Barings will invest over €56 million in the acquisition of 188 affordable rental homes, under the Build-to-Rent model, ranging from one to three bedrooms in the Valdebebas area of Madrid, a project being developed on a turnkey basis by the developer Grupo Ferrocarril.
The residential development will be built on a site of approximately 19,000 sqm of buildable land, where, in addition to the properties, parking spaces, storage rooms, a swimming pool and communal garden areas will be constructed.
The construction timelines envisaged by both companies place the start of building works in the first quarter of 2027, with final handover of the complex estimated for 2029. Furthermore, the final design criteria aim to achieve a BREEAM certificate with a ‘Very Good’ rating.
Gunther Deutsch, Managing Director and Head of European Real Estate Transactions at Barings, noted that Spain, the Nordic countries, Italy and Germany continue to offer attractive opportunities this year within the Build-to-Rent and Build-to-Sell residential sectors, underpinned by solid fundamentals and a marked structural shortage of quality rental housing.
The transaction follows other recent investments by the financial firm in the Spanish market, such as the forward purchase of a further 305 homes in Los Cerros, Madrid, and diversifies its activities across the student accommodation, flexible rental and development-to-let sectors.
The firm’s transaction volume in the Iberian Peninsula reached €310 million during the previous financial year, covering logistics, retail, residential and office assets. At European level, the firm has accumulated a committed investment volume of €512 million so far in 2026, having disbursed €580 million throughout 2025.
