Aviva Investors and Layetana Living have acquired a new development site on behalf of their recently created build-to-rent (BTR) partnership in Spain.
This latest deal is the fourth scheme acquired by the platform and, when complete, is expected to provide 331 homes through a mix of one, two- and three-bedroom properties, making it Aviva Investors’ largest investment to date through its partnership with Layetana.
It means Aviva Investors has now funded four development schemes across Spain, which together account for more than 720 homes, alongside its 1,200-home UK single-family housing platform.
The development is situated in the Nou Llevant district east of Palma de Mallorca.
Designed to target a BREEAM ‘Excellent’ accreditation and an energy performance certificate rating of AA, the scheme will also have a photovoltaic roof. The development will include a swimming pool, residents lounge, co-working facilities and an onsite gym.
The building will be operated and managed under the Propia brand, with Gestilar retained as project manager. Ashurst and Knight Frank advised on the transaction.
George Fraser-Harding, head of European funds at Aviva Investors, said: “We are pleased to secure our fourth development in the Spanish residential market, which will provide quality rental housing in a market which is chronically undersupplied. Spain remains a market we are actively seeking opportunities in, and it continues to display strong fundamentals. It also complements our growing European portfolio and active equity strategy well, which we think is best-suited to the conditions of today’s real estate market and for delivering long-term performance in our portfolio.”
James Wells, BTR director at Layetana, said: “We are immensely pleased to mark another significant achievement with this project in Palma. Our collaboration with Aviva is strengthening further with each venture, showcasing our shared vision and commitment to seizing exceptional investment opportunities that have robust fundamentals. Palma de Mallorca is experiencing a critical shortage of long-term rental accommodation and we are thrilled to have secured this plot in a well-established consolidated urban area. This development is not just about adding to our portfolio; it’s about redefining the standards of living in Palma and enhancing the urban landscape with a landmark residential offering.”
The parties did not discose the price.
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