25-06-2025
Aviva hunts partner as it seeks to expand Spanish housing bet
[MADRID] Aviva's investment arm is seeking a partner for its Spanish rental housing portfolio as it looks to double down on the country's acute housing shortage.
Broker Savills has been appointed to raise about 150 million euros (S$222.9 million) to inject into the portfolio that currently spans about 1,000 units, people with knowledge of the appointment said. The new capital will be used to expand the portfolio that is currently spread across five developments in Madrid, Barcelona and Palma de Mallorca, the people said, asking not to be identified as the process is private.
A spokesperson for Aviva Investors declined to comment on the appointment.
It comes as Aviva has formed a venture with Spanish developer Layetana Living to create a new operating company for its rental properties in the country, according to a press release on Wednesday (Jun 25). Aviva will own a minority stake in the new company named Propia, it said.
Spanish cities including Madrid and Barcelona face major housing shortages that have pushed rents and values higher. That's luring international investors including Patrizia, Hines, Nuveen and CBRE Investment Management.
'The Spanish residential market is undergoing a transformation, with demand for professionally managed, high-quality rental housing increasing due to demographic shifts, affordability challenges, and changing lifestyle preferences,' Aviva Investors head of pan-European real estate funds George Fraser-Harding said. BLOOMBERG
