Neinor Homes has agreed with a German fund to sell its first BTR development, Hacienda Homes. The developer will continue to manage the asset through various group entities, including Renta Garantizada - a company that manages more than 4,000 third-party rental flats in the main areas of Spain.
Hacienda Homes, which was delivered in December 2021, currently has an occupancy rate of 97% and generates annual rents of approximately €1.5 million. Throughout 2022, the company has renegotiated almost a dozen rental contracts with a 14.5% increase, reflecting the clear potential for future rent increases.
Hacienda Homes, the first 'Smart Building' for rent in Spain, connects all the services of the property to the tenant through the mobile application developed with technology owned by Neinor Homes. With this application, tenants can book the co-working rooms, gourmet services, access to rent one of the available electric cars, pay their monthly payments, as well as consult the bill history or request technical assistance.
In terms of energy, Hacienda Homes has been awarded the prestigious BREEAM® Good seal and has a BA energy certificate.
As of 30 September 2022, Neinor Rental had 3,861 units in various stages of development with estimated annual rents of €42M and €900M of GAV
Borja García-Egotxeaga CEO of Neinor Homes underlines that: "This sale represents an important corporate milestone as it is a clear demonstration of the value of the Neinor Rental platform, on which we continue to work and negotiate with other investors. In addition, it is particularly relevant in the current macroeconomic context where since March the investment market has been almost at a standstill and no relevant transactions have been closed in the residential sector. This is further proof that Spain is today in a radically different situation from other European countries as a result of the structural adjustment carried out over the last 15 years, both due to the scarcity of product and to the low level of indebtedness".
Jordi Argemí, Deputy CEO and CFO of the Group says: "Despite the macro context, this transaction was closed in line with our capital market guidelines. Furthermore, with this sale we have been able to maximise the value of our land by achieving margins above (+20%) of Neinor's traditional sales business".