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

Neinor Homes announced Oct. 5 that it has sold a €110 million land portfolio in Spain to a new joint venture with Orion Capital Managers, the company's largest shareholder. Orion holds a 90% interest in the venture and Neinor holds 10%. The transaction is part of an accelerated asset rotation plan that the Madrid-based residential developer said has reached €260 million signed year-to-date, at a 17% premium to gross asset value (GAV) and a 42% gross margin.

Neinor Homes and Orion Capital Managers JV Structure

The portfolio comprises nine undeveloped residential land assets that originated with AEDAS Homes, the developer Neinor acquired earlier this year. The sites can support 1,097 homes and more than 107,064 square meters of residential buildable area, or roughly 1.15 million square feet. The transaction value is approximately €110.9 million, which Neinor rounded to €110 million. That equates to about €103,000 per planned home, a land-portfolio valuation rather than a completed-home price.

Roughly €81.9 million of the price is allocated to an eight-asset "Seed Portfolio," with €29 million allocated to the Valdecarros project. The eight Seed Portfolio assets are expected to transfer in December 2026 through a share deal, while the ninth is expected to transfer in 2027. Neinor's 10% stake implies an equity contribution of about €11 million.

Neinor said the land is not yet in development and is not scheduled for delivery in the coming years. The company will retain exposure to the projects through its equity stake and will earn management fees and a promote. AEDAS is expected to oversee design, permitting and construction.

Competitive Process Led by Alantra

The sale 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.

Neinor said it is monetizing the land at a premium to the acquisition cost of AEDAS and expects to deliver at least the profits assumed in its business plan, with cash flows brought forward by more than two years. The company described the structure as the same approach used with Joaquín Lorenzo and AXA in 2023 and earlier this year with Río Real and Stoneshield.

As part of a broader €400 million asset rotation plan for 2026-27 and its land bank optimization strategy, Neinor said it has up to €100 million of additional rotations under negotiation.

Neinor Homes Raises 2027 Guidance and Extends Outlook to 2028

Neinor said faster-than-expected execution improves its cash flow profile and allows it to upgrade the guidance presented at its April 2026 annual general meeting. The company reiterated its 2026 targets and raised its 2027 targets toward the high end of prior ranges.

• 2026: EBITDA of €240-260 million and net income of €120-140 million (€1.23-1.44 per share), unchanged. Notarization of Río Real remains pending.
• 2027: EBITDA raised to €260-280 million from €240-260 million; net income raised to €160-170 million from €150-170 million, or €1.65-1.75 per share.
• 2028: Guidance extended for the first time, with EBITDA of €260-280 million and net income of €160-170 million.

Neinor also said it will bring forward about 60% of its 2027 shareholder distribution target. The remaining roughly €80 million (€0.82 per share) of 2026 distributions is expected in December, and 2026 distributions now include a share buyback under which 1.65 million shares will be cancelled. Two 2027 distributions of about €70 million (€0.72 per share) each are moved forward to February and April/May. For 2028, the company targets distributions of €200-250 million, bringing total distributions over the next two years to about €555 million (€5.71 per share).

On leverage, Neinor expects net debt of €1,000-1,100 million by December 2026, an unchanged range that now absorbs the €50 million total share buyback, including the management incentive plan, and the full-year dividend target. It guides to €800-850 million by December 2027, 6% below company-compiled consensus of €881 million, and €550-650 million for 2028, 16% below consensus of €711 million.

Orderbook and Risk Management

Neinor reported a record orderbook of more than €2 billion, with 92% of 2026 deliveries, 84% of 2027 deliveries and 38% of 2028 deliveries pre-sold. Turnkey construction contracts are in place for more than 70% of 2028 target deliveries, and interest rate risk across corporate debt and development loans is hedged against Euribor above 3%. At first-half 2026, the company reported €119 million of EBITDA at a 17.5% margin and a 60% increase in its land bank.

Executive Comments

Jordi Argemí, Neinor Homes' CEO, said: "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. 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."

Mario Lapiedra, CIO and Deputy CEO of Neinor Homes, said: "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."

Spanish Residential Market Context

The deal comes amid strong investor appetite for Spanish residential assets. CBRE estimates Spain's structural housing deficit at more than 750,000 homes, and house prices rose 12.9% year over year in the second quarter of 2026, the fastest pace since 2007. Savills recorded about €3.85 billion of Spanish residential investment in the first half of 2026, roughly four times the prior-year volume and above full-year 2025 investment. CBRE said residential represented about 36% of total Spanish real estate investment at the start of 2026.

Conditions are not uniformly favorable. Cushman & Wakefield reported about 286,000 residential transactions through May 2026, down 3.51% from a year earlier, citing higher prices and tighter financing conditions.

Sources

Neinor Homes, "Neinor seals new €110mn JV, brings cash forward and improves guidance to 202": https://www.neinorhomes.com/en/news/neinor-seals-new-110mn-jv-brings-cash-forward-and-improves-guidance-to-202/