Spanish residential platform Neinor Homes plans to invest over €1 bn to pursue growth opportunities in its home market.
To this end, Neinor is launching a new co-investment business line for build-to-sell, build-to-rent and senior living that will allow it to continue to optimize its balance sheet while improving returns.
The company is already under discussions with several investors to create different vehicles for BTS, BTR and Senior Living and expects to materialize this process throughout the year.
Borja García-Egotxeaga CEO of Neinor Homes, commented: ‘We are delighted to announce the launch of our co-investment model. This will enable investors to partner with Neinor, the leading residential provider in Spain, to enhance the Company’s growth trajectory in a capital-efficient way and see a significant uplift in our return on equity. Spain has one of the lowest ratios of new supply per capita worldwide since the GFC and with mortgage data showing a more sustainable demand environment, Spain today is one of the markets with the best fundamentals worldwide. We intend to leverage this position and drive significantly enhanced returns for investors in our new business model as well as our shareholders.’
Jordi Argemí, deputy CEO and CFO of the Group said: ‘In the last five years, the company has executed and delivered on its business plan both operationally and financially despite a pandemic, the war in Ukraine, inflation and an unprecedented global rate hike. Additionally, the fundamentals of the Spanish residential sector remain intact. However capital markets have failed to recognize these facts. In this context, Neinor will optimise its balance sheet and increase its shareholder returns.’
The Board of Neinor Homes also approved the distribution of €600 mln in dividends, of which €450 mln in the next three years.
Neinor Homes has a land bank to develop around 15,500 homes in Spain and a gross asset value as of December 2022 of €1.7bn.
Since 2019 Neinor Homes has delivered 8,671 homes (+11%) and is the most profitable Spanish residential developer with €344 mln in net profit (+23%).
The company was also acknowledged by Sustainalytics as the world's lowest ESG risk developer for two years in a row.
