Neinor Homes Forms €110 Million Land Joint Venture With Orion Capital Managers in Spain

Neinor Homes announced a €110 million land joint venture with Orion Capital Managers on Oct. 5, 2026, selling a portfolio of undeveloped Spanish residential land into a vehicle in which Orion holds 90% and Neinor 10%. The company said the transaction accelerates its asset rotation plan, brings cash flows forward and supports an upgrade to its financial guidance through 2028.

Orion Capital Managers is Neinor's largest shareholder. The portfolio comprises land not yet in development and not scheduled for delivery in the coming years, according to Neinor.

Neinor Homes and Orion Capital Managers Joint Venture Structure

The portfolio is valued at approximately €110.9 million, which Neinor's release rounds to €110 million. It covers nine land assets of Aedas Homes origin, capable of supporting 1,097 homes and more than 107,064 square metres of residential buildable area, or roughly 1.15 million square feet. The plots are in major Spanish cities and are aimed at the middle-market housing segment.

Eight of the assets, valued at about €81.9 million, are expected to transfer in December 2026 through a share deal. The ninth is expected to transfer during 2027. Aedas Homes, now an indirect subsidiary of Neinor, will oversee design, licensing and construction and will contribute the nine plots to the venture.

Neinor retains its 10% equity stake and will earn management fees and a promote on top. The company said it expects to deliver at least the profits assumed in its business plan, with cash flows brought forward by more than two years.

The transaction was awarded through a competitive process coordinated by Alantra, an independent adviser, which approached more than 30 investors. Neinor said Orion submitted the most compelling offer, supported by its knowledge of the Spanish residential market.

Asset Rotation Plan and Precedents

The joint venture is part of a broader €400 million asset rotation plan for 2026-27. Neinor said it has signed €260 million of rotations year to date, at a 17% premium to gross asset value (GAV) and a 42% gross margin. The land was sold at a premium to the acquisition cost of Aedas Homes earlier this year.

Neinor described the structure as the same approach it used with Joaquín Lorenzo and AXA in 2023, and earlier this year with Río Real and Stoneshield. The company also has up to €100 million of further transactions under negotiation.

"With this transaction we are rotating €110mn of land and while keeping a stake in the upside and earning fees as manager," said Mario Lapiedra, CIO and deputy CEO of Neinor Homes. "By co-investing alongside Orion and remaining fully aligned as manager and shareholder in the venture, we can bring these projects forward while using our capital more efficiently."

Lapiedra added that investor backing for the portfolio reflects the quality of the land and the strength of the company's development platform, and that such partnerships allow Neinor to maximise return on equity.

Raised Guidance for 2027 and New Targets for 2028

Neinor confirmed its 2026 guidance of €240-260 million in EBITDA and €120-140 million in net income, or €1.23-1.44 per share. For 2027, it raised EBITDA guidance to €260-280 million from €240-260 million and moved net income toward the high end of its range at €160-170 million, or €1.65-1.75 per share.

The company extended guidance to 2028 for the first time, with targets broadly in line with 2027: €260-280 million in EBITDA and €160-170 million in net income.

Net debt is expected at €1.0-1.1 billion by December 2026, an unchanged range that now absorbs a €50 million share buyback, including the management incentive plan. By December 2027, net debt is expected at €800-850 million, 6% below the company-compiled consensus of €881 million. For 2028, Neinor guides to €550-650 million, 16% below consensus of €711 million.

Shareholder Distributions

Neinor will pay the remaining roughly €80 million dividend (€0.82 per share) in December, bringing 2026 shareholder remuneration to about €280 million. The 2026 total now includes a share buyback program under which 1.65 million shares will be cancelled.

About 60% of the €250 million 2027 distribution target is being brought forward. Two payments of roughly €70 million (€0.72 per share) each are scheduled for February and April or May 2027. Neinor targets €200-250 million in distributions in 2028, bringing total distributions over the two years to about €555 million, or €5.71 per share.

"The challenge this year could not have been bigger: multiplying revenues, EBITDA and net income by 2x in the very same year we are integrating AEDAS," said Jordi Argemí, CEO of Neinor Homes. "Yet, barely six months after completing the tender offer, we have de-risked our business plan at an accelerated pace and today we come to the market with a guidance upgrade, faster deleveraging than planned and accelerated returns to our shareholders."

Forward Sales and Risk Mitigation

Neinor reported a record orderbook of more than €2 billion, with 92%, 84% and 38% of 2026, 2027 and 2028 deliveries pre-sold. Turnkey construction contracts are in place for over 70% of 2028 target deliveries, and interest rate risk is hedged across corporate debt and development loans against Euribor above 3%.

The transaction values the land at roughly €101,000 per planned home, based on the €110.9 million price and 1,097 units. That is a land valuation rather than an all-in development cost or completed-home value.

Market Implications

The deal reflects continued institutional appetite for Spanish residential development, which Neinor cited as a driver of its rotation strategy. By moving longer-dated land into a joint venture majority-funded by Orion, Neinor converts part of its land bank into cash while keeping exposure to the projects and fee income. The company said it has up to €100 million of further transactions under negotiation as part of its 2026-27 rotation program.

Sources

• Neinor Homes press release via GlobeNewswire, Oct. 6, 2026