Spanish residential property developer Neinor Homes has partnered with financial institution Banco Santander to invest over €60m to build apartments in Madrid.
The listed property firm will contribute land plot for the development and hold a 10% stake in the partnership. Santander’s alternative investment arm will own the remaining 90% of the venture, which aims to develop 160 ‘flex living’ apartments.
The 9,500sqm project in the Las Mercedes, scheduled to be delivered in 2028, will comprise one-bedroom apartments.
The flex living concept, which often involves shorter-term contracts, offers a wider range of services than traditional rental accommodations. These services may include amenities such as coworking spaces, gyms, swimming pools and event rooms, as well as services like Wi-Fi, utilities, cleaning and maintenance.
Borja García-Egotxeaga, Neinor Homes CEO, said: “We are extremely proud that one of the largest financial institutions worldwide has trusted Neinor Homes as industrial partner to develop much needed housing supply in the Spanish market.
“Furthermore, I would like to add that we will continue to work alongside Santander to grow this partnership in the coming years.”
Jordi Argemí, Neinor Homes’ deputy CEO and CFO, said: “The emerging living asset classes represent a huge opportunity for Neinor Homes to continue to grow our platform in the coming years.
“Thanks to Neinor’s joint venture model, where we take minority stakes and act as development partner, we can approach these opportunities in an asset-light manner and generate attractive returns to both our shareholders and co-investors.”
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