Neinor Homes closed the acquisition of a fully permitted land plot in Valencia with a buildable area of 24,000m2 suitable for the development of more than 200 units. The asset is located in Benicalap district, a consolidated residential area of the city.
The company announced in Q1 the opening of an office in Valencia to conduct business in the Levante region. The local team is already putting into production the regional land bank of 100,000 m2 or over 800 residential units, with one development already launched.
Furthermore, the Company closed on Tuesday the acquisition of two land plots located in Tarragona with a buildable area of 10,000m2 suitable for the development of more than 90 units. The assets are located in the sector Juan XIII, a residential area with lack of new product that is experiencing a strong demand, and marks the expansion of the East Division into a new market that now shows favorable dynamics.
These transactions present a projected gross margin of c. 28%, well above the company targets. Total acquisitions since January now reached €248M, having fulfilled 100% of 2017 and 27% of 2018 targets, showing the company's commitment to capturing market momentum. The company's fully permitted land bank grew to ca. 12,000 units.
The acquisitions continue to show Neinor Homes anticipation of the recovery of regional markets strengthening the Levante Region adding prime land to Valencia's land bank; entering into a new sub-market in Catalonia (Tarragona), and two days after announcing the opening of Eastern Andalusia Region to seize the momentum in Malaga and the Coastal region.