Värde Partners is taking over the investment management of €800m of residential development assets owned by Spain’s ‘bad bank’ Sareb.

The alternative investment firm will also acquire a 10% stake in Bank Asset Fund, a vehicle set up to hold the assets.

The assets will be managed and developed by Aelca, a Spanish residential developer and asset manager owned by Värde.

Francisco Milone, partner and head of European real estate at Värde Partners, said the mandate was won after a competitive evaluation process.

“We believe this underscores the remarkable quality of the Aelca platform and our team in Spain,” he said.

“We look forward to establishing a long-term partnership with Sareb and converting these assets into thousands of homes across Spain.”

In January 2019, Värde-owned Via Célere acquired the land bank assets of Aelca, making Via Célere one of the largest residential developers in Spain with a gross asset value of more than €2.2bn. Aelca continues to operate as an independent residential developer and manager.