Dunas Capital and Partners Group announced the creation of Nuva Living, a platform that has an investment capacity of around 400 million euros in Build-to-Rent (BTR) and Private-Rented-Sector (PRS) assets.
The vehicle, which has been launched through Dunas Rental Spaces, already has a portfolio of approximately 200 homes, and expects to reach 1,500 units in the next 5 years. The objective is to satisfy the market demand for a quality, low-risk, and diversified residential portfolio in the Spanish rental market.
Nuva Living is expected to offer a solid and stable profitability profile in the coming years through a diversification strategy focused on BTR and PRS, a segment that is currently poised to experience notable growth in Spain, as it is expected that the Residential rental dynamics will converge with other European countries in the coming years. The indicators show the growing preference of Spaniards for rental housing over property, even during the years of economic recovery prior to the crisis, which will underpin the growth in demand for this asset class in the future.
The vehicle will take advantage of this trend, becoming a differential portfolio for institutional investors to have exposure to a portfolio of PRS assets, with a bond-type return, in privileged locations, such as Madrid, Barcelona and other economically dynamic Spanish cities.
David Angulo, President of Dunas Capital, stated: "We are very excited to become a local partner in Spain of such a prestigious global player as Partners Group. I am fully convinced that our team's extensive knowledge of the Spanish real estate sector and the impressive Partners Group capabilities will allow us to create a unique solution for institutional investors to have a high quality and diversified exposure to PRS Spanish assets in our country. Innovation is one of our key values, and the combination of both firms will create a vehicle very well positioned to offer sustainable profitability over the years. "
Jaime Morán, director of Dunas Real Estate, said: "The opportunity to invest now in BTR and PRS assets in Spain requires a vehicle like Nuva Living, capable of capturing the tailwinds of the sector through investments focused on liquidity and with portfolio specific characteristics in mind. Our strategic partnership with Partners Group is a fantastic opportunity to build on this investment thesis, as we both share a common vision for the sector. We already have a portfolio of 200 homes and are on our way to increase this volume and reach 1,500 units in the next few years ".
Romain Ruiz, Managing Member of the Private Real Estate area of Partners Group, stated: “Nuva Living represents a unique opportunity to build a portfolio of well-located residential assets of excellent quality and, most importantly, affordable for tenants. We continue to advance our strategy to invest in real estate assets that benefit from the underlying megatrend of the New Living concept, where we provide serviced homes in underserved markets. We are very excited about our collaboration with Dunas, which have significant local experience and share our vision for this strategy ”.