Neinor completes strategic monetization of BTR portfolio, unlocking c.€325mn since 2023

MADRID, May 12, 2025 - Neinor Homes, the leading listed residential property developer in Spain, has completed the sale of two build-to-rent (BTR) projects located in the provinces of Guadalajara and Seville, Spain, to real estate asset manager Round Hill Capital. These BTR schemes have finished construction works during 2024 and are fully operational.

Additionally, Neinor has reached an agreement to sell three rental buildings, comprising 128 housing units, located in the provinces of Malaga, Alicante and Valencia to 1810 Capital. The assets belonged to the Sardes Portfolio that was acquired by Neinor in early 2021. Furthermore, as part of the agreement, Neinor will continue to manage and operate these buildings under its rental OpCo, Renta Garantizada.

The transactions amount to approximately €50mn. Moreover, these sales will enhance free cash flow generation without a material impact on Neinor’s income statement for 2025. Savills advised Neinor on both deals.

These deals reflect the appetite for rental housing in Spain and underscores the successful execution of Neinor’s BTR monetization strategy

Since the presentation of its Strategic Plan, Neinor has sold a total of eleven rental assets to institutional investors, comprising 1,334 housing units located in the provinces of Madrid, Guadalajara, Valencia, Seville, Alicante and Málaga. These sales have generated proceeds of approximately c.€325mn with attractive gross development margins of 25%. Specifically, Neinor sold the following developments:

• Hacienda Homes (146 units) to Kygal;
• Sky Homes (213 units) to Savills IM;
• Europa Homes (146 units) to Harrison Street and DeA Capital;
• Dual Homes (94 units) to CBRE IM;
• Alovera Homes (337 units) to Avalon Properties;
• Parla Homes (147 units), Delta Homes (57 units) and Sevilla Homes (66 units) to Round Hill Capital;
• Pacifico Homes (28 units), Campanar Homes (60 units) and Novo Parque Homes (40 units) to 1810 Capital;

With these transactions, Neinor has completed the monetization of its BTR portfolio. The remaining rental assets, including part of the Sardes portfolio and Olarizu Homes, have been transferred to the build-to-sell strategy and are being commercialized on a retail basis - following the same approach previously applied to over 1,300 units across projects such as Sue 21, Zorrozaurre, Serena, and others.

Commercialization environment remains highly dynamic benefiting from solid fundamentals and reiterates positive sector outlook for 2025

Earlier this month, Neinor announced that during 1Q25 has pre-sold 670 build-to-sell (BTS) units, reflecting an 86% year-on-year increase in volumes and 97% year-on-year increase in economic value. This performance was driven by the solid fundamentals of the Spanish Residential sector as well as the ramp-up of the Asset Management division, which allowed Neinor to significantly scale up projects under commercialization. Including BTR disposals, Neinor has pre-sold 921# for €295mn in its strongest start of the year ever.

Borja García-Egotxeaga, CEO of Neinor Homes, commented: “Looking back I am pleased to note that our strategy with a mix between build-to-sell and to-rent disposals has been extremely successful to crystallize the value of Neinor’s BTR portfolio, while protecting business margins, accelerate cash flows and optimize our balance sheet. These disposals have played a critical role to fund Neinor’s €600mn shareholder remuneration target. Year-to-date we have already distributed c.€125mn in 1Q25 and, more recently, we approved another €31mn payable this week.”

Jordi Argemí, Deputy CEO and CFO, stated: “From a business standpoint nothing has changed in the sector fundamentals as we continue to benefit from accumulated housing demand, lack of supply while financing conditions for homebuyers continue to improve. The margin outlook for FY25-26 continues to improve as we benefit from a solid forward sales position to maximize selling prices. Although gross margins in FY23-24 have been amongst the highest in our history, we are optimistic for upcoming years.”