The two companies will use their joint venture Stay to go through with the project. This new company dedicated to build-to-rent already has 5 projects of this type to be developed over the next 3 years, located in cities such as Madrid, Valencia, Tarragona and Cordoba. This is Stay’s first investment, on which the company will invest more than 250 million euro and which will consist in more than 1.400 dwellings.
Besides this project, the joint-venture already has four additional projects at the planning stages, which will increase its investment in a further 325 million euro (1.600 units more). All new dwellings will feature gym, fully equipped kitchen, swimming pool and gourmet, meeting and working areas.
The build-to-rent segment has been arousing the interest of international investors, since, according to Marta Cladera de Codina, managing director for Iberia at Nuveen Real Estate, this segment «is clearly underexploited in Spain and in need of quality offer. If we add the limitations in terms of mortgages, demographic change and the consumers’ growing preference for flexibility, location and prime, modern rental dwellings, we find that the development of these new projects is crucial for the Spanish real estate market right now», she added.
By joining forces with Kronos, Marta Cladera de Codina considers that Nuveen RE «can use the combined experience of both companies in the Spanish market to offer high quality and well positioned assets».
Saïd Hejal, Kronos’ CEO, stated that «we now want to lead the BTR segment with an innovative product focused on the tenant and based on design, technology and services. After analysing the European Union and Northern Europe’s rental markets during the last few years, we are delighted to having joined Nuveen in order to launch the STAY platform, which will bring these top-level characteristics to the BTR segment».
For this joint venture, Nuveen RE was advised by Linklaters and Deloitte. Kronos, on the other hand, was advised by Eastdil Secured and Cuatrecasas. Kronos will act as developer and will manage the assets through the brand Stay.