This operation was part of the company’s strategy for 2020, which included diversifying its lines of business, adding the creation of its build-to-rent Neinor Rental department through the acquisition of 75% of Renta Garantizada, to the development department and the company’s bank servicing line.
In Madrid, the developer acquired a 30.000 sqm terrain located at Retamar de la Huerta, where it should develop more than 200 single and multi-family units. The 7.476 sqm terrain it bought in Valencia is located at Torre d’en Conill, where the company will build more than 50 semi-detached houses.
In a release, Neinor Homes remarked, within this acquisition, an effective payment structure which will allow it to obtain returns of more than 20% (IRR), as well as a gross margin of more than 26% compared to the 24% it had as its goal.
The developer closed 2020 with a 100 million euro EBITDA and started the new year with a cash position of 200 million euro. Concerning the future, Borja García-Egotxeaga, Neinor Homes’ CEO, stated that «we look towards 2021 with optimism and trusting that the world will manage to beat the pandemic within the coming months thanks to the vaccination which has already started».
The housing segment has proven itself one of the most resilient against the pandemic, which for Neinor Homes is an advantage.
Borja García-Egotxeaga assumed that «in terms of our activity, we believe the housing segment will come out stronger from this crisis and that this year we shall see how the first public-private programs for the construction of affordable housing will be carried out in several autonomous communities. We will work towards having part of the Next Gen funds reach the new housing segment, as an essential element to support the construction activity in 2021 and 2022 and towards encouraging an increasingly more sustainable construction», he concluded.