Aviva Investors forward purchase a Spanish BTR development

Aviva Investors expands its Spain-based portfolio with the forward purchase of a new Build to Rent development.

Spanish Build to Rent development AIRA. Aviva Investors expands its Spanish platform with the forward purchase of the scheme | BTR News
Spanish Build to Rent development AIRA. Aviva Investors expands its Spanish platform with the forward purchase of the scheme.

The asset management business of Aviva plc, Aviva Investors, announces that it has agreed to forward purchase a Build to Rent development in Spain from developer Via Agora, as it continues to grow its Spanish Build to Rent platform in a partnership with Layetana Living, which was formed in October 2022.

Knight Frank and Ashurst advised Aviva Investors on the forward purchase. As part of the agreement, Via Agora will act as both developer and contractor for the scheme, making use of its expertise in sustainable construction and in-house supply chain to manufacture prefabricated façade panels for the development at its factory in nearby Cuenca.

“We are incredibly pleased to secure the off-market purchase of what we expect to be a trophy asset within our Spanish portfolio, in one of Madrid’s most sought-after, prime residential locations. Spanish Build to Rent is still in its infancy, making the ability to move with agility as a first-mover, and secure a high-quality development pipeline, even more important. Valdebebas is home to a young, dynamic population, which we think positions it well for future demand and growth. Importantly, it also expands our Build to Rent platform beyond our existing schemes in the Barcelona region and should bring strong long-term benefits to the portfolio. We look forward to working with Via Agora to deliver this high-quality scheme.”

George Fraser-Harding, Head of European Funds, Aviva Investors

Overlooking 340-hectares of parkland and views of the Madrid skyline, the development focusses on sustainability, including an all-electric design targeting BREEAM ‘Excellent’. The scheme will deliver 234 high-quality mid-market Build to Rent homes – a mix of one-, two- and three-bedroom apartments spread across ten storeys and two basement levels. All homes will include a balcony or terrace.

The development will also provide residents with over 450 sqm of amenity space including a gym, co-working areas, residents’ lounge and dining facilities. External ameneites include a communal pool area, padel courts and a roof terrace. The scheme is expected to complete by mid-2025.

The scheme is located in the Valdebebas area of Madrid, a prime multifamily area on the eastern edge of the city. It is a recently established residential area on the outskirts of Madrid, with good transport links. Residents will also benefit from being 20 minutes away from the city centre.

“Valdebebas is probably the most successful new sector in Madrid in the last 20 years, so it is an important moment for our platform that we can now include this location in the portfolio. With ongoing market uncertainty, we consider this to be a strong signal of intent that we are prepared to continue to acquire projects which offer the required core fundamentals.”

James Wells, Build to Rent Director, Layetana