(London) – Aviva Investors, the global asset management business of Aviva plc, announces it has grown its Spanish build-to-rent (‘BTR’) portfolio by acquiring a residential development site in the Paterna municipality of Valencia, Spain. The project will be managed by Propia, a dedicated real estate operating company (‘REOC’) launched in June as part of a partnership between Aviva Investors and Layetana Living, a leading Spanish residential developer.
Situated in the Los Molinos district of Paterna, the scheme is expected to deliver 120 units when complete, split between one- and two-bed units, and spread over 11 stories. Designed and constructed with energy-efficiency being a prominent consideration, the building will target a BREEAM ‘Excellent’ rating and an EPC rating of ‘AA’. It will feature a broad range of amenities for residents, including an on-site gym, co-working space, a residents’ swimming pool and children’ play area.
It is the sixth investment by Aviva Investors in Spain’s residential market as part of its Spanish BTR platform and the first in the Valencian region, following investments across Madrid, Barcelona and Palma de Mallorca. The platform has now funded the development of more than 1,100 apartments with a gross development value (‘GDV’) of more than €350 million since launching in 2022.
Propia, which will be responsible for the ongoing management of the new development, has been designed to provide greater agility and control over investment activity, and will oversee the sourcing, development and operational management of rental housing across a number of Spain's core residential markets.
James Wells, Director at Propia, said:
“This milestone in Valencia marks a significant step in our shared vision with Aviva Investors to redefine urban living across Spain. Through Propia, we are not only delivering high-quality, energy-efficient homes, but also creating vibrant communities with services and amenities that reflect the evolving needs of modern renters. We are proud to bring our development expertise to this exciting new chapter, as we seek further projects in the Valencia region as part of our ongoing acquisition strategy across Spain.”
George Fraser-Harding, Head of Pan-European Funds, Real Estate, at Aviva Investors, said:
“We are very pleased to expand our build-to-rent programme in Spain through this first investment in Valencia, which also adds geographic diversification to the portfolio. Valencia is a dynamic and vibrant city, with a rental market characterised by strong fundamentals, good levels of income growth and positive net yields. We think that makes it a really compelling place to invest and is a fitting location for our Spanish build-to-rent platform, which we believe can improve the quality of service provided to residents, drive long-term value and, ultimately, help to support better outcomes for our investors.”
