Neinor Homes, a prominent player in Spain’s residential development sector, has reached an agreement with Merak, a holding company backed by Bain Capital, to acquire a 10% stake in Habitat. This significant move marks Neinor’s largest deal since 2021 and aims to enhance its position in the competitive Spanish housing market.
Under the agreement, Neinor will also provide development and management services for Habitat’s ongoing projects and its substantial land bank, which encompasses around 8,000 plots. This partnership enables Neinor to manage a combined land bank of approximately 25,000 units, with an estimated gross asset value exceeding €2.5 billion.
This acquisition comes as part of Neinor’s broader strategic plan (2023-2027), which focuses on optimising its balance sheet and pursuing equity-efficient growth. Since March 2023, the company has successfully signed five additional partnership agreements with various investment firms, including AXAIM and Orion Capital, collectively worth over €500 million.
Borja García-Egotxeaga, CEO of Neinor Homes, emphasised the transformative potential of this deal. He stated, “This agreement is set to change the growth landscape in the Spanish residential sector, where existing platforms have struggled to scale. Our strategic positioning allows us to capitalise on growth opportunities that will benefit both our shareholders and co-investors.”
The CEO also highlighted the expected robust performance of the Spanish economy over the next three years, which is anticipated to support Neinor’s growth trajectory. García-Egotxeaga indicated that Neinor’s equity story is evolving, shifting from offering the highest dividend yield in the EuroStoxx600 to a phase of double-digit earnings growth.
Jordi Argemi, Deputy CEO and CFO of Neinor Homes, reiterated the significance of this transaction, describing it as a breakthrough in executing Neinor’s strategic plan. He noted that the deal accelerates the growth of Neinor’s joint venture (JV) business, whose value has yet to be fully recognised by the market.
With assets under management reaching €1.2 billion in just 18 months, Neinor has exceeded its five-year targets, deploying approximately €50 million with a goal of achieving over 25% internal rate of return (IRR). Argemi expressed satisfaction with the partnership, stating that the innovative structure of the deal has earned Bain Capital’s trust, solidifying Neinor’s role as its primary partner in Spain.
As Neinor continues to expand its influence in the Spanish residential market, the collaboration with Bain Capital and Habitat is expected to generate significant opportunities for growth, particularly in a landscape that demands scalable solutions in residential development.
In conclusion, this strategic acquisition positions Neinor Homes for sustained growth, further solidifying its status as a leader in Spain’s evolving housing sector.
