Neinor Homes (Neinor) and Urbanitae have agreed to create a JV to invest up to €150m in the Spanish BTS segment in the coming 18-months.
Urbanitae will hold an 80% stake in the JV, while Neinor has the remaining 20% and act as delivery partner manager overseeing the project design, licensing, commercialization, and construction. As part of the agreement both parties are already analysing different investment opportunities.
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 pursuing equity-efficient acquisitions. Between 2023 and 2027, Neinor expects to invest c. €1b in new land acquisitions, of which €500m are expected to come from new equity partners. The JV signed with Urbanitae is the third vehicle closed by Neinor in a period of just 7- months and represents a 60% achievement vs the 5Y objective of €500m.
Borja García-Egotxeaga, Neinor Homes’ CEO commented that: “We are extremely pleased to have signed this agreement with Urbanitae and we are looking forward to a longstanding and successful partnership. Moreover, in a short period of time, we have been able to raise €300m for our recently created JV business strengthening Neinor’s investment capacity with a significant firepower to deploy over the coming quarters. Meanwhile, the Spanish market has continued to show its strength and resilience consolidating its positioning as one of the safest residential markets worldwide.”
Jordi Argemi, Neinor’s Deputy CEO and CFO says: “As we have thoroughly explained during 1H23 results, in a short period of time, we have shown a solid execution across the three main value drivers of our business plan, being the crystallization of Neinor’s BTR portfolio, equity efficient growth through JV’s and increasing visibility over forthcoming dividend payments. This solid execution attests credibility and rigour to the strategic plan announced earlier this year, in line, with what this management team has achieved over the last 5 years.
Diego Bestard, Urbanitae’s Founder and CEO said: "We are delighted to walk this path with Neinor. From its inception, Urbanitae has had the goal of becoming a serious player in the alternative investing and financing space for real estate developers while at the same time, giving access to institutional-grade investments to small and medium sized investors. With over €200mn funded and +100 developments in our portfolio, we can confidently say we have achieved our goal. This JV with the leading developer in the Spanish market is proof that Urbanitae is a viable investing and financing solution for all types of developers."
Image source - Pexels.
