Savills IM has purchasd two newly built residential properties in Valencia for its European Living Platform from Spanish developer Neinor Homes for €66 million.
The transaction represents the second round of acquisitions for the platform following the purchase of six newly built, high quality and fully-let Swedish residential assets for c. €100million in April 2023.
The two properties in Valencia comprise a total of 209 residential units over 20 floors. The first tower has a total lettable area of 11,987 sqm with a total of 100 apartments. The second has 14,574 sqm of total lettable area distributed across a total of 109 apartments. Each tower also has 673 sqm of retail on the ground floor.
Completed in November 2022, the two properties are part of the four residential towers that make up SkyHomes, 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 high sustainability standards and provided with a strong EPC “A” label, which is 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.
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.”
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.”
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