BlackRock completes its first residential investment in Spain
BlackRock completes entry into the Spanish housing market. “Housing is the sector we like best, as well as student accommodation, flexible and social housing. In addition, we also pay special attention residential complex for sale“said Adolfo Favieres, general director of real estate in Spain, the largest management company of its type in the world, during the tenth IESE Business School Real Estate Day, organized by consultancy Savills and valuer Tinsa.
As ACTIVOS, the economic vertical of Prensa Ibérica, announced a few weeks ago: BlackRock is exploring various opportunitiesbut that’s behind the sentence Purchase of a building in the center of Madrid from the Treasury for 205 million euroswith intention transform it into “ultra-luxury” housing and student accommodation.
In addition to all these segments, the manager analyzed the capabilities of logistics warehouses, but low yields dissipated interest. Currently BlackRock not interested in data centerswhich he considers an infrastructure asset, nor office-to-home conversions because “technically viable buildings are few and far between and they don’t want to take on the planning risks.”
Difficult situation with raising capital
Rising interest rates and changes in the macroeconomic environment create challenges for fund managers faced with raising capital. “He market fundraising sank. Last year it fell by 39% and was at the 2012 level.“Explained Adolfo Favieres. Despite the difficult situation in the capital raising market, Favieres stressed that this does not prevent these funds from investing: “In exchange for the little money we raise, capital that investors have already invested in the past, managers like us, and we have not yet had investments are at historical highsfour trillion dollars.”
This capital provision will make 2024 “very exciting and full of opportunity,” the manager said. As for what will happen in 2024, BlackRock’s first real estate executive noted: “The first half will be unchanged, but I’m optimistic about the latter, and this is where we will start to see lower interest rates. Additionally, I foresee the alternative finance sector to be very active.” According to Favieres, asset price adjustments are still taking place in Spain: “Spain is the last to adjust values, hoping that this will happen. will never happen.”