Property Developers Launch Mega-urbanisations: Inside the Largest Residential Projects in Spain

Currently, in Spain, ten macro-urbanisations are being built with more than 300 units each. Large property developers such as Neinor, ASG and Stoneweg are behind these projects, which also include homes for rent.

Until the end of March, the date on which Covid-19 brought the habitual performance of almost every activity in Spain to a standstill, there were more than 4,800 new construction projects underway across the country, comprising 131,471 homes, according to data from the real estate big data platform Brainsre.

Of those more than 131,000 homes under construction, more than half form part of so-called large developments, i.e. projects with more than 50 units. That means that almost 800 macro-projects, comprising 75,630 homes, are being built to respond to the shortage of existing new build homes on offer. This has been reflected in the price trends, which have been growing at a faster rate than the prices of second-hand properties.

Of the 789 large developments in progress, ten contain more than 300 units. These are unique projects, located in large cities such as Madrid, Barcelona and Valencia, but there are also examples in Málaga, Bilbao and Tarragona. Together, these ten macro communities will comprise a total of 3,729 homes.

The ‘Twin Towers’ in Madrid

This is one of the most iconic real estate projects currently being constructed in the capital, in addition to being a key residential venture. It is the Skyline project and it consists of two skyscrapers that the high-end property developer Stoneweg is building in the Tetuan neighbourhood, in the north of Madrid. It will comprise 600 homes in total.

“It is a twin tower development. One of the towers is intended for sale to individuals and is being marketed by CBRE – it comprises 303 units. The second tower has been sold to M&G Investments and will initially be used for rental housing”, explains Diego Montojo, analyst at Brainsre.

With prices ranging from €300,000 to €645,000, construction work began during the first quarter of 2020 and is expected to last until the beginning of 2022. “The building work was halted by Covid-19 but no changes are currently expected to be made to the key delivery dates; in terms of the effect of coronavirus on reservations, there have been no cancellations,” says Montojo.

The largest rental project in Spain

Just one of the ten projects containing more than 300 homes is dedicated entirely to rent. That is the Barcelona Sants residence, owned by Becorp -the real estate agency created by the property developer Corp and Scranton, the investment vehicle owned by the Grifols family. It comprises 421 apartments for let. “This project is still under construction – the building work started during the second quarter of 2018 and the keys are due to be delivered in early 2021. The homes are not yet on the market,” according to the analyst at Brainsre.

Becorp’s Barcelona Sants project.

Becorp’s complex will have 12 floors and 3,956 square metres of common areas, along with swimming pools, a wellness area and coworking centre.

Neinor, the ‘king’ of the large projects

Another project comprising more than 400 units is the Sky Homes development being constructed by the listed property developer Neinor Homes in Valencia. The company led by Borja García-Egotxeaga currently has more than 960 homes under construction in the Community of Valencia, of which 417 correspond to a single project, with an investment of €86 million. “The construction work on this project started during the fourth quarter of 2019, after the license was obtained in September; the delivery of the keys is scheduled for the end of 2022”, explains the analyst from Brainsre.

Sky Homes by Neinor.

Nor is it the only major project Neinor Homes currently has underway. The company, which had almost 5,000 homes under construction until all building work was suspended by the Government, has two other developments amongst the largest in Spain. They are Bolueta Homes, in Bilbao, comprising 328 units. That is the sixth largest residential project under construction in the country. Work started there during the second quarter of 2019 and with prices starting at €235,000, this macro-project is due to be completed by the end of 2021, according to its developers.

The ninth and tenth largest developments in Spain also bear the seal of the Basque property developer (which has its origins in the real estate portfolio of Kutxabank). The ninth largest is Amara Homes, in the Madrilenian municipality of Las Rozas, comprising 316 homes. Work started on that project at the end of 2019, and with prices starting from €353,100, the company has already managed to sell 295 units. In addition, the firm is developing another project in Malaga (Hacienda Homes), comprising 308 homes and involving an investment of €65 million.

Neinor Homes had planned to deliver between 1,700 to 2,400 homes in 2020.

Project King, from ASG Homes, with 363 lofts.

Meanwhile, the Madrilenian town of San Sebastián de los Reyes is home to the fourth largest new home development in Spain: King, comprising 363 apartments. Its promoter, the company ASG Homes, started work on this macro-project last September, with the aim of completing it in early 2022. The project comprises 363 lofts whose prices start from €157,900. “To date, they have sold about 30,” says Diego Montojo.

