Neinor Homes and Avenue Capital Group, a global investment firm, have signed a joint venture (JV) agreement to build up to 700 new build-to-sell housing units in an area called Lomas de Flamenco, which is in the municipality of Mijas, located between Malaga and Marbella.

The asset was fully owned by Avenue and, as part of the new joint venture, Neinor has reached an agreement to acquire a 20% stake. As part of the JV, Neinor will act as delivery partner, overseeing the project design, commercialisation, licensing, funding and construction. This agreement does not consider further land acquisitions.

The asset, called Lomas de Flamenco, has a ready-to-build status and Neinor is currently completing the urban infrastructure works, which are expected to be finalised by the year-end. The asset is located only a 25-minute drive from Malaga’s international airport, 35 minutes from Marbella and 15 minutes from Fuengirola.

New Strategic Plan targets €1bn investment in new land investments by 2027

As part of its Strategic Plan (2023-27), Neinor expects to deploy €1bn in new land investments through to 2027. €500mn of this €1bn is targeted to be committed by new strategic partners under Joint Venture structures with Neinor taking minority stakes, thereby allowing Neinor to pursue an equity efficient and sustainable growth strategy.

Since June 2023, Neinor has signed three build-to-sell (BTS) agreements with renowned investors such as AXA IM Alts, Orion Capital and Urbanitae raising €300mn. From these, Neinor has already acquired 4 land plots comprising nearly 1,000 housing units located in Madrid, Barcelona, Malaga and Alicante for a total investment of €100mn.

In July 2024, Neinor signed a fourth agreement with Octopus Real Estate to invest €200mn in the Independent Senior Living sector, reaching its 5-year target of €500mn in assets under management in just over one year. With the agreement with Avenue, Neinor has now exceeded its 5-year target.

Borja García-Egotxeaga, Neinor Homes CEO, commented: “This agreement further confirms the growth potential and scalability of Neinor’s joint venture model. In just over one year, we have already exceeded our 5-year target of €500mn assets under management, and we are continuing to work on our JV model to provide further visibility on Neinor’s equity efficient growth strategy.”

 Jordi Argemí, Neinor Homes’ Deputy CEO and Chief Financial Officer, commented that: "This agreement marks another breakthrough in the execution of our Strategic Plan as we were able to acquire an equity stake in an asset owned by a financial investor and leverage on Neinor’s operational and execution capacity to develop 700 new homes. With this acquisition, we are able to deploy capital immediately and thus accelerate execution. It’s a win-win proposition for both parties."