Spanish housebuilder Aedas Homes and King Street Capital Management have partnered up to invest up to €270m in residential developments.

The real estate arm of King Street will own a majority stake in the venture that aims to complete and develop homes for sale to the mid and high segments of Spanish markets.

The partnership is launching with a €150m investment in existing Aedas Homes projects across six cities: Madrid, Barcelona, Málaga, Alicante, Valencia and Tenerife. The projects involve around 700 homes.

The partnership also aims to invest an additional €120m in new residential projects. Altogether, the developments could generate €900m in revenue.

In addition to holding a stake in the venture, Aedas will provide development management services for all the projects, from design and marketing to construction and delivery to customers.

David Martínez, CEO of Aedas Homes, said: “This agreement advances our strategy of developing projects leveraging on third-party capital, which we have been doing for years.

“Over the past three years, Aedas Homes has delivered over 1,200 homes through projects with family offices and institutional investors and is currently developing another 3,600 units for third parties.”

Martínez said the partnership with King Street would allow the company to diversify its sources of capital, further scale its activities and generate value for shareholders. 

Paul Brennan, partner and co-head of real estate at King Street, said: “We are pleased to partner with Aedas Homes to continue growing King Street’s global real estate footprint through this residential joint venture.

“The Spanish residential-for-sale market continues to demonstrate resilience and we are excited to partner with the leading homebuilder in Spain in this new venture. We look forward to expanding our partnership with Aedas Homes through continued opportunities across Spain’s housing market.”

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