ASG Homes Signs Lazora’s SAIV for Major Spanish Build-to-Rent Project
9th December 2021
• Substantial residential complex in Seville to be delivered by ASG Homes in early 2024
• SAIV project results from ASG Homes opening its platform to third-party institutions
• ASG Homes delivers large investment-grade BTR assets to meet strong institutional demand
(Madrid) 9th December, 2021 – ASG Homes, one of Spain’s largest residential developers, has signed a turnkey project with a subsidiary of Lazora, one of the first and largest Spanish institutions to invest in the country’s residential rental market, to deliver a 439-unit apartment complex in Seville’s most fashionable suburb. The build-to-rent (BTR) transaction with Lazora’s Sociedad Anonima Inmobiliaria Vascongada (SAIV), is among the largest in Spain this year.
ASG Homes, established in 2017 by ActivumSG Capital Management to develop residential investment projects in Spain for its funds and third parties, broke ground on the site in the city’s Sevilla Este district last month with IBEX 35-listed Acciona as the construction contractor. SAIV will lease the apartments itself and manage the block following the handover by ASG Homes, scheduled for the first half of 2024. The terms of the transaction are not being disclosed.
Víctor Pérez Arias, CEO of ASG Homes, said: “Our project with SAIV highlights a step change for us in diversifying into BTR and serving third party institutional clients alongside funds managed by our parent company. We have been able to achieve this thanks to our successes in developing for-sale condominiums in Spain’s most dynamic cities. The Seville project showcases how we can deliver the investment product institutions want and help Spain’s under-supplied BTR market to develop.”
The SAIV project consists of a block of mainly one- and two-bedroom rental apartments built around an internal courtyard featuring landscaped gardens and a communal swimming pool. The 37,000 square meter apartment complex has been designed t0 target a “very good” BREEAM sustainability rating. It will offer residents underground parking and feature facilities including a fitness center, a playground and a co-working center.
It is the penultimate phase of the Sevilla Este development master planned by ActivumSG for its fifth real estate fund, the owner of the plots. ASG Homes has already completed the Argos apartment block development adjacent to the SAIV project’s site while construction of its neighboring Argos II complex is currently under way. Both of these for-sale condominiums are investments by ActivumSG Real Estate Fund V.
ASG Homes will deliver a total of 600 homes this year, in Seville as well as in Valencia and Madrid, with a pipeline of 1,500 units either for sale or BTR projects for institutional investors. The company also manages 5,000 dwellings elsewhere in Andalusia, Alicante, Catalonia, Madrid, Salamanca and Valencia.
ActivumSG funds have been actively acquiring development sites since 2017, mainly off-market from owners in distressed circumstances or from their creditors. All are in high-growth cities in Spain where there is insufficient supply to meet the strong demand to buy or rent housing. ActivumSG has earmarked some of its residential projects for Spain’s nascent BTR market, in recognition of institutional investors’ growing demand for income-producing assets. A year ago, ASG Homes announced the creation of a separate BTR investment vehicle for institutions to access the Spanish market.
Brian Betel, ActivumSG’s Head of Direct Transactions in Europe, said: “Institutions cannot find the investmentgrade stock they require, which is holding back the development of Spain’s BTR market. With its enviable track record and expertise ASG Homes has a strong pipeline of projects to address this need. Ground up developments are just one strand of our funds’ pan-European residential strategies, which include lending, building conversions and the corporate acquisitions we have made in Denmark, Germany and the Netherlands.”
SAIV is a subsidiary of Lazora, the Spanish institution that pioneered investment in the country’s residential rental market and built a portfolio of more than 8,500 units. Lazora and SAIV’s strategy is to meet rising demand in Spain’s main cities for affordable new rental homes of good quality which offer a full range of services and amenities. In the second half of 2021 SAIV expects to have acquired 1,326 units under its build-to-rent (BTR) program, including its project with ASG Homes and other investments scheduled to close by the year-end.
ActivumSG Capital Management Ltd. is a Jersey-based private equity investment manager which focuses on special situations in real estate markets. It has raised more than €2.0 billion in initial equity commitments for the six closed-end funds it has established to date. ActivumSG looks beyond direct property investments to access compelling real estate themes, demonstrated by its corporate acquisitions and finance strategies. ActivumSG’s experienced local teams source opportunities across a wide range of sectors with significant underlying value, which they realize through hands-on asset management and crystallize for investors once assets are ready for ownership by global institutions or listed companies. ActivumSG is regulated by the Jersey Financial Services Commission. For more information, visit the website at http://www.activumsg.com
Media contacts for ActivumSG:
Simon Packard, Headlion Consulting +44 7701 089844