Investment firms DeA Capital and have teamed up to build homes for rent in Spain.
The companies said the newly created build-to-rent (BTR) venture already has an initial project comprising a portfolio of 441 BTR units divided into two properties in Seville.
The duo said the venture is currently closing the acquisition of another 760 units in Tier 1 cities, which will allow the partnership to reach 1,200 units under development by the end of the year.
Further negotiations are also under way in locations such as Valencia, Alicante or Valladolid, where the joint venture intends to add another 3,000 units over the next 18 months, the companies said.
DeA Capital鈥檚 Spanish subsidiary DeA Capital Iberia will provide development and operational management services for the portfolio, while Spain acted as commercial adviser to the joint venture and the acquisition of the initial projects.
Emanuele Caniggia, the head of real estate at DeA Capital, said: 鈥淲e are thrilled to work with Harrison Street. Their institutional platform, their proven operational know-how and the skills gained in creating complex portfolios will allow us to continue offering high-quality rental accommodation in the main European markets and to exploit the fundamental dynamics of supply and demand.鈥�
Koldo Ibarra, CEO of DeA Capital Iberia, said: 鈥淭his joint venture will allow us to build a shared pipeline of BTR projects in Spain and other European markets to the benefit of our partners and investors.鈥�
Paul Bashir, the CEO of the European division of Harrison Street, said: 鈥淢uch of the rental housing offering in Spain is dated, privately operated and originally built to be sold rather than rented.
鈥淔or years, however, Spain has seen steady growth in demand for modern, fully equipped and affordable rental accommodation, which is why Harrison Street is delighted to supply high-quality, professionally managed BTR units to a rather sparse market.鈥�
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