Also in Madrid, with 334 homes, the only project carried out under a cooperative system, is ranked in fifth place, namely, Residencial Maravillas. Located in the financial centre of Madrid, a stone’s throw from Paseo de la Castellana and Nuevos Ministerios, this project has been underway for several years since Domo Gestora was awarded the land where the old Artillery Precision Workshop was located in late 2014 for €111 million.

After various legal problems obtaining the building permit, due to complaints from environmental groups, these 334 homes, which have already been assigned to the cooperative members, are expected to be completed in the third quarter of 2021.

Behind the remaining two large developments are two new property developers: AQ Acentor and Kronos Homes, which are building the AQ Turianova development, in Valencia, comprising 324 homes; and The Kube, in Tarragona, with 318 units.

In the case of the first, which is the seventh largest development under construction in Spain, 324 units are currently being built, although AQ Acentor’s plans contemplate the construction of 1,200 homes in total. Of those, 544 homes will be social housing properties. “It is a new neighborhood that is being developed in the area. The part of the development called ‘Arcos’ corresponds to private housing and the part called ‘Riodeva’ corresponds to subsidised housing (VPO),” says Montojo. With prices starting at €159,900, the building work was due to start in February 2020 and 30% of the homes have already been sold.

Meanwhile, The Kube project, by Kronos Homes, in Taragona, is the eighth largest residential project. Designed by the DNA Architects studio, 98 of the 318 homes it will comprise have already been sold. “They are deferring payments for customers who have made reservations. For 3 apartments that were about to be reserved, a discount of €20,000 euros has been applied on the condition that the buyers go ahead with their reservations during this lockdown period. In theory, they are not planning to lower their prices, since they were actually planning to raise them in a few months time,” says the analyst from Brainsre.


Serprocol Acquires Plot of Land in Madrid for €3 Million

19 November 2019 – Serprocol has finalised its acquisition of a plot of land at Calle José Basbastre 10 in Madrid for more than three million euros. The real estate cooperative plans to build a 26-unit development with two to three bedrooms and an underground garage.

The firm obtained financing from Stoneweg, which recently launched a €50-million fund for financing real estate deals.

Sales for the flats at Calle José Basbastre 10 began during the last quarter of 2018 and are expected to continue through to the second quarter of 2020. By the end of last month, Serprocol had already sold 69% of the flats (18). The 5-floor apartment building will have a shared solarium and spa on the terraced roof.

Original Story: Eje Prime

Photo: Idealista

Adaptation/Translation: Richard D. K. Turner

Stoneweg Sells a Penthouse for €5,550/M2 in Tetuan

15 October 2019 – Stoneweg has just sold a flat in one of the two high-rise apartment buildings it is building in Tetuán, Madrid. The Swiss firm managed to sell one of the penthouses for a record sales price of 5,500 euros per m2.  The two 25-storey towers are located at Paseo de la Direccion 246.

The three-bedroom penthouse, which a total surface area of ​​195 m2, sold for 60% above the average price for the district of Tetuán. The price is even above the average for the district of Salamanca, the most expensive in Madrid, at 5,148 euros per m2.

Original Story: Idealista

Adaptation/Translation: Richard D. K. Turner

Stoneweg Extends Financing Worth €50 Million to Serprocol

10 September 2019 Stoneweg has signed an agreement with Serprocol, a real estate development cooperative, extending a line of financing worth 50 million euros for investing in the acquisition of land over the next 18 months.

Serprocol has more than thirty years of experience in the sector, having delivered more than 800 homes. The firm is currently developing another 650 properties.

Original Story: Idealista

Photo: Stoneweg

Adaptation/Translation: Richard D. K. Turner

Atlético de Madrid Sells Last Plot of Land by Former Stadium

5 August 2019

Atlético de Madrid has finalised the sale of the last of the three plots of land it owned by its former stadium in the Mahou-Calderón area of Madrid. The football club chose to sell the land to Vivenio for approximately 75 million euros.

The 6,544-m2 plot of land, denominated RC4, has a residential building area of 27,000 square meters. Vivenio, a socimi controlled by the Dutch fund APG and Renta Corporación, intends to develop rental housing on the property.

Original Story: Expansión – Rocío Ruiz

Adaptation/Translation: Richard D. K. Turner

Pryconsa and SVPGlobal in Talks to Acquire Land from Atlético de Madrid

30 July 2019 – Richard D. K. Turner

Pryconsa, the Colomer family’s developer, and SVPGlobal, which owns the Benidorm highrise, are bidding to take the last of the three plots being sold by Atlético de Madrid’s Operación Calderón. The first two plots of land went to a joint venture by Azora and CBRE GI, in a deal worth just over 100 millions of euros.

