The manager DeA Capital and the Harrison Street fund will invest 300 million euros in two housing projects for rent (build to rent) in Valencia and Seville that will place it with 1,000 homes in Spain.
José María Xercavins, president of DeA Capital Real Estate Iberia, explained that the two groups have created a vehicle specialized in residential rental developments, called Magno Living, which has just bought a project in Quart de Poblet (Valencia) where it will develop 600 homes designed for rent, with the highest criteria of quality and sustainability. The joint venture already has two other build-to-rent projects in Camas and Entrenúcleos, in the Seville metropolitan area, with 441 homes.
Harrison Street is a Chicago-based fund specializing in real estate investments. The firm opened an office in Madrid in 2021, led by Javier de Castro, and is among the most active real estate investors in the Spanish market in the alternative sector. With its association with DeA, this firm is in charge of generating land and looking for projects, as well as supervising the development and management of assets.
DeA Capital is Italy's largest alternative asset management firm. Controlled by the De Agostini family, it has €26.5 billion of assets under management, including €12 billion in real estate investments.
The Spanish real estate management subsidiary, which has Koldo Ibarra as CEO, has already closed a joint venture with a US insurer to invest in logistics assets. This firm already has projects worth 150 million euros underway in Villaverde, Vallecas, Pinto and Torrejón de Ardoz.
José María Xercavins is also president of the Teleno Real Estate fund, which brings together the investments of Catalan family groups, and owns several office buildings in Madrid, 250 residential flats for rent and 120 tourist apartments. The businessman was also the promoter of the Tauro Real Estate fund, which managed more than 600 apartments for rent in Madrid and Barcelona, and sold in 2021 after doubling the capital in just four years.
Xercavins explained that rental housing is a very attractive product for investors, because demand remains high and in a context of economic crisis it allows risk to be diversified.
