Azora is the largest independent investment manager of real estate in Spain and one of the largest in real assets. Founded in 2003, Azora has a team of c.240 professionals, has raised c.€4.3bn of equity from institutional investors and has delivered 1.9x MOIC on its divested vehicles. Azora manages the complete investment cycle, from acquisition, restructuring, management, repositioning and eventually the sale of the assets. Azora is a pioneer in identifying new investment opportunities in untapped markets, where there is limited institutional capital deployed but which benefit from megatrend headwinds. In addition, Azora has a strong focus on asset classes with a high operational component and value-add potential.
Azora started as the first mover in the PRS segment in Spain and is the largest manager of purpose-built rented residential in Spain, with c. 14,000 homes. In 2011 Azora also became the first mover in the student housing segment in Spain, with a build-up which totalled 9,200 beds and an inhouse operator, which was sold to a consortium of leading institutional investors in 2017, achieving outstanding returns. In 2014, Azora listed Hispania, a Spanish REIT, pioneering the institutional investment in sun and beach hotels. Hispania became the largest hotel owner of this asset class in Spain, with 46 hotels. Hispania was bought in 2018 through a takeover bid by Blackstone, delivering a net IRR of +19%.
Azora focuses on various investment verticals, including hospitality, PRS, senior living, last-mile logistics, leisure, CRE, renewable energy and infrastructure.
Hotels: Air traffic has increased significantly, while domestic travel has almost reached pre-pandemic levels, benefiting domestic travel. In fact, domestic leisure is expected to be the first tourist segment to recover in 2022, followed by domestic business, then international leisure and finally international business. A sustained growth in the travel and tourism industry is a key driver to the growing lodging demand. We continue to see good acquisition opportunities and expect the next 12 months to lead to substantial investment volumes.
LOGISTICS: Logistics is benefiting from e-commerce penetration as well as the continued urbanisation trend. This increases the demand for logistics space and assets which are fit for purpose and well located, especially true in last mile logistics due to low availability of land in first-ring locations and a supply/demand imbalance, generating rent growth. At Azora we are invest- ing in this segment through two vehicles, with a granular aggregation strategy approach and with a focus on modern and newly built assets.
OFFICE: Offices will continue to be a key asset class. However, office tenants will change their demands and a number of current assets will not be fit for purpose as new configurations are required and ESG requirements continue to grow in importance. At Azora we are adapting to the evolving needs of tenants by focusing on prime locations and on new development or the refurbishment of existing assets.
RESIDENTIAL: The Spanish residential markets has traditionally been categorised as an owner’s market. However, in the past years there has been a behavioural change in the Spanish population, now more inclined to renting, a trend backed by other elements favouring this shift towards rental, such as the removal of all fiscal incentives for residential acquisition, the increasing mobility of people or the financial barriers to buying property.
Azora continues to believe that the PRS sector is an attractive segment in which to invest, both through the development of new buildings to be rented or through the acquisition of existing purpose-built assets.
SENIOR HOMES: The ageing population megatrend offers huge growth potential particularly in Spain. Aiming at the WHO target, Spain needs more than 70,000 beds. The demographic evolution will increase this deficit by another 11,000 beds per year, therefore driving the need for public and private investments in the sector, such as the investments realised by Adriano Care, within this key sector of our care infrastructure. Adriano Care aims to contrib- ute to the solution to the demographic challenge as well as to improve the quality of the services provided to the elderly.
RENEWABLE ENERGY: The continued electrification of the economy, along with the reduction of other technologies, provides a supportive power demand in the medium-term for renewable energy.
Given the significant reduction in renewable generation costs, investments in this type of energy has become an appealing investment theme, independently of subsidies, in order to obtain attractive returns.
Investment principles & strategy
Our investment decisions are backed by an experienced team which allows us to cover the whole investment cycle, while focusing on mega-trends which last throughout more than one cycle.
- Pioneers in identifying new investment opportunities in untapped markets but with potential to be institutionalised.
- Asset classes which will benefit from long term megatrend headwinds, across cycles and where an active value-add can take place.
- Focus on operationally intense/complex asset classes.
- Large and senior team, organised by investment verticals and with proven experience in complex investments and restructuring transactions.
- In-house technical team (leading all asset repositionings) and finance team, with leading relationships with the key local and international finance providers.
Active Asset Management
- Multidisciplinary professional team with relevant real estate experience.
- Proven capacity to add value through active asset management and in heavily operational businesses.
- Azora has a specific 170 person team focused on real estate property management and servicing, which currently manages more than 14,000 residential units in Spain.
- Azora has the highest standards of corporate governance and responsible investments based on integrity, transparency and excellence.
- Strong alignment with our investors through Azora’s co-investment in every different vehicle and the different remuneration schemes.
Strategic corporate development
Azora is a leading independent manager of real assets. We invest leveraging our broad in-house platform (240 employees) which encompasses the sourcing, origination and execution of investments as well as the asset and property management of assets. In addition, we benefit from highly experienced in-house teams on the financing, structuring, compliance and legal sides.
We have invested on a pan-European basis in a number of key verticals (including residential, hospitality and offices) and are currently expanding our network of preferred partners, to cover regions where we don’t have a local presence. In addition, we are also actively expanding our presence in the US market, through a strategic partnership.
Over the next five years we expect to double our assets under management and to continue entering new verticals and new geographies, with the support of both new and existing investors.