Asset management platform DeA Capital and investment manager Harrison Street have launched a JV to develop built-to-rent (BTR) residential housing in Spain.
The first project consists of a seed portfolio of 441 BTR units spread over two residential properties in Camas and Entrenucleos, metropolitan area of Seville.
The Camas property will comprise 144 units ranging from one- to three-bedrooms, while the Entrenucleos property will have 297 units with a combination of two- and three-bedroom units.
Emanuele Caniggia, DeA Capital head of real estate, said: ‘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, commented: ‘This joint venture will allow us to execute upon a shared pipeline of planned BTR assets in Spain and other European markets for the benefit of all our investors and partners.’
Paul Bashir, CEO of Harrison Street's European business, added, ‘Most of the rental housing supply in Spain is outdated, operated by private owners, and was originally built to be sold rather than rented.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, amenitized, and affordable rental housing, Harrison Street is pleased to deliver high-quality, professionally managed BTR developments to Spain's severely undersupplied market.’
Both sites are only 15 to 20 minutes from Seville's city centre, within walking distance of public transportation and a variety of retail and entertainment options.
All-inclusive luxury amenities 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.
The JV is in the process of finalizing the purchase of another 760 units in Tier I cities, taking its portfolio to 1,200 units under development before the end of 2022.
Additional developments are being discussed, including in cities such as Valencia, Alicante or Valladolid, where the JV plans to build another 3,000 units over the next 18 months.
Development and operational management services for the portfolio will be provided by DeA Capital Iberia, a Spanish affiliate of DeA Capital.
JLL Spain served as the JV's commercial advisor and oversaw the purchase of the initial projects.