- This new Build to Rent agreement, reached with a global institutional investor of US origin, confirms the interest of institutional investors in the development of rental housing in Spain.
- For the developer, the transaction reinforces its differential strategy in turnkey rental development, which already represents more than 20% of its total pre-sales portfolio, as well as the strength and quality of its extensive portfolio of land in different locations.
- The homes, developed by Metrovacesa, are currently in the construction phase and are located in Quart de Poblet, a municipality close to the city of Valencia.
Valencia, 17 January 2022. Metrovacesa, Spain’s leading real estate developer with more than 100 years of history, has signed a new turnkey Build to Rent agreement with a global real estate investor. This transaction involves the sale of a total of 152 units in Quart de Poblet (Valencia), comprising 147 homes and 5 commercial premises.
Through this transaction, Metrovacesa will develop these homes, which will be managed for rental by the acquiring fund. Specifically, this is the second phase of Residencial Q, which includes 147 multi-family homes, between 74m2 and 153m2, and has different types of homes with between 1 and 4 bedrooms with different orientations. The complex, made up of two mid-rise buildings, will have 5 commercial premises, a communal swimming pool, children’s area and gardens, as well as parking spaces and storage rooms.
Residencial Q Fase II is very close to the centre of the town of Quart de Poblet and stands out for its proximity to the centre of Valencia, just 11 minutes away by Metrovalencia. It also has excellent communications and transport links, as it is located just 7 minutes from Valencia airport, located in Manises.
The strong demand for new housing in the area and the significant interest in Residencial Q Phase I, currently in the process of delivery, prompted the development of this second phase with the aim of renting it out. The building is already under construction, with work commencing in the second quarter of 2021 and completion scheduled for the end of 2022.
This new agreement reinforces and consolidates Metrovacesa’s differentiating strategy in turnkey residential rental, a business segment in which it has already signed agreements with various institutional investors for a total of eight developments and more than 800 homes. The first of these eight projects was delivered in Arganda del Rey (Madrid) and the homes included in the other agreements are currently under development in various locations such as Madrid, Barcelona, Majorca and Valencia. This segment currently represents more than 20% of Metrovacesa’s total pre-sales portfolio, demonstrating the developer’s capacity to meet the different needs of housing demand with its diversified land portfolio.
Jorge Pérez de Leza, CEO of Metrovacesa, said: “This agreement confirms the strong interest of institutional investors in rental housing in Spain and endorses our positioning in the Build to Rent segment. Our flexibility to combine a traditional sales phase with a sales phase to an institutional investor for rental purposes allows us to match two projects almost simultaneously, as they target two distinct and complementary segments, thus increasing Metrovacesa’s volume of activity and improving joint profitability”.
