general contractor, if necessary allocation to several general contractors for risk diversification.
  • Size of the project (approx. 162,500 sqm total), but successive development of nine construction phases according to sales progress.
Aquila Capital Real Estate
Aquila Capital Real Estate
  • Aquila Capital Real Estate is within the Aquila Group responsible for investment management and asset management as well as client advisory in real estate.
  • The real estate team has more than 100 years of investment experience with an aggregate investment volume of more than USD 5 billion.
  • The team has a particular expertise in the real esate sector in Spain - several team members have developed on-site projects in Madrid for large real estate companies and have an extensive network.
  • In total, more than 50 experts devote themselves to the development, structuring and implementation of the real asset investment strategies of Aquila Capital.
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