Insights > Deals

A&G and Hines agree on a €75 million flex‑living conversion in Madrid

13 October 2026 | JV | Spain | c. 400 units | Re‑development

The partners will convert a disused office building into accommodation with shared amenities for short-, medium- and long‑term stays, with an educational component.

Key details

Asset type

Re‑development

Location

Pozuelo de Alarcón, Spain

Capacity

c. 400 units

Party 1

A&G

Party 2

Hines

Value

c. €75 million

The re‑development will retain the building's main structure and add studios, twodios and double rooms, supported by co‑working and study areas, leisure facilities and landscaped space. Hines is the minority co‑investor and delegated manager.

The total planned investment in the project is approximately €75 million.

Strategic context

The project's proximity to major universities provides a natural source of student demand, while its flexible accommodation model allows it to attract a broader range of residents. This diversified customer base could reduce reliance on a single demand segment and support more stable occupancy.

However, the viability of the re‑development will depend on managing conversion costs, construction timelines and the final accommodation mix. While public capital may strengthen the financing structure, construction and occupancy risks remain key considerations for investors.

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