Neinor Homes (Neinor) has sold a 146-unit BTR property (Asset) to a joint venture co-owned by Harrison Street and DeA Capital. However, as per the agreement, Neinor will retain the management of the asset over the next year through its operating company (OpCo).
The Asset was fully completed in Q2 2023 and will be commercialized under the name Soto Rental Homes. The Asset is located in San Sebastian de los Reyes with excellent accessibility by metro and the Barajas international airport as well as Hospital Universitario Infanta Sofia, Plaza Norte Shopping Centre, The Style Outlet, and the business park of Arroyo de la Vega or the European University.
The modern complex is divided into two identical buildings with a total of 146 units, of which 30 lofts, 68 two-bedroom and 48 three-bedroom apartments. The Amenities include a swimming pool, vertical gardens, a state-of-the-art gym, dedicated playground areas, and a gastrobar for tenants to use.
The asset was developed with sustainable building standards in mind fulfilling the strict criteria of the EU Taxonomy and has been assigned an EPC A label. Furthermore, the asset is expected to be awarded the prestigious BREEAM® in-use rating once it starts to be operated.
Borja García-Egotxeaga, Neinor Homes CEO commented: “Between 2018 and 2022 investment volumes in the Spanish living sector stood at €16bn, representing only 4% of total volumes in Europe. Today, we are witnessing a change in this trend as investors look for markets with higher yields, and higher rental growth potential and ultimately their focus is on newly built energy-efficient assets that have lower maintenance capex, higher margins and cash flow generation. Europa Homes ticks all these boxes and we are very confident that it will deliver a superior commercialization and operational performance to its investors.”
Jordi Argemí, Neinor Homes Deputy CEO and Chief Financial Officer, commented: “The sale of Europa Homes is the fourth BTR sale we executed YTD and it illustrates and corroborates one of the most important messages we highlighted in our strategic update: Neinor continues to systematically deliver and sell assets at GAV while trading at significant discounts to its appraisal value. To narrow down discounts, Neinor approved a 5-Year shareholder remuneration plan of €600mn that represents c.90% of the current market capitalization offering one of the highest and cheapest dividend yields in Spain and within the European Real Estate sector.”
Savills acted as an advisor to Neinor in this transaction.
