Azora strengthens its position in the US with $78M commercial portfolio acquisiton

• $78 million acquisition of two office buildings in Cincinnati, Ohio, totalling 28,000 square metres and leased on a 10-year agreement to Cincinnati Children's Hospital Medical Centre.
• This transaction brings Azora’s total investment into the U.S. to more than $450 million in 2022, spread across the commercial and residential sectors, demonstrating the success of its expansion in this market and the strength of its global offering.

Madrid, 9 February 2023. – Azora, through its subsidiary Azora Exan, has strengthened its position in the U.S. market by executing a number of transactions in the residential and commercial sectors in 2022, bringing its total investment to more than $450 million last year.

This includes the $78 million acquisition of a portfolio of two first-class office buildings spread across 28,000 square meters in Cincinnati, Ohio. The complex is used as the administrative arm of the Cincinnati Children's Hospital, and both properties are fully leased to the Cincinnati Children's Hospital Medical Centre, with a WAULT of 10 years. The complex is located at 400 Oak St., comprising Vernon Manor and 2905 Vernon Place, and sits near the hospital's network of clinical campuses and the city's central business district, as well as being positioned approximately 24 km from Cincinnati's International Airport.

This acquisition marks the latest addition to Azora’s commercial portfolio in the U.S., with Azora Exan also acquiring two offices in Chicago and Miami, and two shopping centres in Florida in 2022, as part of its non-discretionary strategy of investing in Core, Core Plus, Value Add and Opportunistic opportunities across the office, industrial and retail sectors of key U.S. markets.

This strategy also leverages Azora Exan’s deep experience in the U.S. via its sizeable multifamily strategy, which has already invested in more than 800 homes for rent in strategic markets in the south and southeast of the United States (Texas, North Carolina, and Georgia) since its launch in May 2022. The residential-for-rent fund, which has a total investment target of $650 million over the next 3 years, is focused on affordable residential rentals in built and operating multifamily properties that generate rents from the outset but have potential for improvement through repositioning and active management policies.

Azora entered the U.S. market through its strategic partnership with Exan, and the subsequent creation of Azora Exan in December 2021.

Ignacio Gil-Casares, Managing Partner of Azora Exan, commented: “Azora Exan is meeting its investment objectives in the U.S. market, and retains its conviction around our non-discretionary strategy focused on acquiring boutique office buildings located in prime locations within the business districts of major U.S. cities."

Fernando Pérez-Hickman, Managing Partner of Azora América, added, "We are very satisfied with the development of our residential and commercial U.S. strategies, both of which contribute to the acceleration of our investment plan to successfully consolidate a diverse portfolio of assets across key U.S. markets. Having been able to identify and execute a number of sizeable transactions in 2022 is testament to both our 20+ year track record as a real estate investment manager and our local expertise in our target markets."