DeA Capital and Harrison Street have formed a new joint venture to develop build-to-rent (BTR) residential projects across Spain.
The joint venture(JV) announced its first development of a seed portfolio of 441 build-to-rent units located across two properties in Seville.
DeA Capital Iberia, DeA Capital’s Spanish subsidiary, will provide development and operational management services for the portfolio.
JLL Spain has acted as commercial advisor to the JV and the acquisition of the initial projects.
This initial portfolio includes two BTR residential assets located in the newly developing regions within the metropolitan area of Seville, Camas and Entrenucleos, and will meet the increasing need of affordable residential product for rent.
The Camas property will comprise 144 units and contain a unit mix of one- to three-bedrooms, and the Entrenucleos property will comprise 297 units and contain a mix of two- and three-bedroom units.
Both properties will be located just 15 to 20 minutes from Seville’s city center and situated within walking distance of public transportation options and an array of retail and entertainment venues, which is a “natural” alternative for the younger population.
The JV is currently closing the acquisition of another 760 units in Tier I cities, which will allow the JV itself to reach 1,200 units under development before year end.
Further developments are under negotiation including amongst others, locations such as Valencia, Alicante or Valladolid, where the JV is targeting to add another 3,000 units in the next 18 months.
Emanuele Caniggia, DeA Capital Head of Real Estate said, “We are thrilled to work with Harrison Street, whose institutional platform, strong operational know-how, and expertise building complex portfolios will enable us to continue to bring high-quality rental housing to key European markets with strong supply-demand fundamentals.”
Koldo Ibarra, CEO of DeA Capital Iberia said “This joint venture will allow us to execute upon a shared pipeline of planned BTR assets in Spain and other European markets for the benefit of all our investors and partners.”
Paul Bashir, CEO of Harrison Street’s European business, said, “Most of the rental housing supply in Spain is outdated, operated by private owners, and was originally built to be sold rather than rented. As Spain continues to experience multi-year growth in demand for modern, amenitized, and affordable rental housing, Harrison Street is pleased to deliver high-quality, professionally managed BTR developments to Spain’s severely undersupplied market. We look forward to expanding our presence in Spain’s rental housing market alongside DeA Capital, whose established investment management team boasts unparalleled access to Spain’s institutional developers, longstanding relationships in all regions of the country, and a strong investment track record across European markets including Italy, Spain, Germany, France, and Poland.”