Greystar Real Estate Partners has struck a joint venture with Spanish residential property developer Vía Célere to forward purchase a portfolio of 2,425 rental housing units in the country.
The Build to Rent (BtR) portfolio is one of the largest in Spain and comprises 12 projects located in Madrid, Malaga, Valencia, Seville and Bilbao.
Under the deal, Vía Célere will retain a minority stake of 45% of the portfolio, which will be marketed and operated under the new brand 'Be Casa Essential’, owned by Greystar.
Financial details were not disclosed.
Greystar said the JV will allow it to gain ‘significant exposure to a unique and diversified multifamily portfolio’, increasing the company's exposure to the residential segment. For Vía Célere, the deal provides it with a leading institutional partner in multifamily assets for its BtR portfolio.
The bulk (88%) of the units are already under construction and the remaining 12% are expected to start construction before year-end. The delivery dates of the properties range from 2023 to 2025.
All the developments are located in high demand areas in the main cities of the country, where there is a greater need for rental housing.
José Ignacio Morales Plaza, Vía Célere’s CEO, commented: ‘This agreement is a milestone in the real estate sector in Spain and a step forward in the development and management of Build to Rent in the country.’
Juan Manuel Acosta, Greystar's managing director for Spain, said: ‘This transaction is another example of our firm's expertise in evaluating and structuring deals that align with our investment objectives, while also meeting the needs of our partners and clients. By tailoring our investment approach to the specific needs of each opportunity, we are able to structure deals that have the potential to generate superior returns for our investors.’
Greystar is making the investment on behalf of GEPE I, Greystar's pan-European discretionary fund.
The Be Casa Essential brand is a spin-off of the Be Casa brand, also owned by Greystar, which already operates a portfolio of 2,500 flexible living apartments in Spain. Be Casa Essential aims to create communities that allow its residents to focus on the essentials of life: family, friends and a place to call home.