Aviva Investors and Layetana Living have acquired a second development on behalf of their recently created build-to-rent (BTR) partnership in Spain.
The partnership, established in October last year, has bought the ground-up development in the La Gripia district of Terrassa in Catalonia for an undisclosed sum.
Aviva Investors said the project will provide 85 units across a mix of one, two and three bedrooms as well as amenities, including a swimming pool and an on-site gym.
Construction work is expected to begin in the summer of 2023 and be complete by the fourth quarter of 2024.
Aviva and Spanish developer Layetana created the BTR partnership last year and acquired a 71-unit scheme in the Sants district of Barcelona as the venture’s first asset.
George Fraser-Harding, the head of European funds at Aviva Investors, said: “Spain remains a market we are actively seeking opportunities in, as it continues to display strong fundamentals, complementing our growing European portfolio and focus on delivering an active equity strategy.
“We believe this approach will best serve our investors, with returns which can better reflect the changing risks and structural changes occurring across today’s real estate market.”
James Wells, BTR director at Layetana Living, said: “We are delighted to close what has been a challenging year with this acquisition, our partnership with Aviva Investors continues to flourish and it is very much a signal of our intent that we continue to seek and acquire the best opportunities with strong underlying fundamentals.
“Terrassa has a major under-supply of modern, institutionally managed apartments. We have assessed a number of opportunities in the city and are excited to have identified this site in a consolidated area with excellent transport links to both Terrassa centre and Barcelona.”
Knight Frank advised on the acquisition, with the site being sold by Sareb.
Stuart Osborn, the head of European residential investment transactions at Knight Frank, said: “We are seeing exceptional opportunities in satellite cities like Terrassa where demand clearly outstrips supply for quality rental product.
“The Spanish BTR market continues to offer excellent fundamentals and a positive growth story based on which investors can confidently underwrite long-term, solid business plans.”
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