Madrid, September 2021. Medan AM, a leading investment and asset manager in the Spanish real estate sector, and Partners Group, a leading global private markets firm, acting on behalf of its clients, announced today the creation of Nuva Living, a Joint Venture targeting €400m of investment capacity for Build-To-Rent (BTR) and Private-Rented-Sector (PRS) assets.
The vehicle, which has been launched through Medan AM, already holds a portfolio of approximately 200 homes and is expected to reach circa 1,500 units in the next 5 years. The objective is to fulfil the market demand for a quality-based, de-risked and diversified residential portfolio in the Spanish PRS market.
Nuva Living is expected to deliver a resilient and stable return profile in the next years through a diversification strategy focused on BTR and PRS, two segments that are currently poised to experience remarkable growth in Spain, as it is expected that the residential rental dynamics converge with other European countries over the next years. Indicators show Spaniards’ increasing preference for rental homes vs. owned homes, even during the pre-Covid economic recovery years, which will underpin demand growth for the asset class going forward.
The vehicle will capitalize on this trend, becoming a unique portfolio for institutional investors to have exposure to a bond-like yielding PRS portfolio of assets in prime locations, such as Madrid, Barcelona and other economically dynamic main Spanish cities.
Jaime Morán, Director of Medan AM said: “The opportunity to invest now in BTR and PRS assets in Spain requires a vehicle like Nuva Living, capable of capturing the tailwinds of the sector through liquidity-focused investments with specific portfolio characteristics in mind. Our strategic partnership with Partners Group is a fantastic opportunity to build on this thesis, as both of us share a common vision for the sector. We already have a portfolio of 200 homes and on our way to build up and reach 1,500 units in the years.”
Romain Ruiz, Member of Management, Private Real Estate, Partners Group: "Nuva Living represents a unique opportunity to assemble a portfolio of residential assets that are well located, of excellent quality and more importantly, affordable to renters. We continue to build on our strategy to invest in real estate assets benefitting from the transformative trends underlying the New Living gigatheme, providing amenitized housing in under-supplied markets. We are excited by this partnership with Medan AM, who have strong local expertise and share our vision for this strategy."
*Note: The original press release of this article names Medan AM as "Dunas Capital" since Medan AM was launched by former executives that come from Dunas Capital.
