AEDAS Homes, a leading homebuilder in Spain, and King Street Capital Management, a leading global investment firm, have signed an agreement to invest up to €270 million of equity to develop new-build residential projects.
This new joint venture, in which King Street will take a majority stake, aims to complete and develop new-build homes for sale to the mid and high segments of key Spanish markets. In addition to contributing equity, AEDAS Homes will provide end-to-end development management services for all the projects, from design and marketing to construction and delivery to customers.
This agreement encompasses an initial investment of €150 million of equity in ongoing AEDAS Homes projects in the provinces of Madrid, Barcelona, Málaga, Alicante, Valencia, and Tenerife, comprising a total of around 700 units, and an additional target to invest a further €120 million in strategic growth into new residential projects in Spain. In total, projects developed through this joint venture could generate c. €900 million in revenue.
AEDAS Homes has delivered over 1,000 homes through co-investment ventures and development management agreements for third parties since 2021.
“This agreement advances our strategy of developing projects leveraging on third-party capital, which we have been doing for years”, explained David Martínez, CEO of AEDAS Homes. Over the past three years, AEDAS Homes has delivered over 1,000 homes through projects with family offices and institutional investors and is currently developing another 3,600 units for third parties. Mr. Martinez said that this agreement “will allow the company to diversify its sources of capital, further scale its activity, and continue generating value for shareholders”.
Paul Brennan, Partner and Co-Head of Real Estate at King Street, explained: “We are pleased to partner with AEDAS Homes to continue growing King Street’s global real estate footprint through this residential JV”. Mr. Brennan added: “The Spanish residential-for-sale market continues to demonstrate resilience, and we are excited to partner with the leading homebuilder in Spain in this new venture. We look forward to expanding our partnership with AEDAS Homes through continued opportunities across Spain’s housing market”.
AEDAS Homes has been advised by Deloitte and Gomez-Acebo & Pombo. King Street has been advised by Uría Menéndez, Allen & Overy and Almar
