Grupo Hercesa and Buenavista Equity Partners (“Buenavista”), a private equity group specialising in the Spanish low/mid-market segment have formalised an agreement to develop “Ciudad del Aire”, a flex-living project in Alcalá de Henares (Madrid) with total funding of €23.24 million. The scheme, jointly promoted by both firms, consists of 128 apartments designed to cater to short, medium and long-term stays, including tourism, student and professional accommodation, driven by the cultural, economic, academic and healthcare appeal of the Corredor del Henares region, northeast Madrid.
The transaction strengthens Hercesa’s strategy of developing quality real estate assets in established locations in partnership with leading institutional investors. The investment is structured through the special purpose vehicle Hercesa Housing, S.L., with Hercesa Patrimonio Inmobiliario retaining a majority shareholding and Buenavista, through its Buenavista NextGen Urbano fund, holding a minority stake through NextGeneration EU funding for €5.64 million. The project is further supported by a €11.7 million bank loan provided by BBVA.
This structure enables the development of two separate buildings with a total of 128 units (140 beds), comprising studios as well as one and two-bedroom apartments. The scheme also includes a car park with 103 spaces, landscaped communal areas, a swimming pool, gym, coworking space and a retail area. The asset has all the necessary planning permissions in place, with construction having commenced in December 2025 and completion scheduled for March 2028.
The complex will be managed by Hercesa Gestión under the AT Home brand, operating through a management contract. The operating model incorporates efficiency standards and advanced services, offering flexible rental options and agreements tailored to the mobility needs of students, healthcare professionals and corporate tenants in the Corredor del Henares area.
The project addresses the high demand for quality accommodation around Alcalá de Henares, where there is currently a shortfall of more than 3,000 beds for medium and long-term stays. The steady arrival of students (4,300 at the University of Alcalá de Henares) and rotating staff at the Príncipe de Asturias Hospital, along with a constant flow of tourists and business travellers drawn by Corredor del Henares’ industrial and logistics hub, have all contributed to a significant need for both short and medium-term housing in the area.
Alejandro Solano, Head of Business at Grupo Hercesa, commented: “Ciudad del Aire reflects Hercesa’s ability to deliver innovative, high-quality schemes in strategic locations, drawing on our expertise as developer, builder and asset manager to oversee every stage of the project. Partnering with a leading institutional investor such as Buenavista enables us to respond effectively to genuine housing demand Corredor del Henares and further strengthen our model for creating sustainable, long-lasting spaces.”
Victoriano López-Pinto, Managing Partner at Buenavista Infrastructure, said: “This transaction strengthens Buenavista’s commitment, through its NextGeneration EU fund, to support new forms of accommodation that address strong demand in key locations, while prioritising profitability, sustainability and urban regeneration. Alcalá de Henares is an excellent example of collaboration between developers and institutional investors, aimed at delivering flexible, modern and resilient infrastructure.”
Buenavista NextGen Urbano and funding provided by NextGenerationEU
Buenavista is making this investment through Buenavista NextGen Urbano, a vehicle established by its Infrastructure division after being appointed by the European Investment Bank (EIB) as a financial intermediary to channel €200 million from the Fund of Funds, using resources from the Regional Resilience Fund, which forms part of Spain’s Recovery, Transformation and Resilience Plan and is financed by NextGenerationEU. These funds are aimed at supporting economically viable projects related to affordable housing, urban development and sustainable tourism.
With this real estate development, the fund has now closed six financings for urban regeneration and sustainable tourism projects in Spain. Previous investments include support for Eranovum’s deployment of charging stations for electric vehicles, Gemswell Madrid Surf for the construction of Europe’s largest artificial surfing lagoon, the development of an aparthotel in Zarautz (Guipúzcoa), SOKAI Hub Gipuzkoa for its life sciences centre in San Sebastián, and the development of an affordable rental scheme in Burgos. The fund is expected to undertake between 15 and 20 transactions over its lifetime, with a maximum investment of €22 million per project.
Advisors
Buenavista and Hercesa were advised on this transaction by PwC, which also conducted the commercial due diligence. AON acted as insurance advisor, while the technical and sustainability reviews were carried out by TYPSA and Zero Consulting, respectively
About Grupo Hercesa
Hercesa is a property company with a 50-year track record, specialising in the development, management, construction and marketing of residential, commercial, industrial and logistics projects. Founded in Guadalajara, the company has established a fully integrated management model that covers every stage of real estate development, from land transformation through to delivery and after-sales, with a focus on quality, efficiency and the creation of sustainable, long-lasting spaces. With an international presence and a team of more than 500 professionals, Hercesa has delivered over 30,000 homes and managed more than 50 million square metres of land. The company operates in markets including Spain, Portugal, Romania and Bulgaria, combining experience, innovation and geographical diversification to meet the needs of clients, investors and local communities.
About Buenavista Equity Partners (www.buenavistaequity.com)
Buenavista Equity Partners is an independent asset manager founded in 1996, operating in the middle-market segment. It currently manages over €1.2 billion across various vehicles in Private Equity, Infrastructure, and Venture Capital
Rendering of the Ciudad del Aire project in Corredor del Henares
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