Explore the latest development as Bankinter Investment pours €140 million into Palatino Residencial, sparking new opportunities in the residential rental market of the vibrant Community of Madrid. Learn how this strategic move is reshaping Spain’s real estate investment market.
The Spanish real estate market continues to draw significant attention, with Spain real estate investment remaining resilient, particularly in the residential rental sector. In 2024, Bankinter Investment has reaffirmed its dedication to the market with a substantial €140 million capital injection into its residential rental vehicle, Palatino Residencial, underscoring growing investor interest in Madrid’s rental housing space.
Bankinter Investment and Vía Ágora: Powering Rental Housing Growth
Bankinter’s latest move strengthens its partnership with Vía Ágora, a leading property developer headed by Juan Antonio Gómez-Pintado, known for his influential roles with Apce Spain and Vía Célere. This strategic alliance has been key in the creation and growth of Palatino Residencial—a dedicated investment vehicle aiming to build a premier residential rental portfolio in the Community of Madrid.
Established in 2023, Palatino brings together Bankinter’s private banking funds and the development expertise of Vía Ágora. The platform, primarily funded through Bankinter’s clients via Bankinter Investment Alternative and Bankinter Investment SAU, adopts a long-term investment horizon, set initially for ten years with potential annual extensions. The ambitious project targets a real estate portfolio of 6,000 rental properties, focusing on the thriving Madrid market.
Palatino’s Expanding Residential Portfolio
In just a year and a half, Palatino has gained impressive traction—boasting 1,700 homes already in the pipeline. Notably, 70% of these are linked to Madrid City Council’s affordable housing initiatives, reflecting a strong focus on accessible residential options.
The initial injection of capital into Palatino was €210 million, and the investment vehicle has employed a dynamic funding strategy that includes periodic capital increases. The latest €140 million boost aims to accelerate further development and acquisition activities. Bank financing remains integral to Palatino’s strategy, with financial leverage targeting a Loan To Value (LTV) ratio above 55%.
Madrid-Focused Development and Strategic Acquisitions
Palatino’s foundational portfolio was seeded with 1,685 homes under construction, currently located across Madrid. The combined built area will reach 133,221 square meters upon completion. Affordable rental housing forms the core of the portfolio, including 1,311 units acquired through Council tenders. These comprise three prime lots totaling over 1,300 apartments, expected for delivery by February 2026.
In addition, Palatino has diversified with the high-profile acquisition of the Madnum building in Méndez Álvaro. Purchased from Colonial for €13.52 million, this asset adds 374 residential units across 19,000 square meters and is already boasting a 75% occupancy rate following an investment in modern furniture and equipment.
Impressive Financial Performance for 2024
According to recently disclosed 2024 accounts, Palatino generated rental income of €377,105 and reported a positive annual profit exceeding €800,000. This robust performance was bolstered by €2.8 million in financial income, reflecting the strong fundamentals of Spain real estate investment and confirming the appetite for residential rentals in Madrid.
Bankinter: A Leader in Diversified Real Estate Investment in Spain
Bankinter, under the leadership of CEO Maria Dolores Dancausa, is cementing its position as a key player in Spanish real estate investment. The bank’s portfolio extends beyond residential development, including REITs (Real Estate Investment Trusts) such as Atom (hotel sector, managed by GMA), Ores (commercial assets, in alliance with Sonae Sierra), and Montepino (logistics). This multi-sector approach allows Bankinter to capture value across different segments of the Spanish real estate market.
Why Spain Real Estate Investment Remains Attractive in 2024
Bankinter’s continued investment and innovation in the rental housing sector highlight why Spain real estate investment is considered one of Europe’s most dynamic opportunities. With ongoing capital injections and a focus on both affordable and market-rate housing, vehicles like Palatino provide investors with diversification and long-term growth potential in Madrid’s competitive rental market. As demand for quality housing continues to rise, Spain’s residential market—and leaders like Bankinter—are well-positioned for a bright future.
