Spanish property developer and investor Neinor Homes has announced the acquisition of a portfolio of 391 rental apartments in Spain in an off-market deal worth around €58 mln.
The package was bought from Hadley Investment Socimi, a Spanish REIT controlled by private equity firm TPG Capital.
Built in 2007-2009, the apartments are spread across the country, located in Madrid (39%), Catalunya (29%), Valencia (15%), Alicante (9%) and Málaga (7%).
The acquisition represents Neinor’s first investment in the private rented sector, the buyer said in a statement.
The deal follows the creation by Neinor of a new rental unit known as Neinor Rental as well as the purchase in late 2020 of a 75% stake in rental home firm Renta Garantizada, the manager of 2,500 residential units.
Neinor said that it aims to reach a portfolio of 5,000 rental homes by 2025.
‘This purchase allows us to add value to the portfolio of 1,200 units currently under development, as it provides great visibility on the future profitability that we will achieve with these assets,’ said Borja García-Egotxeaga, CEO of Neinor Homes.
Jordi Argemí, deputy CEO and chief financial officer of Neinor Homes, added: ‘Following the recent acquisition of Renta Garantizada, the purchase of this PRS portfolio represents a new step forward in the execution of Neinor Rental's strategy. There is clear potential for income growth that underpins the thesis of this investment, as it fits perfectly into our NAV growth and value-added strategy. Furthermore, the 5% net profitability that we expect to achieve would be equivalent to our target set for the portfolio of 1,200 units that we currently have under development.’
The vendor was advised by agent CBRE.
