Neinor Homes has sold Sky Homes to Savills IM for c.€66m. In this transaction, Savills Capital Markets Living Team acted as an advisor to the seller. Furthermore, as part of the agreement, Neinor will continue to manage the asset through its asset management subsidiary, Renta Garantizada. The indirect sale of the two properties located in Valencia has a total of 209 apartments and 4 retail units. This development is part of a bigger scheme where Neinor has successfully sold more than 200 units in its core build-to-sell business.
Completed in November 2022, the two properties are part of the four residential towers that make up Sky Homes, a highly sustainable and modern standing residential asset located in the Malilla neighbourhood of Valencia. The development offers comprehensive amenities, including a swimming pool, coworking space and playgrounds. The site is adjacent to La Fe Hospital, the largest and most reputable hospital in the Valencia region, and within close proximity to a large shopping/entertainment centre, university, socio-cultural centre and two private health centres.
The asset was developed with sustainable building standards in mind and has been awarded a BREEAM “Good” Certificate, with plans to upgrade this to an ‘Excellent’ rating in the future. It has also been assigned an EPC A label, a great achievement considering Spain has one of the most restrictive EPC rating systems for multifamily housing in Europe. Other sustainable building characteristics include aerothermal heat pumps in each unit, and electric vehicle chargers soon to be installed along with bicycle racks in the underground parking garage.
Borja García-Egotxeaga, Neinor Homes CEO commented: “The rental market is an emerging asset class in Spain and its strong growth prospects offer a very compelling investment opportunity for both developers and investment managers. Between 2021 and 2026 the number of rental households is expected to increase by 700k while the current pipeline for new buildings stands at only 25-30k units. Neinor will be responsible for approximately 10% of the total new supply and is ready to assume a leading role in the Spanish BTR sector”.
Jordi Argemí, Neinor Homes’ Deputy CEO and Chief Financial Officer, commented: “This sale is a key milestone in the execution of Neinor’s strategic plan (2023-27) announced just a few months ago. It provides additional visibility over FY23 results where we have already achieved our targets while, at the same time, offers a clear signal to capital markets over the capacity to unlock and crystallize the value behind Neinor’s BTR platform”.
Fernando Ramírez de Haro, Managing Director of Savills Investment Management for Spain and Portugal, said: “The addition of these assets to our portfolio will strengthen our position in the Build to Rent segment, which offers very compelling growth opportunities thanks to the gap between supply and demand in the market. The Valencian market in particular has registered a substantial increase in demand for rentals in recent years, consolidating the position of these types of asset. In the Spanish market, which offers robust fundamentals, we invest in opportunities that allow us to generate sustainable, long-term value for our investors.”