Aviva Investors has acquired a second development as part of its build-to-rent (BTR) platform in Spain in partnership with Spanish developer Layetana Living.
The ground up development is situated in the La Gripia district of Terrassa, Catalonia, and will provide 85 units across a mix of one, two and three bedrooms.
The scheme will also provide extensive amenities, including swimming pool, resident’s lounge, co-working facilities and an on-site gym. Construction work is expected to commence in summer 2023 and complete by Q4 2024.
It is the second investment by Aviva Investors in partnership with Layetana, having acquired a 71-unit scheme in the Sants district of Barcelona in October 2022. Knight Frank, the global property consultancy, advised on the acquisition, with the site being sold by Sareb.
In keeping with Aviva Investors’ commitment to achieving net zero across the entirety of its Real Assets platform by 2040, a strong emphasis will be placed on sustainability. This will include measures to maximise energy efficiency and minimise ongoing energy requirements of homes, making them fit for the transition towards a low carbon future.
George Fraser-Harding, Head of European Funds at Aviva Investors, said: “We are pleased to secure our second development in the Spanish residential market, which will provide a quality, sustainable rental housing solution in a market which is chronically undersupplied. Spain remains a market we are actively seeking opportunities in, as it continues to display strong fundamentals, complementing our growing European portfolio and focus on delivering an active equity strategy. We believe this approach will best-serve our investors, with returns which can better-reflect the changing risks and structural changes occurring across today’s real estate market.”
James Wells, BTR Director at Layetana, commented: “We are delighted to close what has been a challenging year with this acquisition, our partnership with Aviva Investors continues to flourish and it is very much a signal of our intent that we continue to seek and acquire the best opportunities with strong underlying fundamentals. Terrassa has a major under-supply of modern, institutionally managed apartments. We have assessed a number of opportunities in the city and are excited to have identified this site in a consolidated area with excellent transport links to both Terrassa centre and Barcelona. We look forward to setting a new benchmark for residential rental in the city.”