Madrid, 8 October 2024 – Neinor Homes (“Neinor”) has acquired a land plot in the El Patriarca sector in the municipality of Cordoba for 21 million euros from a Spanish financial institution and other minority owners. The asset was in foreclosure condition and Neinor has been able to secure both an attractive price and a loan equivalent to 70% of the value of the land.

The asset comprises four land plots and has a buildable area of 45,000 sqm to develop 310 newly built homes. The land plot has a parcellation project fully approved and is only pending the registry to start urbanization works which are expected to be undertaken simultaneously with the beginning of construction works and the delivery of the first stage is expected to take place in 2027.

A long-standing development track record in Cordoba with +800# deliveries

Since 2017, Neinor has delivered more than 800 housing units across seven different projects such as Medina Homes, Azahar Homes, Zahir Homes, Oasis Homes, El Gran Capitan Homes and Patriarca Homes, which is scheduled to be delivered in 2024.

Neinor resumes own land acquisitions targeting highly opportunistic returns

As part of its Strategic Plan (2023-27), Neinor expects to deploy 1,000 million euros in new land investments until 2027, of which half are expected to be fully committed by Neinor and the remaining by its Strategic Partners. On the later, Neinor has been able to exceed its 5-year 500 million euros target through coinvestment agreements of 800 million euros in just 18-months together with AXA IM, Orion, Urbanitae, Avenue Capital Group and Bain Capital. Furthermore, Neinor it still has another 400 million euros to be deployed in the coming years where the majority is expected to be allocated in its Independent Senior Living strategy together with Octopus Real Estate.

During the year 2024, Neinor expected a total land investment of 40 million euros whose allocation was concentrated around the new investment vehicles with its Strategic Partners with the purpose of accelerating the growth of its joint-venture business – an objective that has been met after the recent acquisitions with Urbanitae, Avenue Capital and Bain Capital.

All of this without undermining its shareholder remuneration objectives where in the coming 18-months Neinor is expected to distribute 290 million euros or 30% of the market cap….in addition to accelerate payments to investors after distributing 40% of the yearly target in the months of July and October

Borja García-Egotxeaga, CEO of Neinor Homes, has commented: “This acquisition is a natural step for Neinor as we have been able to secure an attractive payment structure in an area that we know very well and where we have delivered and sold hundreds of housing units in the last two years.”

Jordi Argemí, Deputy CEO and CFO, said: "With this acquisition, we decided to anticipate own land acquisitions expected within Neinor’s Strategic Plan (2023-27). This acquisition is a clear signal to the market that Neinor is ready to resume own land acquisitions despite our efforts to grow and gain scale quickly within Neinor’s JV business.”