The controversial Housing Act, passed by the government last week, has put so-called large property owners or large homeowners in the eye of the hurricane. However, a report by real estate consulting firm CBRE shows that there are hardly any large landowners in Spain. Specifically, it confirms that they are a minority, because They only have 100,000 units.5% of the market among mutual funds, banks and insurers. This rate is much lower than other countries in the European Union such as Germany (34%) or France (23%).
Who are the big landlords?
CaixaBank, largest host
Caixabank Has 16,002 rental houses, with updated data up to March of this year. All these properties are managed by Servihabitat. The property is the Building Center company, which aims to divest “the entire property portfolio from the group under criteria of financial rigor and value maximization,” as described on its corporate website.
black stone
After the bubble burst, Blackstone became one of the most active funds in rental flat purchases. Some of their investments, such as insurers, are channeled through the Socimi corporate regime, an internationally common tax formula that benefits from 0% corporate tax but requires them to be listed on the stock exchange. profits through dividends.
The company made numerous acquisitions in the years after the crisis. Fidere currently has around 5,500 homes. The company is known for spearheading the purchase of 1,860 apartments from the Madrid Municipal Housing and Land Company (EMVS), an operation that has been highly criticized in the political arena but was legally sanctioned by the Madrid County Court last year. Recently, Fidere has successfully completed its debt refinancing.
in 2019 Blackstone completes acquisition of Testa Homes, the largest rental housing platform. According to data provided by the company, currently about 10,360 properties can be rentedafter closing several sales in recent years.
What other funds have housing?
Spanish manager duration He was one of the pioneers of betting in the professional rental market. Since 2004, it has created a portfolio of 7,500 rental apartments. It will increase to 9,000 in 2024on its twentieth anniversary. Currently controlled by the fund CBRE IM and Nestar (formerly Lazora).
Deutsche Bank’s mutual fund manager, dws, has a portfolio of 1,550 apartments, 330 of which are for rent and the rest are under construction. His biggest purchase was a deal with contractor Gestilar to build 1,100 homes, for which he paid 250m euros. To these should be added the 1,763 residences under construction from Plan Vive, a public-private partnership project. DWS bought them for about $250 million. In total, his portfolio reached 3,313..
viveniusDutch fund CLOSED and Australian Be awareThere are 4,250 flats in operation and 1,750 flats under construction. They will add 750 more by the end of this year. Although they plan to invest 700-800 million more in the next two years, the value of their apartments is 1,400 million euros.
lower Catella Asset Management has 2,300 homes in completed buildings, all already for rent, occasionally buying from developer companies. Its last operation was a building of 148 subsidized houses in Villa de Vallecas, although its portfolio has spread to Madrid, Barcelona, u200bu200bValencia, Seville, Vitoria and Pamplona.
Spanish Rental Housing Corporation known as SA answer is one of the largest landowners of Spanish capital in the sector. Approx. 2,228 The houses and the founding family are owned by the Catalans Vaque Boix and Banco Santander. The Company is traded on the Perpetual Market, although it operates very cautiously.
Temporary PropertiesThe former real estate agency that created Sareb is another of the big owners. According to the corporate website, Has 2,370 rental propertiesafter the owner TPG fund sold its assets to individuals in recent years.
lower B Capital Partnersbased in Barcelona There are 2,025 rental housesAccording to data compiled by Atlas Real Estate in early 2022. It then bought 600 more from Testa in November of last year, reaching 2,625, a data the company has not confirmed. nor the background CerberusAfter the bubble burst, many non-performing loan portfolios reported the number of properties they owned. Atlas puts it at 1.661a number that could be significantly higher.
future homeowners
There are several funds that make up a large portfolio of rental homes. Undoubtedly the most important Ares Management and its subsidiary in Spain Avalon Features. Although this company also operates very cautiously, it has been operating in our country since 2019 with two strategies: buying new construction buildings waiting for renovation from developers and those already built. As confirmed, there are 3,000 homes purchased. In addition, they are acquiring several plots of land in the Community of Madrid, where they will build 3,500 houses, which will begin to be leased at the end of this year and throughout 2024. The company’s total portfolio exceeds 7,500 units.
