Aviva Investors & Layetana Living form partnership to develop residential Build-to-Rent portfolio in Spain

(London) – Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), and Layetana Living (‘Layetana’), a leading Spanish developer, announce the creation of a new partnership (‘the Partnership’) to develop a portfolio of sustainable build-to-rent (‘BtR’) homes in Spain.

The partnership, which will target a portfolio in excess of €500 million, has already secured its first development project under the advice of global property consultancy Knight Frank, acquiring a residential development in Barcelona.

The 71-unit scheme, located in the Sants district of Barcelona, is expected to be delivered at the end of 2023 and provide associated amenity space, a roof terrace and café. The site was purchased with the benefit of an existing licence and construction work has already commenced. Placing a strong emphasis on sustainability, including both embodied carbon and ongoing energy consumption of homes, the Partnership will ensure homes come with quality outdoor space for residents and technology provision fit for a low carbon future.

It is the second venture undertaken by Aviva Investors in the Build-to-Rent market and its first in continental Europe, following its partnership with Packaged Living which recently announced a deal to acquire and develop 195 affordable and energy-efficient family homes in the West Midlands region of the UK.

Future opportunities targeted by the Partnership will include both development and forward acquisition projects across major cities in Spain, with a core base in Madrid and Barcelona and a preference for locations with a core service offering and strong public transport links.

Aviva Investors and Layetana will establish a new operating brand under which assets will be managed, with operating services provided by Layetana.

George Fraser-Harding, Head of European Funds at Aviva Investors, said:

“We are pleased to be partnering with Layetana in the dynamic and evolving Spanish residential market, likewise to be extending our build-to-rent investment programme into continental Europe. It is exciting to have already secured our first project in the Catalonia region, where supply constraints and unaffordable prices are increasing rental demand. The Spanish market is one which complements our growing European portfolio well, and our focus on delivering an active equity investment to clients. We believe this approach will best-serve our investors, with returns which can better-reflect the changing risks and longer-term structural changes occurring across today’s real estate market.”

Santi Mercadé, CEO at Layetana, commented:

“The lack of rental supply across most markets in Spain is dramatic and there is huge pent-up demand seeking a quality, affordable product. Our partnership with Aviva Investors creates a platform which will seek to address this imbalance and deliver a portfolio of high-quality apartments priced at economical rents under a single brand which will come to be recognised for its high construction standards, affordable prices and extensive amenity space with a focus on outdoor provision.”

Stuart Osborn, Head of European Residential Investment Transactions at Knight Frank added:

“We are seeing real momentum in the BtR market in Spain, with investment volumes in the space set to double for 2022. This partnership not only demonstrates the long-term appetite for growth in BtR, but also confidence in the fundamentals which underpin the residential investment market in Spain by committing to deliver market leading professionally managed, institutional product.”

For more information contact:

James Morgan

Media Relations Manager

Steve Ainger

Head of Media Relations

Important information

The information and opinions contained in this document are for use by the financial press and media only. No reliance may be placed for any purpose on the information or opinions contained in this document nor should they be seen as advice.

The press release is provided on the basis that Aviva Investors Global Services Limited is not causing the communication of a financial promotion under exemption of the Financial Promotion Order, as Aviva Investors Global Services Limited has no control over the way in which an article based on this press release is prepared and published by the financial press and media.

Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”) as at 21 September 2022. Unless stated otherwise any views, opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.

Issued by Aviva Investors Global Services Limited, registered in England No. 1151805. Registered Office: St Helen’s, 1 Undershaft, London, EC3P 3DQ Authorised and regulated by the Financial Conduct Authority.

Aviva Investors 

Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 14 countries in Asia Pacific, Europe, North America and the United Kingdom with £232 billion in assets under management as at 30 June 2022.

AVIVA PLC

• We are the UK’s leading Insurance, Wealth & Retirement business and we operate in the UK, Ireland and Canada. We also have international investments in Singapore, China and India.

• We help our 18.5 million customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.

• We have been taking care of people for 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2021, we paid £30.2 billion in claims and benefits to our customers. 

• Aviva is a market leader in sustainability. In 2021, we announced our plan to become a Net Zero carbon emissions company by 2040, the first major insurance company in the world to do so. This plan means Net Zero carbon emissions from our investments by 2040; setting out a clear pathway to get there with a cut of 25% in the carbon intensity of our investments by 2025 and of 60% by 2030; and Net Zero carbon emissions from our own operations and supply chain by 2030.  Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action at www.aviva.com/sustainability

• Aviva is a Living Wage and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at www.aviva.com/about-us/our-people/

• At 31 December 2021, total Group assets under management at Aviva Group are £401 billion and our Solvency II shareholder capital surplus is £13.1 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.

• For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us    

• The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.

• You can follow us on:

• Twitter: www.twitter.com/avivaplc/ 

• LinkedIn: www.linkedin.com/company/aviva-plc 

• Instagram: www.instagram.com/avivaplc 

• For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva 

Aviva Investors Global Services Limited
St Helen’s, 1 Undershaft, London, EC3P 3DQ 

Phone          +44 (0)20 7809 6000
Fax                +44 (0)20 7489 7940
Web             www.avivainvestors.com 
Email           info@avivainvestors.com

Issued by Aviva Investors Global Services Limited, registered in England No. 1151805.
Registered Office: St Helen’s, 1 Undershaft, London, EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority and a member of the Investment Association.
Telephone calls may be recorded for training and monitoring purposes.