Neinor Homes completes €140mn ABB, eyeing further growth opportunities in a buoyant Spanish Residential market

MADRID, 24 October, 2025 - Neinor Homes, Spain’s leading listed residential developer, announces the successful completion of an equity capital increase through an Accelerated Bookbuild (ABB) raising gross proceeds of €140mn.

The transaction was executed through the issuance of 8,900,190 new shares at a price of €15.73/sh, representing a 6.4% discount to the previous day’s close and at a 3.1% premium to the €229mn ABB executed earlier in the year.

In the context of this transaction, Neinor’s largest shareholder, Orion Capital Managers, subscribed €100mn of the total amount raised and, following the capital increase, their stake will increase to 28.8%. The subscribed amount corresponds to the amount of the irrevocable signed prior to the announcement of the AEDAS Voluntary Tender Offer.

Furthermore, following the completion of the capital increase, the unutilized irrevocable commitments from the three largest shareholders will cease to have effect. The company confirms that it currently has sufficient capacity to complete the Voluntary Tender Offer over AEDAS, while maintaining additional flexibility to pursue further growth opportunities. Neinor has agreed to a 90-day lock-up period.

In addition to Orion, a further €40mn was subscribed by existing shareholders, once again demonstrating strong and consistent support for the company.

Following the capital increase, Neinor’s total share capital will increase by 9.9% and consist of 98,862,691 shares. The three largest shareholders will own a combined stake of c.60% in the company, while the free float will stay roughly unchanged at approximately 40% of the share capital.

Overall, the offering was met with strong demand, generating total orders in excess of €550mn, nearly 4 times the amount raised, reflecting the confidence of Neinor’s existing shareholders in its strategy, execution capabilities and market leadership.

In this transaction, Banco Santander and J.P. Morgan have acted as Joint Global Coordinators while Alantra acted as Joint Bookrunner.

Spain remains one of the safest residential markets worldwide being structurally undersupplied, underleveraged and exhibiting healthy affordability ratios

Spanish GDP growth expectations have continued to accelerate throughout the year and now stand at 2.7% for 2025 and 2.0% for 2026, clearly outperforming most developed economies and the broader Eurozone, where growth is expected to remain below 1.3% per year (source: Bloomberg).

This sustained outperformance is supported by healthy employment dynamics, real wage growth, a buoyant tourism sector, declining interest rates and low leverage across households, corporates and the banking system.

Adding to the country’s solid economic momentum, private consumption has been supported by a steadily increasing population, which has grown for 16 consecutive quarters, resulting in an increase of nearly 2mn people (+4.2%) to reach 49.3mn as of July 2025 (source: INE). This growth has been concentrated in four key regions Madrid, Catalonia, Andalusia and Valencia, which together account for approximately 75% of the total population increase witnessed over the past four years.

Under this exceptionally strong housing market backdrop, housing supply over the past four years has remained broadly stable with new housing starts ranging between 90,000 and 100,000 per year. This contrasts with an average of 240,000 units over the past 30 years and more than 600,000 units annually before the Global Financial Crisis. According to a recent report by the Bank of Spain, there is an accumulated housing production deficit of around 700,000 homes since 2010 through the difference between new homes finished and net households created.

Over this period, even though Spanish banks have remained relatively conservative on high-LTV lending, house prices have continued on an upward trajectory, accelerating in recent quarters. In nominal terms, average house prices have increased by 36% since mid-2021 (+8.0% CAGR). While much of the initial rise was driven by higher inflation, more recent data shows that price growth is increasingly outpacing inflation - rising 11% year-on-year in 2Q25. In real terms, Spanish house prices have grown by 14.5% over the same period (+3.4% CAGR).

Despite the recent increase in house prices, the Spanish residential market continues to display healthy affordability levels. According to data from the Bank of Spain, the average mortgage effort rate stands at around 30%, one of the lowest levels recorded in the past three decades. Throughout 2024, this ratio has started to decline, supported by easing mortgage costs. In addition, household debt as a percentage of GDP has continued to trend downward, reinforcing the solid fundamentals of Spain’s housing market.

Since 2023, Neinor has closed transactions in excess of €2,700mn to build c. 31,000 housing units in Spain

As of March 2023, Neinor unveiled its 5-year Strategic Plan (2023–27), targeting €1bn of land investments, €500mn to be deployed directly by Neinor and the remaining €500mn through strategic partners under its Asset Management platform.

Following the AEDAS Homes transaction, the company has executed land and corporate acquisitions worth more than €2,700mn, of which more than €1,950mn have been committed directly by Neinor and the remainder,  +€750mn, by its strategic partners through joint-venture agreements signed with AXA IM, Orion Capital Managers, Bain Capital, Avenue Capital, Urbanitae, and Ameris. In total, these transactions comprise c.31,000 housing units to be developed across Spain’s most dynamic and sought-after regions, with a nearly 50% exposure to Madrid.

This implies a significant overachievement and acceleration of the 5-year Strategic Plan (2023-27) targets with +170% fulfilment of the total investment target of €1,000mn.

Eyeing further growth opportunities in a buoyant Spanish Residential Market

With the AEDAS Homes transaction fully funded following the €750mn senior secured notes agreed with Apollo and the €229mn ABB executed in June 2025, Neinor continues to actively assess new growth opportunities in the Spanish Residential market. The company is increasingly benefiting from a strengthened competitive position, as most peers have reduced or halted new land acquisitions in recent years.

This environment positions Neinor to selectively deploy capital into accretive opportunities under its equity-efficient growth strategy and targeting opportunities in its core Build-to-Sell business as well as alternative living such as independent senior living and or flex living.

Following the recent Green Bond Tap (€100mn) and now the ABB €140mn, through which Neinor has raised total gross proceeds of €240mn, the company is well positioned to pursue further growth opportunities while maintaining disciplined capital allocation, prioritizing future shareholder returns and a strong balance sheet.

Borja García-Egotxeaga, CEO of Neinor Homes, commented: “We are very pleased with the outcome of this transaction and the continued support from Orion, which once again demonstrates its confidence in Neinor’s long-term strategy and growth potential, as well as from institutional investors who have reaffirmed their backing. The proceeds will allow us to continue expanding in the most attractive segments of the Spanish market while maintaining a disciplined approach to capital deployment.”

Jordi Argemí, Deputy CEO and CFO, stated: “This capital raise further strengthens Neinor’s balance sheet and enhances our capacity to execute on the pipeline currently under analysis. The participation of our cornerstone shareholder alongside other long-term institutional investors underscores the strong confidence in Neinor’s strategy, execution, and value creation potential. Following its €50mn equity investment in Neinor’s asset management business in 2023, Orion’s participation in this transaction represents a renewed show of commitment to the company and its long-term vision.”