Pan-European private equity real estate manager DFI has secured a €200m loan from JP Morgan against Niding, its Spanish residential rental homes platform, replacing and increasing an existing 2021 facility.
The new loan extends the term by another five years while lowering the cost of debt. The loan will allow DFI to capture value already created in the portfolio while returning a significant part of the equity to investors, the firm said.
The portfolio comprises around 2,900 affordable rental homes across the Comunidad de Madrid, Andalusia, Comunidad Valenciana and Catalonia. DFI, alongside local operating partner BRIKS Real Estate, assembled the platform between 2020 and 2023 through 12 transactions.
DFI and BRIKS have grown the platform’s rental income since acquisition to around €500 per unit per month and invested significant capex in refurbishing the properties to bring them up to institutional leasing quality, improve occupancy and deliver a better product for residents.
Juan Gómez Vega, managing director and head of Southern Europe at DFI, said: “The new €200m loan from JP Morgan reaffirms the trust of our existing lender, allowing us to capture part of the value we have created through investment and asset management, and to return this to our investors. Spain’s major urban areas remain structurally undersupplied for residential accommodation as their populations grow and we are actively executing strategies to invest in the sector to both help bring forward good quality new supply while creating value for our investors.”
Pablo Escribano, head of acquisitions at BRIKS, said: “This milestone further validates our strategy of generating value through institutional management while actively contributing to improve housing supply and help address the persistent structural supply imbalance in the Spanish residential market.”
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