French asset management giant Primonial is reportedly joining forces with Spanish construction and property group Lar to invest up to €350 mln in the Spanish build-to-rent sector.
According to Spanish press reports, Grupo Lar and Primonial are due to sign a partnership agreement over the next couple of weeks that would see the French asset manager co-invest in Grupo Lar’s newly-launched rental platform.
Grupo Lar had been looking for an international partner to help build up its residential arm which is forecast to own a portfolio of 5,000 units by 2025, for a total investment estimated at €1 bn over the next five years.
The operation would be the first major investment by Primonial in Spain, where the French asset manager has only carried out minor investment activities so far.
Grupo Lar did not respond to a request for comment.
The investment programme would be part of Primonial’s plans to diversify the portfolio further and roll out a housing investment strategy across Europe. Primonial made its first meaningful acquisition in the sector in 2017 with the purchase of a €430 mln portfolio in Marseille from listed firm ANF Immobilier. It recently said it is targeting a €4 bn housing portfolio across Europe and launched its first European residential fund.
Primonial declined to comment.
