MEAG acquires 50% stake in Culmia’s housing portfolio: advisors

The German fund MEAG has acquired a 50% stake from Culmia in a residential portfolio comprising approximately 1,800 affordable housing units, through the sale of 50% stakes in three project companies. The assets, which will be operated under a social rental scheme, are located in the Community of Madrid, Valencia and Benidorm. The transaction is valued at €262 million. Ontier advised the purchaser, while Ashurst acted for Culmia. EY and Linklaters provided tax advice.

The investment model is based on public-private collaboration, under which public authorities grant long-term surface rights for periods ranging from 45 to 75 years, while Culmia and MEAG are responsible for asset management and the development of the projects.

The initial portfolio comprises 1,782 homes, with plans to add a further 750 units, bringing the total to 2,500. Rents are expected to be set between 20% and 30% below market levels and will be updated in line with inflation.

Ontier’s team comprised partner Natalia Callejo Pla, lawyers Alfonso Vallés Rodríguez and Marta Sánchez Urgellés.

On Ashurst’s side, the transaction was led by Ismael Fernández Antón, partner in the real estate practice in Madrid, with the support of Sara Izquierdo, Román Hierro and Paula Heredero from the real estate team, and Camilo Luna and Marta Timoner from the corporate team.

Pictured, from left to right, Natalia Callejo Pla and Ismael Fernández Antón.