October 15, 2026

A&G and Hines sign agreement to drive the transformation of an office building in Madrid into a flexible accommodation complex with an educational component

Alternative Investments

The project will represent a total investment of €75 million to transform an obsolete commercial asset into a sustainable accommodation asset with approximately 400 beds.

A&G, a firm specialising in global financial services, and Hines, a global real assets investment manager, have reached an agreement to work together on the transformation of a currently vacant office building located in Pozuelo de Alarcón (Madrid). The project involves the comprehensive refurbishment of the property, including structural reinforcement and expansion works, to develop a flexible accommodation asset.

The transaction will represent an investment of approximately €75 million and will be developed under a public-private partnership structure, implemented through two funds managed by A&G, which will commit approximately €30 million of the investment, with Hines participating as a minority co-investor and delegated manager. Through its A&G Real Estate Sustainable Developments SICC S.A. vehicle, A&G will contribute €15 million to the transaction, drawing on resources from the Regional Resilience Fund (RRF), managed by the European Investment Bank (EIB) and financed with NextGenerationEU funds under Spain’s Recovery, Transformation and Resilience Plan.

The asset is located in the Cerro de los Gamos business park, close to the A-6 corridor, the future TAI University campus, El Corte Inglés in Pozuelo and El Barrial commuter rail station. Although the project is currently in the design phase, the future asset is expected to comprise approximately 400 beds and a range of communal spaces.

Urban regeneration and responding to accommodation demand

Located in one of the most dynamic areas of northwest Madrid, the complex will undergo a comprehensive refurbishment that is expected to retain the main structure while expanding its floor area. It aims to offer approximately 400 accommodation units comprising studios, twodios and equipped double rooms for short-, medium- and long-term stays.

The development is expected to reflect a value creation approach, featuring a significant proportion of communal areas, including coworking and study spaces, a gym, swimming pool, pickleball courts, cinema and music rooms, a food and beverage area and landscaped outdoor spaces.

The project plans to help address the significant shortage of flexible accommodation across the Madrid metropolitan area and the northwest of the city, with a potential demand base of more than 30,000 university students within a 30-minute radius (Pozuelo, Majadahonda, Moncloa and La Finca).

Vanessa Gelado, Head of Southern Europe at Hines, said: “This agreement provides an opportunity to transform an existing asset that is currently unused, adapting it to new needs and giving it a new lease of life. The conversion of existing buildings allows us to approach the built environment from a different perspective, identifying opportunities to evolve their uses and unlock their potential. Hines has a strong conviction in purpose-built student living in our preferred markets, where growing demand and limited supply could create compelling opportunities. Together with A&G, we aim to develop a high-quality flexible living project capable of meeting the needs of different profiles and fully integrated into its surroundings.”

Jaime Trigo, Managing Director Real Estate at A&G, said: “This project faithfully reflects the spirit of our mandate: transforming obsolete urban commercial assets to address structural demand for high-quality accommodation while generating a positive and comprehensive impact. Our ability to bring together public capital and A&G’s private co-investment in a single vehicle, alongside an international partner of Hines’ standing, demonstrates the effectiveness of our platform in mobilising institutional investment to the highest sustainability standards.”

Evergreen acted as legal adviser to A&G on the transaction, while Linklaters advised the Hines team. Ontier acted as legal adviser on the closing, and EY acted as tax adviser. Valladares and Morph participated as technical advisers, while Savills acted as commercial adviser.