Avalon Properties and Aedas Homes are finalizing the signing of a significant transaction in the residential market. This is the sale by the promoter of a portfolio of almost 1,000 affordable rental homes that correspond to the VIVE 3 Plan of the Community of Madrid (CAM), as confirmed by different sources in the sector to elEconomista.es.
The operation, which will exceed 100 million euros and will be signed probably this week, confirms the return of appetite for Build to Rent (BtR), which was stopped dead by the rise in rates.
Avalon, which was one of the first investors to bet on this model in Spain to shape a large portfolio of rental apartments, will receive the projects, and therefore execute the purchase, once their construction is completed.
Specifically, with this acquisition it will include three developments in its portfolio that add up to 944 affordable homes that will be delivered, expected, throughout 2026.
Currently, the fund company Ares Management manages a portfolio of more than 6,500 residential rental units in Spain.
According to the same sources, to carry out this operation, the fund has closed a financing agreement with INGwhich enters affordable residential development for the first time.
The projects are located in Aranjuezwith 400 units, Navalcarnero (318 homes) and Villalbilla (226 floors). All of them are being executed under Breeam certification and total more than 150,000 square meters of constructed area. Thus, they house properties with 1 to 3 bedrooms and common areas with swimming pools, children’s play spaces and garden areas. In addition, they have a ground floor for parking spaces, storage rooms and complementary facilities.
Avalon and Aedas are already old acquaintances. In fact, they went hand in hand to the first phase of Plan VIVE and were awarded, together with SanJose Constructora, lots 1 and 2, which totaled more than 3,580 homes. In this case, Avalon assumed the promotion risk. However, in the current operation the fund did not participate in the awarding of the projects by the Community of Madrid, and therefore enters the operation in a final phase, thus avoiding the risk of promotion.
This operation, therefore, will require authorization from the Community of Madrid, which will be responsible for verifying that the new buyer meets the requirements established by the VIVE Plan. This plan, through public-private collaboration, wants to promote the development of construction of affordable rental housing on land that is owned by the administration. Thus, on these lands, private investors build developments and manage them, with prices below market, for a period of 50 years.
Interest in Build to Rent returns
Avalon’s appetite to increase its rental housing portfolio in Spain through BtR projects is a sign that this type of operation is returning to the playing field once the tension in rates has eased. In fact, In July, the subsidiary of the Ares fund closed the purchase from Neinor of a BtR development consisting of 337 homes in the town of Alovera (Guadalajara). In this case the transaction was around 60 million euros.
Other players with an important presence in the rental sector have also closed BtR purchasesas is the case of Azora, which last October, through its Nestar rental platform, acquired a project of 250 homes from the French company Emerige, located in Valdemoro (Madrid).
#Aedas #Homes #sells #affordable #rental #homes #Avalon #million
