Spanish residential developer Neinor Homes has sold a 146-unit BTR asset to a joint venture consisting of Harrison Street and DeA Capital for an undisclosed price.
Neinor will continue to manage the asset for one year through its subsidiary Renta Garantizada.
Fully completed in Q2 2023, Soto Rental Homes consists of two identical buildings with 30 lofts, 68 two-bedroom and 48 three-bedroom apartments, while amenities include a swimming pool and vertical gardens, a state-of-the-art gym, dedicated playground areas and a gastrobar for tenants.
The asset is located in San Sebastian de los Reyes with metro connection, only 1o min from the Barajas international airport and close to the Hospital Universitario Infanta Sofia, retail assets such as the Plaza Norte Shopping Centre or The Style Outlet, the business park of Arroyo de la Vega and the European University.
The sustainable property fulfills the EU Taxonomy criteria, has been assigned an EPC A label and should be awarded the BREEAM in use rating once operational.
Savills acted as an advisor to Neinor in this transaction.
Europa Homes is the fourth BTR sale executed this year with 598 units for more than €150 mn to both institutional investors and family offices.
They include Hacienda Homes (146#), Lyra (93#), Sky Homes (213#) and Europa Homes (146#), representing around 25% of Neinor’s total BTR portfolio.
Borja García-Egotxeaga, Neinor Homes CEO commented: ‘Between 2018 and 2022 investment volumes in the Spanish living sector stood at €16bn, representing only 4% of total volumes in Europe. Today, we are witnessing a change in this trend as investors look for markets with higher yields, higher rental growth potential and ultimately their focus is on newly built energy efficient assets that have lower maintenance capex, higher margins and cash flow generation. Europa Homes ticks all these boxes and we are very confident that it will deliver a superior commercialization and operational performance to its investors.’
Jordi Argemí, Neinor Homes’ deputy CEO and CFO, commented: ‘Neinor continues to systematically deliver and sell assets at GAV while trading at significant discounts to its appraisal value. To narrow down discounts, Neinor approved a 5-year shareholder remuneration plan of €600 mln that represents around 90% of the current market capitalization offering one of the highest and cheapest dividend yields in Spain and within the European real estate sector.’
