Savills Investment Management has bought two properties in Spain for €66m on behalf of its European living platform.

The manager has acquired two Skyhomes towers in Valencia from Spanish developer Neinor Homes. The two properties, with total of 209 residential units, are part of the four residential towers that make up the SkyHomes residential asset located in the Malilla neighbourhood of Valencia.

Fernando Ramírez de Haro, managing director of Savills Investment Management for Spain and Portugal, said: “The addition of these assets to our portfolio will strengthen our position in the build-to-rent segment, which offers very compelling growth opportunities thanks to the gap between supply and demand in the market.”

Marc Gonzalvez, responsible for pan-European residential acquisitions at Savills Investment Management, said: “This new acquisition provides another illustration of our ability to secure high-quality residential assets off market. Whilst traditionally a homeowner’s market, Spain’s residential landscape is evolving rapidly towards rental.

“Entering this market now enables us to benefit from a significant price discount compared to other countries like Germany or France, despite having as strong if not stronger fundamentals for rental housing.”

The transaction represents the second round of acquisitions for the European living platform following the acquisition of a portfolio of six fully-leased assets in Sweden from developer K2A Knaust & Andersson Fastigheter for €100m back in April.

Patrick Au Yeung, senior fund manager, European living, Savills Investment Management, said: “This second round of transactions for our European living platform represents a great opportunity to acquire a quality residential asset in the third largest Spanish city, at attractive pricing compared to other similar developments in the area. There has been strong rental growth in Valencia in recent years, as well as in the wider Spanish market which has firmly established renter demand.

“We see similar supportive demographic and economic fundamentals across Europe and have a strong pipeline of opportunities for the platform over the coming months to further support our investors and stakeholders.”

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