Spanish residential developer Neinor Homes and global investment firm Avenue Capital have created a joint venture to invest €35 mln in the development of 700 homes for sale in Lomas del Flamenco, in Mijas.
Neinor will hold a 20% stake in the joint venture with Avenue Capital owning the remaining 80%. As part of the JV, Neinor will act as delivery partner, overseeing the project design, commercialisation, licensing, funding and construction. This agreement does not consider further land acquisitions.
The asset, called Lomas de Flamenco, has a ready-to-build status and Neinor is currently completing the urban infrastructure works, which are expected to be finalised by the year-end. The asset is located only a 25-minute drive from Malaga’s international airport, 35 minutes from Marbella and 15 minutes from Fuengirola.
As part of its strategic plan (2023-27), Neinor expects to deploy €1 bn in new land investments through to 2027.
Some €500 mln of this €1 bn is targeted to be committed by new strategic partners under joint venture structures with Neinor taking minority stakes.
Since June 2023, Neinor has signed three build-to-sell (BTS) agreements with renowned investors such as AXA IM Alts, Orion Capital and Urbanitae raising €300 mln. From these, Neinor has already acquired 4 land plots comprising nearly 1,000 housing units located in Madrid, Barcelona, Malaga and Alicante for a total investment of €100 mln.
In July 2024, Neinor signed a fourth agreement with Octopus Real Estate to invest €200 mln in the Independent Senior Living sector, reaching its 5-year target of €500 mln in assets under management in just over one year. With the agreement with Avenue, Neinor has now exceeded its 5-year target.
Borja García-Egotxeaga, Neinor Homes CEO, commented: 'This agreement further confirms the growth potential and scalability of Neinor’s joint venture model.
'In just over one year, we have already exceeded our 5-year target of €500mn assets under management, and we are continuing to work on our JV model to provide further visibility on Neinor’s equity efficient growth strategy.'
Jordi Argemí, Neinor Homes’ deputy CEO and chief financial officer, added: 'This agreement marks another breakthrough in the execution of our strategic plan as we were able to acquire an equity stake in an asset owned by a financial investor and leverage on Neinor’s operational and execution capacity to develop 700 new homes.
'With this acquisition, we are able to deploy capital immediately and thus accelerate execution. It’s a win-win proposition for both parties.'
