Created in 2003, Azora is a leading real estate, infrastructure & energy manager, headquartered in Spain and with €14.6bn AUM across Europe and US. Having delivered 19% net IRRs and 1.8x 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, infra and most recently, private equity segment.

Azora prides itself in being a pioneer in the PERE industry launching its first BTR vehicle in 2003 and the creation of the largest purpose-built student accommodation platform in continental Europe with more than 10,000 beds. 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 under management. Beyond these two asset classes, Azora maintains exposure across the full range of real estate sectors, actively managing its portfolio along the risk–return spectrum to capture opportunities arising from sectoral demand shifts and macroeconomic trends.

The past year, Azora has sought to diversify its investments in new segments such as private equity, through its climate solutions fund. Most recently, Azora has begun launching its third multi-strategy vehicle, designed to invest across the sectors in which the firm has established expertise, with a strategic focus on Southern Europe, which has already caught the attention of major institutional investors around the world. Additionally, building on emerging trends in energy and technology Azora is also advancing its fourth infrastructure vehicle (ASIF), which will target opportunities in energy transition, digital infrastructure, and urban optimization, reinforcing the firm’s commitment to sustainable and future-oriented investment themes.

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 1.8 x MOIC on its divested vehicles & 24% net IRRs and 2.0 x MOIC on its divested value-add funds since inception.

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, characterized by its vertically integrated platform. 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 closed the past year 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 was aimed at tackling 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, explore other type of vehicles and continue entering new verticals and new geographies, with the support of both new and existing investors.

Sector forecasts

HOSPITALITY: Azora’s strategy in hospitality is to capitalize on the global tourism megatrend, with a particular focus on the large vacation lodging and leisure industry. This will be achieved through value-added and opportunistic investments across Europe in lodging and other alternative leisure investments located in cities, rural areas, mountains, and coastal locations (the “Target Location”). The target investments will be undercapitalized or inadequately managed hotel, leisure, and lodging opportunities where active management initiatives and tactical repositioning capabilities are required to achieve superior returns.

OFFICE: Offices will continue to be a key asset class. However, office tenants are changing what they require from their offices 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: Over the past years, we have seen a growing shift across Europe towards rental as opposed to outright buying of residential assets. This has come about due to generational changes and also due to growing house prices. We see an acute shortage of high-quality affordable rental housing and believe the supply/ demand imbalance will continue to provide strong fundamental support to the sector over the medium term. 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.

LOGISTICS: Logistics is benefitting from e-commerce penetration as well as the continued urbanization trend. This increases the demand for logistics space and assets which are fit for purpose and well located, especially true in lastmile logistics due to low availability of land in first-ring locations and a supply/ demand imbalance, generating rent growth. At Azora we are investing in this segment through two vehicles, with a granular aggregation strategy approach with a focus on modern and newly 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 realized by Adriano Care, within this key sector of our care infrastructure. Adriano Care aims to contribute to the solution to the demographic challenge as well as to improve the quality of the services provided to the elderly.

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 ManagementCompanies 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.