Aviva Investors and Layetana Living’s build-to-rent (BTR) partnership in Spain has made its third investment through a forward-purchase transaction in Madrid.
Aviva Investors said the partnership is acquiring a 234-unit residential development in Valdebebas from developer Via Agora for an unspecified amount.
Via Agora will act as both developer and contractor for the scheme that will comprise a mix of one, two and three-bedroom apartments.
George Fraser-Harding, the head of European funds at Aviva Investors, said: “Spanish build-to-rent is still in its infancy, making the ability to move with agility as a first-mover and secure a high-quality development pipeline, even more important. Valdebebas is home to a young, dynamic population, which we think positions it well for future demand and growth.
“Importantly, it also expands our build-to-rent platform beyond our existing schemes in the Barcelona region and should bring strong long-term benefits to the portfolio.”
James Wells, BTR director at Layetana, said: “Valdebebas is probably the most successful new sector in Madrid in the last 20 years, so it is an important moment for our platform that we can now include this location in the portfolio.
“With ongoing market uncertainty, we consider this to be a strong signal of intent that we are prepared to continue to acquire projects which offer the required core fundamentals.”
Back in January, the Aviva and Layetana partnership – established in October last year – announced its second development, acquiring a ground-up development in the La Gripia district of Terrassa in Catalonia for an undisclosed sum.
At the time of the partnership’s formation, the pair said they intend to build a residential portfolio of over €500m as they target both ”development and forward acquisition projects across major cities in Spain, with a core base in Madrid and Barcelona”.
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