Azora revives its rental housing platform. The Spanish management company, founded by Fernando Gumuzio and Concha Osácar, was a pioneer in Spain in the development of a company specializing in rental apartments in 2004. Lazora, now renamed Nestar, Managed to exceed 7,500 rental flats. However, this does not end there: company promised to reach 9,000 units by 2024. Once they reach this point, the portfolio will be worth over 1.8 billion euros.
The company in the coming years will be released hire Professionalized 1,500 homes. The first 500 homes are already in the marketing phase and are located in Alcalá de Henares (128) and El Cañaveral (370). In the coming months, another 268 floors will be completed in El Cañaveral (160) and Butarque (108). Alongside these projects, Azora plans to launch 430 additional units in Seville and 250 in Valdemoro.
One of the biggest features of this tool is that it is not set up as a socimi (real estate investment company), which allows them to benefit from low taxation. But this corporate formula will force them to be listed on the stock exchange in less than two years, as company executives confirm, and it’s something they won’t do. The housing platform is also not planned to be sold to a mutual fund..
In the last 18 years, Azora has been “the largest creator of subsidized public rental housing in Turkey”. Spain”. This allowed the Spanish manager to become one of the largest homeowners in the country after only CaixaBank, Blackstone and Sareb; According to a report by Atlas Real Estate. In this case, another study by consulting firm EY shows that the Spanish executive’s apartment platform is renting domains between 7% and 20% below market price.
Javier Rodríguez Heredia, a senior partner at Azora, confirmed in a phone call organized by the company: They have apartments that can be rented from 275 Euros per month., from 350 euros in the case of Madrid. The portfolio average is 8 Euros per month per square metre, compared to the average for the Spanish market of 11 Euros. Nestar operates in 18 provinces and more than 40,000 families have lived on one floor of the investment vehicle since its establishment.
building renovation program
Parallel to the growth Azora designs a renovation plan for residential buildings. “Affordable housing should be of good quality and in some cases they are over 18 years old and we take the opportunity to renovate them when a tenant leaves,” Rodríguez Heredia says. The reform program includes 60 to 75 million euros to improve the energy efficiency of buildings and 75 million euros to adapt buildings and their common areas.
Executive leaves the door open for participation in public-private partnership programs.. “We’re interested in public-private partnerships. We’ve looked at everything that has come out so far, but it didn’t suit us. Yet we continue to believe in them and we’ve had this product in the past.” Azora approved of her partner. In such projects, a public administration transfers the land it owns to a private person in exchange for the winning company to build and rent housing at an affordable price. The Community and Madrid City Council or the Ministry of Transport, Mobility and Urban Agenda work hand in hand with Sepes on such a formula.
House for rent
Investment in rental homes exceeded €27,300m in the first nine months of 2022, according to a report published last week by consulting firm Savills. The Spanish market accounted for 7% of this figure. more than 1.9 billion. This figure includes both rental buildings in operation and buildings under construction for this purpose.
Despite the appetite of major international mutual funds, the market will calm down in the coming months. Why? Why? Given the rise in interest rates and the accompanying cost of financing, the return investors demand is higher. On the other hand, the return of owning a rental apartment portfolio is quite low. Depends on the region but It is 3.5% in the center of Madrid and 3.75% in the center of Barcelona.. This means that those looking to sell will have to do it cheaper than a few months ago to respect the buyer’s profitability, something that hasn’t happened yet and has caused operations to cease.