Magno Living, the joint venture created by DeA Capital and Harrison Street, has acquired new residential developments in Valencia. With €500m in fund capital the partnership plans to deploy a total €1.2bn in Spanish build-to-rent over the next five years.
The first project was announced in August when the partnership bought two residential developments in Camas and Entrenúcleos, Seville. The residential complexes will comprise a total of 441 apartments ranging from single to four bedrooms. Both buildings are located within the metropolitan area and feature all-inclusive luxury amenities including 24-hour concierge, gym, swimming pool, paddle court and swimming pool.
The second deal has just been closed in Valencia and will include 600 flats distributed over two properties in the district of Quart de Poblet. The development brings the total pipeline to 1,000 units with a €270m investment value after just 2 months of their JV announcement.
Further developments will be located in cities such as Alicante, Palma de Mallorca, Málaga, Vitoria or Valladolid. They will not be developing in Madrid or Barcelona at this time despite these being highly demanded for BtR schemes. The JV is targeting 1,500 units by the end of the year and 5,000 units in 5 years’ time with DeA Capital Iberia, the Spanish subsidiary of DeA Capital, providing development and operational management.
Paul Bashir, Chief Executive Officer of Harrison Street’s European business, commented on their partnership, “Most of the rental housing supply in Spain is outdated, operated by private owners, and was originally built to be sold rather than rented. As Spain continues to experience multi-year growth in demand for modern, amenitized, and affordable rental housing, Harrison Street is pleased to deliver high-quality, professionally managed BTR developments to Spain’s severely undersupplied market.”
Emanuele Caniggia, DeA Head of Real Estate added, “We are thrilled to work with Harrison Street, whose institutional platform, strong operational know-how, and expertise building complex portfolios will enable us to continue to bring high-quality rental housing to key European markets with strong supply-demand fundamentals.”
Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets. Since launching its European strategy in 2015, Harrison Street has acquired or developed 79 assets, including over 20,000 student accommodation beds, 4,500 residential units and 2.6 million square feet of Life Sciences space, in partnership with 16 operating partners in the UK, Ireland, France, Germany, and Spain.
DeA Capital is a leading independent alternative asset management platform in Italy with a significant pan-European presence and €26.2m under management.