Aedas Homes and King Street Capital Management, one of the world's leading global institutional investors, have signed an agreement to invest up to 270 million euros of capital for the development of new housing.
The new joint venture, which is majority owned by King Street, aims to complete and develop housing developments in the medium and high end segment for sale to private individuals in the country's main markets. Aedas Homes, in addition to participating in the capital, will be responsible for the comprehensive management of the developments from design to marketing, construction and delivery to customers.
This agreement involves an initial investment of 150 million of capital in Aedas Homes projects already underway in the provinces of Madrid, Barcelona, Malaga, Alicante, Valencia and Tenerife with a total of nearly 700 homes, and, additionally, provides for an investment target of a further 120 million of capital to drive strategic growth through new residential projects in Spain. In total, the projects developed through this joint venture could achieve revenues of around 900 million euros.
Aedas Homes has delivered more than 1,000 homes in projects under management and co-investment since 2021
"This agreement gives continuity to the strategy of developing developments with third-party capital that we have been developing for years," said David Martínez, CEO of AEDAS Homes. In the last three years, the developer has delivered more than 1,000 homes in developments with family offices and institutional investors, and has a further 3,600 units under management for third parties. The developer's board member highlights that this agreement "will allow the company to diversify its sources of capital, increase its activity and continue to create value for shareholders".
Paul Brennan, partner and co-head of real estate at King Street, said: "We are pleased to partner with AEDAS Homes to continue King Street's global expansion into real estate through this residential joint venture. He added: "The Spanish residential for-sale market continues to show resilience and we are excited to partner with Spain's leading developer on this new project. We expect this collaboration with Aedas Homes to continue to grow through future opportunities in the Spanish residential market.
Aedas Homes has been advised by Deloitte and Gómez-Acebo & Pombo and King Street by Uría Menéndez, Allen & Overy and Almar Consulting.