Neinor Homes has closed the sale of its flagship Sky Homes residential property in Valencia to Savills Investment Management (Savills IM) for €66 million. The Savills Capital Markets Living team has acted as advisor to the seller in this transaction. As part of the deal, Neinor will continue to manage the property through its asset management subsidiary, Renta Garantizada.
The transaction comprises a total of 209 homes and four commercial premises located in the capital city of Turia. This development is part of a wider plan, in which Neinor has already sold more than 200 BtS units.
The two properties, due for completion in November 2022, are among the four residential towers that make up Sky Homes, a modern and sustainable residential complex located in the Malilla district of Valencia.
This development offers a wide range of services, such as swimming pool, coworking spaces and children's playgrounds. It is located in close proximity to La Fe Hospital, the largest health centre in the Valencian Community, and is very close to a large shopping and entertainment centre, a university, a socio-cultural centre and two private health centres.
The construction of this asset was carried out in compliance with sustainable building standards and has obtained BREEAM "Good" certification, with plans to upgrade it to "Excellent" status in the future. It has also been awarded an EPC A energy label, which is a significant achievement considering that Spain has one of the most demanding EPC rating systems in Europe for multi-family dwellings.
The building is also equipped with aerothermal heat pumps in each unit and charging points for electric vehicles will be installed in the near future, as well as bicycle parking in the underground garage.
Neinor boosts its BtR portfolio
During the course of this year, Neinor has managed to sell three build-to-rent (BtR) developments, totalling 452 units and generating more than EUR 100 million in revenues. These sales were made to both institutional investors and family offices.
The developments sold include Hacienda Homes (146 units), Lyra (93 units) and Sky Homes (213 units), which represent 20% of Neinor's total BtR portfolio.
The realisation of this shareholder value are central elements of the €600 million shareholder remuneration programme announced in March 2023. With this sale, the company has already exceeded its targets for the current year, while continuing advanced negotiations for the sale of other buildings for lease.
Borja García-Egotxeaga, CEO of Neinor Homes said: "The rental market is an emerging asset class in Spain and its strong growth prospects offer a very attractive investment opportunity for both developers and investment managers. Between 2021 and 2026 the number of rental homes is expected to increase by 700,000 units, while the current pipeline of new buildings stands at only 25-30,000 units. Neinor will be responsible for approximately 10% of the total new supply and is poised to take a leading role in the Spanish BtR sector".
