Barings, the real estate investment manager, and Spanish real estate group, Salas, have acquired two build-to-sell (BTS) assets in the greater Barcelona region in the first deals for a JV partnership that might grow to in excess of €100 mln.
The investors said they will target further opportunities in Madrid and Barcelona in both the build-to-rent (BTR) and BTS sectors, with an initial aspiration of investing €100 mln-plus with potential to develop more than 600 units. Barings will invest on behalf of a mandate with a US investor, whose identity has not been public.
Salas has delivered over 4,000 units over 30 years. It is tasked with managing the full development process through its 270-strong team.
The two initial schemes in Barcelona will comprise 85 units in total, with one refurbishment and extension in Terrassa made up of 41 units, and one new built asset in Tiana of 44 units. The partners will target maximum EPC A.
José Carlos Torres, MD and country head, Iberia, at Barings Real Estate, said demand for high quality, modern, energy efficient new homes in Spain’s two major metropolitan areas was 'enormous'. The company is also invested in the logistics sector.
'Forming joint ventures with experienced and well-respected developers in the living and logistics sectors is one of our preferred ways of working.'
Gunther Deutsch, MD and head of European transactions, believes the living sector to be one of Europe’s most attractive growth areas.
He added: 'It is expected that Spain has demand for 217,000 new households per year going forward, with the majority in the Madrid and Barcelona provinces, where supply represents less than 50% of the demand. Besides this strategy, we are looking to deploy capital across the living – whether that’s for BTR, BTS or purpose-built student accommodation – and logistics sectors in our core markets across Europe, such as Iberia, the UK, France, the Netherlands, Italy, Germany and the Nordics.'
Manel Rodríguez Murillo, CEO of Salas, said: 'This partnership with Barings is a significant step forward for Salas, enhancing its capabilities to satisfy the growing housing demand for rent and for sale. We wish this alliance with Barings will be long lasting and will allow us to continue leading the development of new homes based in quality, sustainability and innovation.'
