Neinor Homes and AXA IM Alts, an entity specialising in alternative investments with €185 billion in assets under management, have jointly acquired a plot of land in Madrid with the aim of building approximately 250 homes in two 17-storey buildings. In total, the companies will allocate 110 million euros to increase the supply of new residential developments in Madrid.
In this joint venture, AXA IM Alts holds a 90% stake, while Neinor Homes holds the remaining 10% and acts as managing partner of the project. Its responsibility covers design supervision, licensing, marketing and construction. In addition, AXA IM Alts and Neinor Homes will continue to explore other investment and development opportunities in the Spanish residential market in the coming months. Alantra has acted as exclusive financial advisor to this partnership.
The co-investment strategy plays a key role in the business plan announced by Neinor Homes in March 2023. In this way, the residential developer is taking a further step towards its goal of optimising its balance sheet, while at the same time driving efficient capital growth. For the period from 2023 to 2027, Neinor Homes plans to invest around €1 billion in new land acquisitions, half of which will come from new partners.
Borja García-Egotxeaga, CEO of Neinor Homes, commented that "the Spanish residential market is currently positioned as one of the residential markets worldwide with the lowest 'beta', or market risk, as it has a significant imbalance between demand and supply, while leverage is extremely low for households, banks and developers. Neinor has recently launched its co-investment business and we are very well positioned to take advantage of the growth opportunities that the Spanish market offers with an optimal capital structure.