Bain Capital signs €700mn Joint Venture agreement with Neinor Homes

• Neinor Homes has reached an agreement to acquire a 10% stake in Bain Capital’s Habitat Inmobiliaria 
• It forms a new €700mn JV with Bain Capital through which Neinor Homes will develop and manage Habitat’s real estate assets

London – September 23, 2024 - Neinor Homes (“Neinor”), the leading listed residential property developer in Spain, today reached an agreement with Merak IMS, S.L. (“Merak”), a holding company controlled by funds managed by Bain Capital, to acquire a 10% stake in Promociones Habitat, S.A. (“Habitat”) and enters into an agreement where Neinor will provide development and management services to Habitat’s ongoing developments and land bank.

At the end of June, Habitat had a land bank with the capacity to develop c.8,000 residential housing units. Of the total land bank, Habitat has nearly 50% launched with c.4,000housing units in different stages of development, of which c.2,200 units are currently under construction or completed and 1,939 units are already sold.

As part of the deal, Neinor will provide services to a high-quality land bank. Madrid represents c.3,500 housing units or 44% of the total land bank, located in key areas such as the new southern-west developments of Berrocales, Ahijones and Valdecarros, but also located in high growth areas located to the east of the city, such as Retamar de la Huerta and Brunete. 

Borja García-Egotxeaga, Neinor Homes’ CEO comments that: “This deal is bound to transform the growth paradigm in the Spanish residential sector, where in recent years existing platforms haven’t been able to scale meaningfully. Today, thanks to our dealmaking and execution capacity we are strategically positioned to seize growth opportunities in ways that are highly accretive to both shareholders and co-investors. Additionally, the expected strength of the Spanish macro in the next three years is set to act as a tailwind clearly playing into our advantage.” 

Ali Haroon, a Partner at Bain Capital said: “Our residential housing strategy is closely aligned with our firmwide thematic investment approach to create lasting value. With demand for housing growing across Spain, we believe there is a significant opportunity to develop high quality housing for the high concentration of households seeking the dream of homeownership. Bain Capital is a global player in the real estate business with significant investments and a clear investment strategy in the Spanish market. We have a solid track record in focusing on value-add real estate assets, enabling us to successfully deliver for investors.”

Jordi Argemi, Neinor Homes’ Deputy CEO and CFO says: “This transaction marks a breakthrough in the execution of Neinor’s Strategic Plan as it accelerates both the timing and scale of our JV business, whose value is yet to be priced by the market. Moreover, we are extremely pleased that with an innovative structure, we've been able to earn Bain Capital's trust as its main partner in Spain, reinforcing our ability to manage their platform and maximise returns.”

Nikolay Golubev, a Partner at Bain Capital commented: “We look forward to building upon this partnership with Neinor and leveraging our deep industry expertise to deliver quality housing in Spain. In the seven years since we acquired Habitat, we have created 5,498 units in a market facing a real shortage of residential housing, a strategy making a big impact across the homebuilding sector.” 

* For the full regulatory announcement please refer to Neinor’s webpage 

About Bain Capital

Bain Capital is one of the world's leading private multi-asset alternative investment firms that creates lasting impact for our investors, teams, businesses, and the communities in which we live. Since our founding in 1984, we've applied our insight and experience to organically expand into numerous asset classes including private equity, credit, public equity, venture capital, real estate and other strategic areas of focus. The firm has offices on four continents, more than 1,750 employees and approximately $185 billion in assets under management. To learn more, visit www.baincapital.com.

About Neinor Homes

Neinor Homes is the leading residential property developer in Spain, with a land bank to develop c12,000 homes, and a GAV to June 2024 of €1.5bn. This land bank is located in some of the fastest growing regions with the best economic fundamentals in Spain: Madrid, Western and Eastern Andalusia, Levante, Basque Country and Catalonia.  Neinor is a fully integrated and well-established residential platform of scale in Spain, covering the entire development value chain from land buying, planning and urban management, product design, delegated development and construction, sales and marketing and rentals. We are committed to creating and delivering attractive risk adjusted returns for shareholders through our disciplined capital allocation strategy and our excellence in operations and risk management. We are the only listed residential property developer with a multi-sector strategy to market in Spain, and our strategies include Build-to-rent (BTR); Build-to-sell (BTS); and the largely untapped senior living rental market in Spain, which we are progressing. Neinor’s operational excellence, investment strategy and results achieved since 2019 have enabled us to deliver on our 5-year business plan, launched in March 2023, in a sustainable and capital-efficient manner. This plan combines a €600 million shareholder remuneration plan and an investment of €1 billion in new opportunistic land acquisitions, half of which are expected to be undertaken in joint ventures with strategic partners through co-investment agreements, with a +20% IRR target. We offer shareholders attractive risk adjusted returns in a country where there are strong and sustainable supply and demand fundamentals and supported by a resilient macroeconomic environment and outlook. Spain remains one the most attractive and safest residential markets worldwide, with one of the lowest ratios of new supply per capita globally since 2007.