Neinor Homes, the Spanish residential developer that has been seeking capital partners for investment opportunities, has revealed it has teamed up with AXA IM Alts to buy a site.
The JV has bought a plot of land in the city of Madrid with planning approval to deliver approximately 250 build-to-sell housing units in two 17-storey buildings.
AXA IM Alts owns a 90% stake in the JV, with Neinor holding the remaining 10% and acting as delivery partner manager overseeing the project design, licensing, commercialization, and construction.
AXA IM Alts and Neinor will continue to explore additional opportunities for investment and development in the Spanish residential market in the coming months.
Alantra acted as sole financial adviser to the JV.
The co-investment strategy plays a key role within the business plan announced in March 2023 as Neinor puts a greater emphasis on its balance sheet optimization while pursuing equity-efficient growth.
Between 2023 and 2027, Neinor expects to invest around €1bn in new land acquisitions of which half are expected to come from new equity partners.
Borja García-Egotxeaga, Neinor Homes’ CEO, said: ‘The Spanish residential market is currently positioned as one of the residential markets worldwide with the lowest “beta” as it has a significant imbalance between demand and supply while leverage is extremely reduced for households, banks and developers.’
‘Neinor recently launched its co-investment business and is very well positioned to take advantage from the growth opportunities we envisage for the Spanish market in a capital efficient manner.’
Mario Lapiedra, Neinor Homes’ CIO, added: ‘In a short period of time we were able to launch this vehicle with one of the most prominent institutional investors worldwide, laying the foundations for Neinor’s co-investment business and equity efficient growth strategy. In the coming months we expect to announce other agreements with renowned partners in both build-to-sell and senior living segments.’
