Neinor Homes Expands Spanish Residential Dominance with Habitat Acquisition
In a significant move to solidify its position as a leading player in the Spanish residential market, Neinor Homes, a leading listed residential developer, has entered into an agreement with Merak, a holding company controlled by funds managed by Bain Capital, to acquire a 10% stake in Habitat. This strategic acquisition comes alongside an agreement where Neinor will provide development and management services for Habitat’s ongoing projects and land bank.
This deal marks the largest transaction completed by Neinor since 2021, showcasing the company’s commitment to expansion and its ambitious growth strategy. Habitat, a prominent homebuilder with a substantial land bank of approximately 8,000 units, further strengthens Neinor’s leadership in the Spanish market.
This strategic partnership will see Neinor, together with its strategic partners, manage a combined land bank of over 25,000 units, boasting an appraisal value exceeding €2.5 billion. This acquisition also underscores Neinor’s successful implementation of its strategic plan, which emphasizes optimizing its balance sheet while pursuing equity-efficient growth. Since March 2023, the company has successfully signed five partnership agreements with prominent entities like AXAIM, Orion Capital, Urbanitae, Octopus Real Estate, and Avenue Capital, securing over €500 million in funding.
A Transformative Deal for the Spanish Residential Sector
Borja García-Egotxeaga, Neinor Homes’ CEO, highlighted the transformative nature of the deal, stating, “This deal is bound to transform the growth paradigm in the Spanish residential sector, where in recent years existing platforms haven’t been able to scale meaningfully. Today, thanks to our dealmaking and execution capacity we are strategically positioned to seize growth opportunities in ways that are highly accretive to both shareholders and co-investors.” He further emphasized the positive impact of the expected strong Spanish macro-economic environment in the coming years, which will act as a tailwind for Neinor’s growth.
Jordi Argemi, Neinor Homes’ Deputy CEO and CFO, further elaborated on the strategic implications of the deal, stating, “This transaction marks a breakthrough in the execution of Neinor’s Strategic Plan as it accelerates both the timing and scale of our JV business, whose value is yet to be priced by the market.” He highlighted that Neinor has already exceeded its initial expectations with €1.2 billion in Assets Under Management (AUMs), demonstrating its ability to generate significant returns for its investors.
The acquisition of the stake in Habitat underscores Neinor’s commitment to strategic partnerships and its ability to attract leading investors like Bain Capital. This move signals a significant expansion of Neinor’s footprint in the Spanish residential market, positioning the company for continued growth and profitability in the years to come.
