A build-to-rent (BTR) joint venture platform, Stay by Kronos, between Kronos Real Estate Group and Nuveen Real Estate, has purchased two plots of land in Madrid and Barcelona to develop over 600 new build to rent homes.
Following this latest transaction, the platform now boasts 11 developments in Valencia, Tarragona, Pamplona, Córdoba, Barcelona and the Region of Madrid, with the latter region accounting for 55% of the total portfolio.
The two new plots are located in Alcalá de Henares, Madrid, where 332 new rental homes will be built, and Sant Pere de Ribes in Barcelona, which borders Sitges and Vilanova i la Geltrú and will be home to 302 new units. The project will entail investments of €62m and €66m respectively and both will be completed in the first quarter of 2025.
Stay Managing Director Carlos Rodríguez-Bailón said: “The acquisition of these two new strategically-located, high-volume plots has consolidated our portfolio, and allowed us to deliver 3,000 build to rent (BTR) homes. Our strategic plan, which will continue to underpin a business model geared towards enhancing tenants’ lives and providing an ecosystem of wellbeing, technology and sustainability-related services, is now 60% complete.”
Marta Cladera de Codina, Managing Director at Nuveen Real Estate Iberia, explained: “The broad geographical footprint of the projects we are developing shows that many local administrations are beginning to grasp the need for new rental housing, not only to grow the housing stock but also as an economic driver to help attract and retain qualified professionals. The events of the past two years have also driven up demand for better quality, well-managed rental accommodation which also offers the added benefit of longer-term certainty and security. Stay is an unrivalled concept in the Spanish market and has positioned itself as a European benchmark”.
Through the acquisition of these two new plots, Stay by Kronos will deliver over the next four years with the construction of 5,000 rental units throughout Spain with a total asset value of around €1 billion.
Tarragona, with 144 homes, is a pioneering city in this disruptive housing model, as are Torrejón de Ardoz (Madrid), Valencia and Cordoba, where the platform is set to deliver 121, 315 and 270 homes respectively over the next two years.
In the city of Madrid, Stay will operate 516 homes in Cuatro Vientos as of 2024, followed by 332 in Alcalá de Henares and 810 in Los Berrocales due for completion in 2025.