Stoneweg’s partnership with Hines had been seen as likely to win the bidding for the last plot of land, but an unexpected offer from Vivenio and the Dutch fund APG surpassed their bid at the last moment. Talks with Vivenio subsequently broke down when the firm was unable to secure the necessary financing.

Somewhat late to the party, Strategic Value Partners (SVPGlobal) and Pryconsa have both also now also expressed interest in submitting bids. The firms are analysing the asset, which Atlético de Madrid is selling for €3,150/m2. Bids are expected this week.

If neither of the two manages to reach an agreement with the football club, Atlético de Madrid is expected to go back to Stoneweg-Hines and Vivenio for final proposals, looking to finalise a deal shortly.

Original Story: El Confidencial – Ruth Ugalde / Elena Sanz

Stoneweg Nears Sale Residential Tower in Tetuán to M&G

July 2019 – Richard D. K. Turner

The Spanish-Swiss investment group Stoneweg is nearing the conclusion of the sale of one of two planned luxury residential towers in Madrid for 125 million euros to M&G Investments. Last year, Stoneweg acquired the land from Dragados, where it plans to build the two 25-floor towers, one with flats for sale and the other for rent. Shortly after, the firm created a partnership with M&G Investments to develop the project.

Construction on the project, known as Skyline, will begin in the second half of this year. Total investment in the development is expected to reach 200 million euros. The towers will have an area of ​​26,390 square meters and include common areas with gyms, gardens and a swimming pool.

Original Story: Idealista

Vivenio Socimi Set to Acquire Plot of Land from Atlético Madrid

1 July 2019 – Richard D. K. Turner

Vivenio seems to have beat out Stoneweg at the last moment in the race to acquire a plot of land on sale by Atlético Madrid. For weeks, Azora has been known as the likely buyer for two other plots of land, with a total of 40,5000 m2. The plots, known as RC7 and RC8, have views of the Manzanares River.

A third plot of land, RC4, was still up for grabs and the developer Stonweg was leading the race to acquire the land. Vivenio, a socimi owned by APG and the Renta Corporación increased their offer at the last moment. Atlético expects to make a final decision this week, with closing expected shortly thereafter.

The sale of the three plots of land is expected to bring in roughly 180 million euros to Atlético’s coffers. Vivenio is likely to develop residential housing for rent on its parcel, which has a total buildable surface area of 28,481 square meters.

Original Story: El Confidencial – Ruth Ugalde

Stoneweg is the Favourite to Acquire Atlético de Madrid’s 3rd Plot in Operación Calderón

31 May 2019 – El Economista

Earlier this week, it was announced that Azora, one of the largest rental home managers in the country, is set to buy two of the three plots that Atlético de Madrid has up for sale as part of Operación Calderón. Now, it has been revealed that the favourite in the running to acquire the third plot is the real estate firm Stoneweg, founded by Jaume Sabater and Joaquín Castellví.

Stoneweg will reportedly team up with a partner for the operation and will to dedicate the plot to rental homes. These types of projects are gaining weight in the capital in light of the high demand in the market, which has caused prices in some areas to soar. In fact, Azora is also planning to dedicate some of its two plots to rental housing.

Stoneweg is an expert in the rental home market with a portfolio of 10,000 rental units in the USA. In Spain, the firm operates through Stoneweg Living and has 10 developments in Barcelona, 9 in Madrid and 7 in various locations along the coast.

It is understood that Atlético de Madrid wants to complete the sale of all three plots before the end of June, as the club’s year-end is 30 June. The proceeds will represent a significant capital injection, which will allow AM to pay off some of its debt and buy more players over the summer.

Original story: El Economista (by Alba Brualla)

Translation/Summary: Carmel Drake

AXA Negotiates with ACS to Build 2 Office Blocks on Paseo de la Dirección in Madrid

29 May 2019 – Eje Prime

The insurance company AXA is holding negotiations with the construction company ACS to build two office buildings on plots that it owns on Paseo de la Dirección in Madrid.

The towers would be similar in height to the residential skyscrapers that Stoneweg is planning to build on the same street. They would include restaurants and shops, which would serve to regenerate activity in the Tetuán neighbourhood.

Original story: Eje Prime 

Translation/Summary: Carmel Drake