Neinor Homes has recently announced, through a Relevant Fact submitted to the CNMV (the Spanish stock regulator), the acquisition of three fully permitted land plots in Tarragona and Valencia, valued in EUR 22.6m, making a total of 34,000 sqm, suitables for the development of more than 300 units.

These acquisitions have a projected gross margin of c. 28%, well above Company's targets; and were also funded with the JP Morgan bridge financing announced last week. They also complete c.90% of the advanced due diligence pipeline the Company when communicating the bridge financing.

The asset in Valencia is located at Benicalap district, a consolidated residential area of the city. It counts with a buildable area of c. 24,000 sqm, suitable for the development of more than 200 units. 

In this sense, the company already announced in Q1 the opening of an office in Valencia to conduct business in the Levante region. From there, the local team is working now by putting into production the regional land bank of c. 100,000 sqm or over 800 residential units, with one development already launched.

In Tarragona, Neinor Homes has acquired two land plots with a buildable area of c. 10,000 sqm, suitable for the development of more than 90 units. Both assets are located at Juan XIII sector, a residential area with lack of new product that is experiencing a strong demand, and marks the expansion of the East Division into a new market that now shows favorable dynamics.

These transactions increased the company total amount invested in land acquisitions reaching EUR 248m, having fulfilled this way a 100% of 2017 and 27% of 2018 targets, showing the Company's commitment to capturing market momentum.

In addition, these operations continue to show Neinor Homes anticipation of the recovery of regional markets strengthening the Levante Region adding prime land to Valencia's land bank; entering into a new sub-market in Catalonia (Tarragona), and two days after announcing the opening of Eastern Andalusia Region to seize the momentum in Malaga and the Coastal region.