Global real estate investment manager AEW has bought two build-to-rent (BTR) developments in Spain on behalf of an unnamed German pension fund.

The €72.8bn manager has agreed to forward purchase the developments that will deliver 206 apartments in the Moreras district of Valencia on behalf of the separate account mandate.

Financial details were undisclosed.

AEW said the assets are scheduled for delivery in 2023 and will comprise 23,400sqm across the two buildings.

Lars-Henning Pylla, fund manager at AEW, said: “This is our second residential forward purchase agreement in Spain on behalf of this client and is in line with our strategy to invest in future-oriented opportunities in Europe’s top-tier cities.

“Occupancy in this district of Valencia remains high with limited supply in the local rental sector and we are confident that this development will provide much needed above-market quality and modern homes.”

Carsten Czarnetzki, head of Spain at AEW, said: “We are pleased to grow our partnership with renowned developer Metrovacesca, with whom we are developing a further two BTR schemes in Palma de Mallorca.

“It is an exciting time to enter the Moreras submarket, which is still in the early stage of consolidation and this scheme will benefit from the significant amount of urban regeneration in the area.”

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