In addition to Nestar, Azora is building a new 8,000-home platform in partnership with Singapore’s sovereign wealth fund GIC. The intention of both partners is to invest 1,500 million over the next ten years. Currently, Brisa company has 2.000 houses which are in different stages of development.
lower Nuveen Real Estate and promoter Kronos Houses They have them, Kal. intent Build a portfolio of 5,000 homes before 2025It will reach a value of 1,000 million euros. Currently, 336 are operational and 590 are under construction, of which 451 will begin receiving tenants before the end of the year.
Spanish Lar Group and the French primitive Another of the alliances developing their own platforms. They currently have 518 units in operation and will reach 680 homes in 2023. There are 1,760 apartments in various stages of development with an approximate value of 450 million Euros. Final destination Reaching 5,000 homes across Spainall new construction.
Deutsche Finance International Another of the companies that have created their own portfolio of rental apartments, as explained by EL PERIÓDICO DE ESPAÑA from the Prensa Ibérica group. In his case, he doesn’t build them from scratch, but instead picks up small pieces from various properties. your intention To have 5,000 houses by the end of 2023 And it’s already halfway through the target. All operations are expressed through Socimi and its manager Niding, listed on Paris Global Pielago.
insurers
Insurers have also positioned their investments towards rental housing. Such companies seek a small return, but with little adjusted risk. They are also companies with very low cost of capital which makes them go for easier returns. French Axa and German Allianz are the two teams that make the biggest bets.
Insurance company Axa, through its investment arm AXA Investment ManagersAt the end of 2022, it had 2,244 active homes in Spain. To these should be added the houses that have been purchased and will be delivered in the coming months. Reaching 4,032 units, as confirmed. Two companies, some of which are listed on the French stock exchange, Aref Thalassa and Core are located in Spain.
Allianz has invested a lot in rental housing. In June 2021, Socimi, which owns 421 homes in Madrid and Barcelona, bought Elix Vintage for 140 million. In March 2022, it purchased 245 apartments for 185 million from Blackstone in Madrid’s Chamartín district.
housing developers
Developers also have their own rental strategies. Some, such as Aedas Homes or Metrovacesa, chose to sell a complete building on a turnkey basis. Others, such as Neinor Homes or Vía Célere, have chosen to develop a large portfolio to collectively transfer a large portfolio into a large fund and maximize the return they can generate.
supporter Via Celere and the American fund Greystar has a portfolio of 2,400 homes under construction. This portfolio is being promoted and built by the organizer, who last March decided to sell 55% of the fund for 400 million euros. Greystar sources indicate that 1,611 will start taking home ownership this year, 985 in 2024 and 284 in 2025.
Neinor Homes has 4,600 rental homes under construction, as described in the latest results presentation. Of these, 542 are already in operation and 1,324 are under construction. The remaining 1,331 have been “launched”, including the Habitatge Metropolis Barcelona project, where Neinor will promote properties in a public-private partnership with Cevasa, Barcelona City Council and the Metropolitan Area. Rental at a price below market.
public sector
Public Administrations are, for the most part, large shareholders. For example, sareeMore than 50% controlled by the State, 8.225 flats in different rental models: 4,100 at market prices, 2,150 in social leases and 1,975 assigned to council and the communities that rent them, but the ‘bad bank’ retains ownership of the asset. It also aims to increase its social contracts to 10,000-14,000 units and build 10,000 to 15,000 flats for affordable rental with private companies.
This Madrid Municipal Housing and Land Company (EMVS)those who had to sell their houses in order to pay their debts during the crisis. 6,615 owned homes, according to data published on the corporate website. This Community of Madridthrough Social Housing Agencyowner Social housing stock consisting of 22,377 housesWhen you add those that are under construction, that are occupied without a title deed, and those that are in the judicial process, it rises to over 25,000.
According to the Ministry of Transport’s data for 2020, a large number of communities with dozens of social rental homes also stand out: Andalusia (49,794), Basque Country (23,874), Canary Islands (17,253), Catalonia (15,910), Extremadura (13,500), Asturias ( 10,464 ), the Commonwealth of Valencia (10,020) or Castilla La-Mancha (5.395).