A joint venture between Spain's Grupo Lar and France's Primonial has inked a deal with Spanish player Aedas Homes to develop 655 units for the Spanish rental market.
The agreement comprises five build-to-rent turnkey developments on Aedas Homes plots in Valdemoro (Madrid), Mislata and Patraix (Valencia), Alicante, and Hospitalet de Llobregat (Barcelona), representing a total investment of €120 mln.
Miguel Ángel Peña, residential CEO of Grupo Lar, said: 'This agreement marks another significant step forward in our commitment to the residential rental market.
'Since entering this segment in 2019, we have sought to form the right alliances in the market that will allow us to meet demand in the affordable rental market satisfactorily and professionally.
'First with our alliance with Primonial and now, with this agreement with Aedas Homes, we can confirm Grupo Lar’s clear objective of becoming the benchmark in the Spanish rental market, as we already are in other real estate sectors.'
The deal enables the Grupo Lar/ Primonial venture to take another step towards its stated objective of developing 5,000 rental units for long-term management in Spain’s most important cities. The platform is targeting nearly €1 bn in assets under management in total.
David Martínez, CEO of Aedas Homes said: 'This agreement with Grupo Lar and Primonial further consolidates our leading position in the residential development sector and cements our role as an industrial partner for turnkey developments for rental.'
The five developments are scheduled to break ground in the coming months, with delivery from 2022, targeting the middle income segment of the market.
