Created in 2003, Azora is a leading private equity manager focused on real assets, headquartered in Spain and with €13.2bn AUM across Europe and US. Having delivered 19% net IRRs and 2.1x MOIC on its divested vehicles, Azora has proven its ability to manage the complete investment cycle from acquisition to the eventual sale of the assets by controlling the restructuring, management and repositioning of the asset.

Seeking new investment opportunities in untapped markets, where there is limited institutional capital, Azora focuses on asset classes with high operational components and value add potential specialising in living, hotels, logistics, offices, retail, data centres and infra.

Azora prides itself in being a pioneer in the PERE industry launching its first BTR vehicle in 2003 and is currently managing the largest portfolio of purpose-built rented residential assets in Spain with circa 15.000 units undermanagement. Azora also pioneered the institutionalisation of leisure hospitality in Europe and has the largest solely-hotel focused fund investing across Europe and with currently c. €2bn of assets. In addition to these two assets classes, Azora invests across all other real estate asset classes, with a valueadd and opportunistic approach and across Europe with a special focus in Southern Europe.

Azora Group, through its US affiliates Azora Exan and Azora Advenir, is also actively investing in the US market across the complete spectrum of asset classes for all risk profiles. Currently Azora Advenir manages 12,000 residential units between multifamily and single family for rent and is currently with a secured development pipeline of 2,000 unit in SFR.

Performance verification

Azora has delivered 19% net IRRs and 2.1 x MOIC on its divested vehicles & 22% net IRRs and 2.38 x MOIC on its value-add funds.

Sector forecasts

OFFICE: Offices will continue to be a key asset class. However, tenants are changing what they require from their offices and part of the existing stock will not be fit for purpose as new configurations are demanded 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 complete refurbishment of existing assets.

RESIDENTIAL: A shift across Europe towards renting over ownership, driven by lifestyle changes and high house prices, has led to a shortage of quality rental housing. Azora continues to see the PRS sector as an attractive investment opportunity through developing new rental properties and acquiring existing assets adapting them to the new tenant demands.

HOTELS: Azora’s hospitality strategy focuses on the global tourism trend, with value-added and opportunistic investments in lodging and leisure across Europe. Target investments are undercapitalised hotels that require tactical repositioning to deliver superior returns.

LOGISTICS: Logistics remains strong due to e-commerce growth and the regionalisation of supply chains. Rental growth in prime locations is expected to continue due to limited new supply, restricted by inflation in construction costs and the increased demand in certain submarkets. Azora is investing in this segment through value-add acquisitions and developing newly built assets.

SENIOR HOMES: The ageing population offers significant growth potential, particularly in Europe. Azora’s investments aim to meet demand for more beds by increasing supply of refurbished facilities and new construction assets that improve care quality for the elderly.

STUDENT HOUSING: The growing demand for student accommodation presents significant growth opportunities, particularly in Spain, Portugal and Italy. With the increasing number of university students, these countries are expected to need more than 400,000 additional beds in the coming years to meet rising demand. This demographic shift, driven by local and international students, will further widen the gap by thousands of beds each year, underscoring the need for increased public and private investment in the sector.

ENERGY, INFRASTRUCTURE & CLIMATE: The continued electrification of the economy, along with reduced fossil fuel use, supports medium-term power demand for renewable energy. Decreasing renewable generation costs, combined with storage solutions, make this an appealing area for infrastructure investment. In Southern Europe, renewable fuels (eg, biomethane) and low penetration of new assets offer opportunities to develop essential infrastructure. Finally, as urban populations grow, urban mobility and circular economy infrastructure present areas where Azora can support sustainable growth through expertise.

DECARBONISATION: The EU’s 2030 net-zero targets are prioritising decarbonisation in real estate investment strategies. Sustainable building practices, renewable energy and energy-efficient retrofitting are creating new opportunities in the sector. Azora’s European Climate Solutions fund invests in lower middle market companies with innovative decarbonisation solutions for real assets, including waste management, sustainable construction and energyefficient upgrades.

Investment principles & strategy

Our investment decisions are backed by an experienced team which allows us to cover the whole investment cycle, while focusing on megatrends which last throughout more than one cycle.

Strategy Selection

  • 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.

Execution Capacities

  • 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 circa 160-person team focused on real estate property management and servicing, which currently manages more than 15,000 residential units in Spain.

Corporate Governance

  • 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 (more than 600 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 do not have a local presence. In addition, we are actively expanding our presence in the US market, through Azora Exan, Azora’s subsidiary.

Azora has just announced a $3bn partnership with Advenir to expand its US presence, focusing on acquiring and developing multi-family and single-family rental communities. This strategic move aims to tackle the housing shortage while strengthening Azora’s footprint in the American market.

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.

COMPLIANCE STATEMENT

The information herein is for the sole purpose of providing general information to institutional investors about Azora Capital, S.L. and its affiliates. Azora Gestión, S.G.I.I.C., S.A.U., (fully owned by Azora Capital) is authorized as an alternative investment fund manager firm pursuant to the AIFMD (Alternative Investment Fund Manager Directive) (Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011) and is registered with the Spanish Securities Market Authority (Comisión Nacional del Mercado de Valores) in the Collective Investment Scheme Management Companies Registry (Registro de Socieddes Gestoras de Inversión Colectiva) under registration number 236. Neither Azora Capital nor its affiliates make any express or implied representation or warranty as to the accuracy or completeness of the information provided herein. No guarantee or assurance is given that any forecast or opinion contained herein will be realized. Azora Capital does not commit to correcting, update or supplement any information herein. This does not constitute investment advice and should not be interpreted as the promotion or marketing of any services or financial products (including, for the avoidance of doubt, investment vehicles) sponsored or offered by Azora and its affiliates. All information herein is as of October 1, 2024, unless otherwise stated.