Meridia Buys Madrid Flex Living Asset

Meridia has significantly expanded its footprint in Spain's dynamic living sector with the acquisition of a substantial, recently completed purpose-built residential asset in Madrid's Carabanchel district. This strategic move underscores Meridia's confidence in the enduring strength of the Spanish residential market, driven by persistent housing shortages, ongoing urbanization, and evolving tenant preferences for professionally managed, flexible accommodations.

The newly acquired property, which commenced operations in April 2025, features 977 fully furnished units spread across more than 30,000 square meters of gross built area. It is designed to cater to contemporary urban living, offering a comprehensive suite of amenities including co-working spaces, a fitness center, swimming pool, rooftop terraces, and communal areas. The asset's development was a collaborative effort by a joint venture comprising Bain Capital, Momentum REIM, and Episode, who have successfully delivered and exited approximately 2,800 units from their initial portfolio and are actively developing a second phase exceeding 2,300 units.

This acquisition aligns perfectly with Meridia's investment thesis, which prioritizes thematic opportunities supported by robust demographic and societal shifts. The company plans to enhance the asset's performance through operational stabilization, revenue optimization, and diligent asset management, all while maintaining a firm commitment to sustainability and resident well-being. The property itself has garnered recognition, achieving BREEAM Outstanding certification and winning the ASPRIMA-SIMA Award for Best Flex Living Initiative in 2026, highlighting its innovation in design, sustainability, and resident services.

Episode, a prominent flex living operator in Spain, will continue to manage the asset, leveraging its proven expertise in delivering exceptional resident experiences and driving operational efficiency. The Carabanchel neighborhood, known for its vibrant cultural scene, provides a strong demographic foundation for the asset's success. This partnership with Episode is seen by Meridia as crucial for maximizing the asset's potential.

Marta de Azlor, Investment Director at Meridia, commented on the transaction, stating, “This acquisition is a pivotal moment in solidifying our presence in the flex living segment, which we view as a key growth area within Spain's residential market. The asset presents a compelling combination of institutional quality, an attractive entry valuation, and significant operational upside. We are eager to collaborate with Episode, whose operational acumen is well-established.”

Rafael Coste Campos, a Partner at Bain Capital, reflected on the venture's success, noting, “This transaction exemplifies our disciplined, full-cycle approach to real estate investment in Europe. Our collaboration with Momentum and Episode has focused on addressing the critical undersupply of quality housing in major Spanish cities. We are confident that Meridia will continue to foster the asset's success as we progress with our subsequent portfolio.” The Spanish living sector, characterized by structural undersupply and increasing demand for flexible living solutions, continues to attract significant institutional interest, with growth rates outpacing broader real estate segments.