Neinor and Octopus Real Estate have announced the formation of a joint venture to develop housing projects in Spain aimed at the independent senior living segment, the developer led by Borja García-Egotxeaga has informed the Spanish stock market (CNMV). This partnership, announced on 28 March 2023 as part of the Company's strategic plan for the period 2023-2027, contemplates an initial investment of approximately 200 million euros.
In this partnership, Octopus will own 80% of the joint venture, while Neinor will hold 20%. Neinor will also play the role of delivery partner manager, overseeing the design, licensing, marketing and construction of the projects. Upon completion of the property developments, the assets will be managed by a company comprising Octopus and Neinor, maintaining the same 80% and 20% shareholding distribution, respectively.
Neinor: €1 billion to invest and search for partners
The developer already anticipated a favourable environment for the real estate sector during 2024 and 2025, supported by strong demand and a limited supply of new construction. This dynamic, together with the low level of indebtedness of Spanish households, has strengthened the construction sector despite rising interest rates and high macroeconomic uncertainty.
In this context, Neinor plans to intensify its investments over the next two years to foster its sustained growth in capital. According to its business plan for the period 2023-2027, the company is projecting a total investment of 1 billion euros. Half of this amount will be allocated to joint projects with new strategic partners and through its co-investment division. So far, and prior to its agreement with Octopus, Neinor has established co-investment agreements totalling €300 million, which represents 60% of its five-year target.