AEW has agreed to forward purchase two build-to-rent (BTR) developments that will deliver 206 apartments in the growing Moreras district of Valencia, Spain, in an off-market transaction, on behalf of a separate account mandate for a German pension fund.
The assets are scheduled for delivery in 2023 and will comprise c. 23,400 sqm across two buildings – one 21-floor high-rise and one 11-floor low-rise – constructed by experienced developer Metrovacesa. The properties are targeting a high EPC rating for energy consumption and will offer a mix of studios in addition to one- to four-bedroom apartments at mid-market pricing levels, finished to a modern, high quality standard, alongside a range of amenities, including swimming pools, a gym, paddle tennis courts, gardens and ground floor retail units. There are also storage units for each apartment and 218 underground car parking spaces.
“This is our second residential forward purchase agreement in Spain on behalf of this client and is in line with our strategy to invest in future-oriented opportunities in Europe’s top-tier cities. Occupancy in this district of Valencia remains high with limited supply in the local rental sector and we are confident that this development will provide much needed above-market quality and modern homes,” said Lars-Henning Pylla, Fund Manager at AEW.
The Moreras district (La Punta) is a growing ex-industrial area of Valencia, which is benefitting from significant regeneration, said AEW.
Planned improvements to the public transport network, including the opening of a new Metro station, have fuelled investment and development activity in the region.
The build-to-rent developments are situated in a strategic location in the eastern part of the city between the historical city centre and local beaches, with the iconic Ciutat d les Arts i les Ciències and amenities close by.
Carsten Czarnetzki, Head of Spain at AEW, added: “We are pleased to grow our partnership with renowned developer Metrovacesca, with whom we are developing a further two BTR schemes in Palma de Mallorca. It is an exciting time to enter the Moreras submarket, which is still in the early stage of consolidation and this scheme will benefit from the significant amount of urban regeneration in the area.”
AEW was advised by Fabregat Perulles Sales, Arcadis and Yester & Morrow.