Q Living will allocate €200 M to build more than a thousand rental properties
Qualitas Equity Group, a global alternative asset and investment management company, has launched its second real estate investment fund Q Living. This new fund plans to invest €200 million over the next five years to develop more than 1,000 affordable rental homes in the Madrid region.
At the moment, Qualitas’ second real estate fund has four developments underway in the new Madrid neighborhood of El Cañaveral and the town of Torrejón de Ardoz, which together total 252 homes. These developments are Residencial Q Living Cañaveral I, consisting of 58 homes and scheduled for delivery in the third quarter of 2022; Residencial Q Living Cañaveral II, which will have another 58 units and will be delivered in the same dates; Residencial Q Living Torrejón I, consisting of 36 units and also scheduled for delivery in the third quarter of 2022; as well as Residencial Q Living Torrejón II, consisting of 100 homes and scheduled for delivery in the second quarter of 2022.
Q Living’s rental development model is characterized by two-bedroom homes, with an average surface area of 70 m2, one or two parking spaces and private storage rooms in developments with swimming pools, leisure areas and a “Smart-Building” design focused on new technologies (Wi-Fi in common areas, app to facilitate communication with the rental manager and the contracting of services, modules for electric vehicles, bicycle parking, etc.).
Investment in Tectum
The first Q Living fund contributed, with an investment of €60 million, to the start-up of the company Tectum, whose portfolio has just been acquired by Axa Investment. Tectum is developing seven developments in the Madrid region, all of which are for rent, totaling 919 homes.
With the second Q Living fund, Qualitas reaffirms its commitment to residential rental investment, although now it will do so independently and without exclusivity, collaborating with the main developers in the national market. However, the Q Living management team will continue to provide management services to the Tectum vehicle. The Q Living team is led by Manuel Azpíroz, as Investment Managing Partner, and Rosa Gallego, as Operations Director, both from Tectum.
For Manuel Azpíroz, “the development of rental housing is for us a clear investment opportunity in assets that generate stable cash flows in the long term in an increasingly professionalized market”. According to Rosa Gallego, “the residential rental market has traditionally been in the hands of private individuals, and it is now that we, as asset management companies, are investing in the development of quality, new housing at affordable prices. For years this market has been the forgotten one because Spain has traditionally been a country of homeowners. Now there is a change in the housing trend, which allows us to cover the great existing demand by providing the rental housing stock with a greater quality offer with added services for tenants, such as housing developments with leisure areas and a Smart-Building design focused on new technologies.”