The regional government of Madrid has sold a portfolio of residential flats to Goldman Sachs private equity and Azora, the investment group, for €201 million.
The sale is the latest in a spate of foreign private equity investors buying into Spanish real estate, the highest level of activity since the collapse of the country’s decade-long property bubble forced large swaths of its banking sector into being nationalised.
The deal will see Goldman Sachs and Azora buy a package of 3,000 flats, principally in Madrid city but also in other parts of the region. The flats are part of a scheme known as the “Young Plan”, which provides housing to people under 35 with below-average income and gives them the right to buy at a later point. The region did not reveal how the two investors split the equity investment for the deal. Source: The Financial Times Limited