Spain's Neinor Homes has sold its first Build-to-Rent (BtR) development, a 146-unit scheme in Malaga, to a German investment manager.
Neinor Homes will continue to manage the asset through Renta Garantizada, its operating company, which manages more than 4,000 apartments across Spain.
Hacienda Homes has been designed as a 'smart' rental product, connecting the development's services to the tenant via Neinor Homes’ own proprietary app. Tenants can reserve one of the co-working rooms, gourmet services, rent one of the available electric cars, pay monthly bills, review previous invoices and request technical assistance via their phones.
From an energy standpoint, Hacienda Homes has a ‘Good’ rating from BREEAM and has an EPC rating of BA.
Borja García-Egotxeaga, Neinor Homes CEO commented: 'This sale represents an important corporate milestone as it is a clear demonstration of the value of Neinor's rental platform on which we continue to work and negotiate with other investors.
'Additionally, it assumes relevance in the current macroeconomic context where, since March, the investment market has been almost paralyzed, and no relevant transactions have been closed in the residential sector.
'This is further proof that Spain is today in a radically different situation from other European countries as a result of the structural adjustment carried out over the last 15 years, both due to the scarcity of product and to the low level of indebtedness.'
Hacienda Homes was delivered in December 2021 and now has an occupancy of 97% and a gross rental income of around €1.5 mln. Throughout the year, Neinor has renegotiated almost 10 contracts with an implicit rental growth of 14.5%, demonstrating the business’ future rental growth potential.
As of 30 September 2022, Neinor Rental had 3,861 units in different stages of development with an estimated gross rental income (GRI) of €42 mln and estimated gross asset value (GAV) of €900 mln.
Jordi Argemí, Deputy CEO and CFO said: 'Despite the international macroeconomic context, this transaction has been closed in line with our guidance to capital markets. Furthermore, through this sale, we have been able to maximize the value of our land bank, reaching margins above (+20%) in the traditional build-to-sell business.'
