Neinor Homes continues to cash in on its build-to-rent portfolio. The developer has sold a 146-unit residential rental asset to the joint venture owned by Harrison Street and DeA Capital, the company said in a statement.
In addition, as part of the deal, Neinor will continue to manage the asset for the next year through its subsidiary, Renta Garantizada. The transaction has been advised by the consultancy firm Savills.
The asset was delivered at the beginning of 2023 and will be marketed under the name Soto Rental Homes. The asset is located in San Sebastián de los Reyes, a well-established urban area with good metro links, just 10 minutes from Barajas International Airport and close to a wide range of services such as the Infanta Sofía University Hospital; several shopping centres such as Plaza Norte or The Style Outlet; the Arroyo de la Vega business park; and the European University.
The complex is divided into two identical buildings with a total of 146 units, of which 30 are studios, 68 are two-bedroom flats and 48 are three-bedroom apartments. The development has extensive facilities such as a swimming pool, children's play areas and a gastrobar.
So far in 2023, Neinor has sold four build-to-rent developments representing a total of 598 units for over EUR 150 million to both institutional investors and family offices - Hacienda Homes (146 units), Lyra (93 units), Sky Homes (213 units) and Europa Homes (146 units), representing 25% of Neinor's total residential rental portfolio. Unlocking and crystallising this value for shareholders is one of the core elements of the €600 million shareholder remuneration plan communicated to the capital markets in March 2023.
Borja García-Egotxeaga, CEO of Neinor Homes, commented "Between 2018 and 2022, investment volumes in the Spanish residential sector stood at €16 billion, representing only 4% of total volumes in Europe. There is now a shift in this trend as investors look for markets with higher yields, higher rental growth potential and ultimately focus on energy efficient new build assets with lower maintenance costs, higher margins and cash flow generation. Europa Homes meets all of these requirements and we are confident that it will deliver superior operating performance for its investors".
Jordi Argemí, Deputy CEO and CFO, said: "The sale of Europa Homes is the fourth build to rent sale we have executed to date and illustrates and confirms one of the most important messages we highlighted in our strategic plan presentation: Neinor continues to systematically deliver and sell assets at GAV while trading at significant discounts to their appraised value. To reduce the discounts, Neinor has approved a 5-year shareholder remuneration plan of EUR 600 million representing c.90% of current market capitalisation and offering one of the highest and cheapest dividend yields in Spain and within the European real estate sector".
