A new turnkey agreement Metrovacesa closes a second agreement with AEW for the sale of 216 rental homes in Valencia

Metrovacesa, the leading real estate developer in Spain with more than 100 years of history, has signed a new turnkey Build to Rent agreement with AEW, a real estate fund manager belonging to the Natixis group. This transaction involves the sale to AEW of a total of 216 homes in Valencia for close to 50 million euros.

Through this transaction, Metrovacesa will develop these properties and AEW will operate them as rental housing. Specifically, the homes will be distributed in two multi-family residential buildings. A first one, Moreras Torre, will have 155 units distributed over 21 floors, equipped with a swimming pool, paddle tennis court and multi-purpose rooms, with panoramic views of the Marina of Valencia and the City of Arts and Sciences. In addition, Metrovacesa will develop a second residential complex of 51 homes, distributed over 11 floors, equipped with a swimming pool and multi-purpose room. Both projects will enjoy a privileged location, specifically in the Moreras area, close to the Port of Valencia and the City of Arts and Sciences, where Metrovacesa has two other developments currently under construction (Residencial Amura and Avante Residencial, with a total of 124 units) for traditional sale or Build to Sell, which are being very well received in terms of demand.

The construction works of both developments will start very soon and will be completed in 2023.

This new agreement reinforces and consolidates Metrovacesa’s strategy in the turnkey residential rental market and adds to seven other projects of a similar typology already agreed with institutional investors, totalling 703 homes. In addition, this transaction highlights the strength of its broad and diversified land portfolio to respond to the needs of the current market. The first of these seven projects was delivered a few months ago in Arganda del Rey (Madrid) and the homes included in the other agreements are currently under development in various locations such as Madrid, Barcelona, Mallorca and, now, Valencia.

This is the second agreement signed by Metrovacesa with AEW. Last October, a turnkey development agreement was signed this investment firm for 203 homes for rent in Palma de Mallorca, which are currently under construction and with works to be completed in 2023.

This transaction has been advised by TC Gabinete Inmobiliario.

Investment interest in new locations

Specialized rental operators are becoming a new target client for developers that have quality assets and the capacity to develop large turnkey projects, as is the case of Metrovacesa. In this sense, the closing of this new transaction confirms the trend that has been observed in recent months regarding investor interest in expanding the focus to other locations, beyond Madrid and Barcelona.

Jorge Pérez de Leza, CEO of Metrovacesa, states that: “this agreement reinforces our activity in the Build to Rent segment, and renews the confidence placed by institutional investors in our developments. This type of transaction highlights one of Metrovacesa’s main strengths, which is our ability to meet different demand profiles in the real estate market and in different locations, developing attractive, high quality developments in a manner consistent with our social values and respect for the environment.”

Metrovacesa S.A. is a major Spanish property company, headquartered in MadridSpain, which was the largest publicly traded real estate developer in the Eurozone. The company is primarily focused on the leasing of a range of property in France and Spain, which comprises around 80% of its portfolio.

AEW Capital Management (AEW) is an American real estate investment firm headquartered in Boston. The firm is the real estate asset management platform of Natixis Investment Managers.

In 2022, the firm was ranked by PERE (under Private Equity International) as the eighth largest Private Equity Real Estate firm based on total fundraising over the most recent five-year period.

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