The strategy, which seeks to take advantage of Spain's economic growth, focuses on the construction of residential housing complexes and the conversion of existing properties to residential real estate in Madrid and Barcelona.

It is targeting a total return of 155 per cent to 175 per cent after local taxes and costs by the end of its investment term in 2019.

According to Eurostat data, the Spanish economy is currently growing at around 3.1 per cent per year, which Aquila noted is significantly stronger than the European average. The firm highlighted that Spain has the highest apartment ownership rate in Europe at over 80 per cent and that the improved investment environment has seen transactions in residential properties climb around 9.6 per cent on a yearly basis as of the first quarter of 2015.

“The combination of an economic upswing and improved access to bank financing, is making Spain’s real estate market more attractive to foreign direct investors and strengthens the domestic demand for residential property,” said Rolf Zarnekow, head of real estate at Aquila Capital. 

“Our new strategy offers institutional investors access to one of the most attractive real estate investment opportunities in Europe,” added Roman Rosslenbroich, chief executive and co-founder of Aquila Group.