American investment giant Cerberus is making an unexpected shift in its Spanish real estate strategy. The company has decided to offload a substantial portfolio of residential properties, putting 3,300 apartments on the market with a total value of up to 800 million euros. Most of these apartments are located in Madrid, immediately drawing the attention of major market players and potential investors.
Deutsche Bank is acting as the intermediary, tasked with finding a buyer for this large-scale asset. The operation has been dubbed “Project Gloria” and has quickly become one of the hottest topics among industry professionals. The portfolio includes not only properties in the capital, but also a significant share in Valencia, Alicante, Sevilla, and Málaga. This geographic spread makes the deal especially attractive for those seeking portfolio diversification.
The market is on the move
The Cerberus deal is not an isolated case. In recent months, Spain’s property market has seen a wave of major residential sell-offs. For example, Blackstone is also preparing to part with a portfolio valued at 1.2 billion euros. Spanish firm Azora and Germany’s Patrizia are keeping pace as well, with both announcing plans to sell assets, including some in Catalunya.
The exodus of investors is largely driven by changing regulations. Stricter controls on the rental market, new requirements for owners of large portfolios, and increasing pressure from local authorities are forcing funds to rethink their strategies. For Cerberus, this is not a first: last spring, the company sold 743 social housing units to the Catalonia government, netting around €71 million.
Deal geography
The focus on Madrid is easy to explain: 77% of all apartments up for sale are located there. The rest are spread across Valencia, Alicante, Sevilla, and Málaga. All properties were acquired by Cerberus in recent years from Spain’s top banks—Santander, BBVA, and Sabadell. Now, the fund is choosing to step back and hand over the reins to new owners.
Interestingly, all the properties belong to MACC, a company fully controlled by Cerberus. The first offers from potential buyers are expected as early as February. Experts do not rule out that both Spanish and international investors will enter the bidding, as demand for rental housing in Spain’s major cities continues to grow, despite tighter regulations.
Trends and outlook
Spain’s residential real estate market is going through challenging times. On one hand, demand for rentals remains high, especially in major cities. On the other, new laws and restrictions are making it less profitable for foreign funds to hold large portfolios. Cerberus, like its competitors, chose not to wait for further changes and decided to lock in its profits now.
However, experts note that such deals could shift the balance of power in the market. If major funds continue to exit the residential sector en masse, renters and buyers could soon face a new wave of changes. Some will see opportunity, others—a threat to stability. For now, the intrigue continues: who will become the new owner of thousands of apartments, and what impact will it have on the market?
A View from the Outside
While Deutsche Bank negotiates with potential buyers, analysts are speculating about how the ownership structure in the housing market might change. It’s possible that part of the portfolio will be managed by Spanish companies, while another portion could go to international investors. In any case, a deal of this scale will not go unnoticed and will likely set the tone for further transformations in the real estate sector.
RUSSPAIN reminds that Cerberus is one of the largest investment funds in the United States, specializing in asset management across various sectors, including real estate, finance, and industry. In Spain, the fund actively acquired distressed assets from banks after the 2008 crisis, becoming one of the key players in the residential real estate market. The company is known for its aggressive investment strategy and frequent large-scale deals worldwide.
