Santander has distinguished itself through a sophisticated and highly deliberate expansion of its alternative investment capabilities. The bank has demonstrated an ability to deliver institutional-grade investment opportunities to its clients while navigating a challenging macroeconomic environment.
Arguably the most visible demonstration of this momentum can be seen in the real estate sector, where Santander Private Real Estate Advisory (SPREA) has executed an aggressive acquisition strategy across the Iberian peninsula. Acting on behalf of its high-net-worth clients, SPREA completed the acquisition of the Ballonti shopping centre in Portugalete, near Bilbao, for approximately €80 million in mid-2025. This deal marked the division’s third major retail acquisition in under a year, following the purchases of Moraleja Green in Madrid and a significant stake in Madrid Xanadú, one of Spain’s largest retail destinations. By partnering with the specialist manager Rivoli, SPREA also provided its clients with access to prime, income-generating assets that would typically be the preserve of large institutional funds.
SPREA has been equally active in the residential development space, forging a landmark partnership with global investment manager Invesco. In late 2025, the two firms, alongside developer Culmia, announced a €100 million joint venture to develop Culmia Virere Aqua, a luxury residential project comprising 73 high-end homes in Madrid’s exclusive Valdebebas neighbourhood. This transaction, the first between SPREA and Invesco Real Estate, saw Santander channel client capital into the forward funding of the development, tapping into the strong demand for prime housing in the Spanish capital.
Sustainable and liquid private investments
Beyond its direct real estate plays, Santander has focused on broadening access to private markets through structural innovation. Recognising that traditional closed-end funds can be ill-suited to the liquidity needs of private banking clients, the bank launched a series of innovative evergreen private market vehicles in the first half of 2025. These open-ended structures are designed to provide greater liquidity and smoother risk profiles, making allocations to private assets more palatable for portfolio construction. This product development was deepened by the rollout of the Priva feeder structures, an initiative positioning Santander as the sole global distributor for select, tier-one private credit programmes. By using a master-feeder architecture, Santander can aggregate capital from its European client base to access top-tier global funds that would otherwise have prohibitive minimum investment thresholds.
By embedding alternatives at the core of portfolio construction and leveraging the scale of the Santander Group, Santander Private Banking is building one of the most dynamic and innovative private markets platforms in Europe
Alfonso Castillo
Alfonso Castillo, global head of Santander Private Banking, says: “By embedding alternatives at the core of portfolio construction and leveraging the scale of the Santander Group, Santander Private Banking is building one of the most dynamic and innovative private markets platforms in Europe.”
To ensure that this surge in complex product offerings is met with appropriate governance, Santander has embedded private assets directly into its advisory and discretionary mandates. The bank’s Global Private Assets Programme, an internal education initiative launched in 2024, has already trained more than 300 private bankers across Europe by mid-2025. The programme focuses on due diligence, suitability controls and risk governance, ensuring that client-facing teams possess the expertise to manage the complexities of illiquid investments.
The bank has also systematically woven sustainability into its European alternative investment framework. By mid-2025, ESG criteria had become a mandatory component of fund selection and product design. This commitment is reflected in the success of its co-living real estate and infrastructure strategies, which are marketed not only for their financial returns but also as contributors to sustainable urban development. The creation of a dedicated principal adverse impacts working group further institutionalised this approach, tasked with monitoring sustainability risks across the portfolio, including within alternative investments.
