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Metrovacesa sells 121 houses to Ares
13 May 2019 | Vanessa Sousa

During the first quarter of 2019, Metrovacesa, the leading real estate company in Spain, sold 121 new houses to funds managed by a subsidiary from Ares Management Corporation, the leading global alternative assets management company.

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This operation, worth 29 million euro, is the first key in hand housing operation carried out by Metrovacesa.

With this operation, Metrovacesa will promote and develop the houses, which will then be acquired and managed for rental by Ares. In this way, Metrovacesa meets the growing demand for new houses for rental, thanks to its expertise in housing development. Furthermore, the operation improves Metrocavesa’s cash-flow and EBITDA.

The houses included in this portfolio are part of two housing developments located at Arganda del Rey and Madrid, and are estimated to be delivered in the last quarters of 2020 and 2021, respectively.

 

Meeting a growing demand

Operators specialised in renting are becoming a target for developers with high quality assets and the ability to develop big key in hand projects, as is the case of Metrocavesa.

Although it is cheaper to buy a house than it is to rent it, the perception concerning purchasing and rental prices, supports the high demand for rented houses in Spain. This translates into a growing interest from operators and developers for key in hand housing projects for subsequent rental.

Quoting Jorge Pérez de Leza, Metrovacesa’s CEO, «this first key in hand sales operation, shows Metrocavesa’s ability to open new distribution channels in tandem with our strategic plan. Our range, housing product quality and experience in real estate development, allows us to offer a perfect mix and the best guarantees to funds which require key in hand».

 

Press Released by Metrovacesa