Neinor Homes, S.L.U. and its subsidiaries – a leading Spanish property development group – has announced its intention to launch an offer of ordinary shares to qualified investors.

Specifically, the company has declared its intention to apply for its shares to be admitted to trading on the Madrid, Barcelona, Bilbao and Valencia Stock Exchanges, and to be included in the Spanish Automated Quotation System (Sistema de Interconexión Bursátil) (Continuous Market).

The offer will comprise a primary offering of new shares launched by the company and a secondary offering of existing shares, which will be launched by the company’s current shareholder – Neinor Holdings, S.L.U. – controlled by funds managed by Lone Star.

The group is mainly engaged in the development of multifamily homes in Spain, which are intended as primary residences and targeted to customers in the middle-to-upper-middle market segment. Moreover, the company operates nationwide and focuses on sub-markets where there is burgeoning demand for new build homes.

The firm focuses mainly on four geographic areas within Spain, with a structural shortage of new build housing, and where prices recorded annual increases in the region of 7.5%-9% to September 2016 (according to the Spanish National Institute of Statistics [INE]). The company’s registered office is in Bilbao and it also has offices in Madrid, Barcelona and Cordoba.

The group was created following the acquisition in December 2014 of Kutxabank, S.A. – a real estate developer with 26 years’ experience in the construction of homes and an experienced team of ca. 80 professionals – by funds managed by Lone Star.

The scope of the transaction also included a portfolio of prime development land, a portfolio of real estate assets, and a 7-year management and maintenance agreement in relation to Kutxabank’s property portfolio.

A world-class team of 200 professionals

Since its acquisition by funds managed by Lone Star, Neinor Homes has gathered 75 new plots for which, at least, the land subdivision project has been approved. The company has further strengthened its increasingly growing team of 200 professionals, and implemented an industrial business model based on three key tenets:

Institutionalised approach – owing to the fact that all its transactions are governed by international best practices, which include strict corporate governance policies, process systematisation, technology relevance across all stages of the value chain, moderate levels of leverage, and a financial perspective to influence on decision-making.

Product definition via the identification of certain key elements included in their homes, that make them stand out from other market competitors.

Putting customers at the heart of all of the company’s decisions; ultimately, customer satisfaction is a core element in Neinor Homes’ business culture.

One of Spain’s largest portfolios of land for urban development

Neinor Homes owns one of the largest portfolios of development land in Spain, which comprises 161 residential schemes and 9,086 homes. As at 31 December 2016, the company’s gross asset value amounted to €1.120bn and gross development value was at €2.548bn.

Such land portfolio will enable meeting 100% of handovers scheduled for 2017 and 2018, and 80% of handovers scheduled for 2019. In addition, and in order to comply with the group’s business plan until 2021, it is estimated that the company will only be required to buy new land worth €380m.

Neinor Homes’ development business is currently in the ramp-up phase and is expected to reach full capacity in 2020, when the company anticipates to hand over an annual approximate figure of 3,500 to 4,000 homes.

In the words of the company’s CEO, Juan Velayos, this official announcement marks a key milestone for Neinor Homes.

“The IPO has always been an option considered by Neinor Homes – it has been embedded in the company’s DNA since its inception in 2015. From the very beginning, we have chosen to comply with the highest standards of corporate governance and professionalisation, on the basis of rigour, transparency, and discipline of work and communication. Taking this step forward confirms that our differential business model works, and that we are in a position to mark a milestone in our plans that will help the company boost growth”, he said.