Investment management firm, Harrison Street and DeA Capital S.p.A. (DeA), an independent alternative asset management platform in Italy with a pan-European presence, announce a new joint venture (JV) to develop Build to Rent housing across Spain. The JV also announces its first development of a seed portfolio of 441 Build to Rent units located across two properties in Seville. DeA Capital Iberia, DeA’s Spanish subsidiary, will provide development and operational management services for the portfolio. JLL Spain has acted as commercial advisor to the JV and the acquisition of the initial projects.
“This joint venture will allow us to execute upon a shared pipeline of planned Build to Rent assets in Spain for the benefit of all our investors and partners.”Emanuele Caniggia, Head of Real Estate, DeA
The initial portfolio includes two Build to Rent assets in Camas and Entrenucleos – both newly developing regions within the metropolitan area of Seville. The new homes will help meet the increasing need of affordable rental homes.
The Camas Build to Rent scheme will include 144 units – a mix of one-, two- and three-bedrooms. The Entrenucleos scheme will comprise 297 units – a mix of two- and three-bedroom units. Both properties will be located 15 to 20 minutes from Seville’s city centre and are in walking distance of public transport options and retail and entertainment venues.
Amenities at both schemes include a 24-hour concierge, gym, resident lounge, swimming pool, paddle court area, cinema room and tenant app, as well as private terraces, gardens, co-working spaces and a courtyard.
“Most of the rental housing supply in Spain is outdated, operated by private owners, and was originally built to be sold rather than rented. As Spain continues to experience multi-year growth in demand for modern, amenitised, and affordable rental housing, Harrison Street is pleased to deliver high-quality, professionally managed Build to Rent developments to Spain’s severely undersupplied market.
“We look forward to expanding our presence in Spain’s rental housing market alongside DeA, whose established investment management team has facilitated access to Spain’s institutional developers, longstanding relationships in all regions of the country, and a strong investment track record across key European markets.”Paul Bashir, Chief Executive Officer, Harrison Street’s European Business
The JV intends to add additional projects in Tier I cities in the near term, which would allow the platform to reach 1,200 units under development before year end. Further developments include locations such as Valencia, Alicante and Valladolid, where the JV is targeting to add another 3,000 units in the next 18 months.
“We are thrilled to work with Harrison Street, whose institutional platform, strong operational know-how, and expertise building complex portfolios will enable us to continue to bring high-quality rental housing to key European markets with strong supply-demand fundamentals.”Koldo Ibarra, CEO of DeA Capital Iberia