Round Hill Capital acquires two newly developed Spanish residential-for-rent assets from Neinor Homes for c. €30 million

10 March 2025

  • Purchase made on behalf of Round Hill Capital’s flagship European Housing Fund “ERIF II”
  • The acquisition adds 147 residential homes to ERIF II’s growing European Living portfolio

Round Hill Capital, a leading global specialist real estate investor, developer and manager, has acquired a newly developed portfolio of two residential-for-rent assets in southern Madrid, Spain, for c. €30 million. The investment has been made on behalf of Round Hill Capital’s European Residential Income Fund II (‘ERIF II’), which now owns over 3,100 units across Denmark, Germany, Ireland, Spain, the Netherlands and Finland

Round Hill Capital acquired the portfolio from Neinor Homes which has guaranteed income at an occupancy rate of 98% in the first year.  Neinor Homes will also manage the properties, utilising its 30 years’ experience developing and operating residential for rent accommodation.

The assets are located in Parla, a municipality of southern Madrid which has a growing population of c. 130,000 residents with an average age of 37.3 years, presenting an opportunity to rent into a market characterised by high demand for good quality energy efficient rental homes. This dynamic has driven a rental growth of 6.6% per annum in Parla since 2015.

The first building offers 94 residential-for-rent homes, each with a corresponding number of storage units and parking spaces, while the second building comprises 53 rental homes, each with a storage room, and 60 parking spaces. The properties have strong environmental credentials, both achieving Grade AA energy certifications.

Michael Bickford, Founder and CEO of Round Hill Capital, commented: “The acquisition of this portfolio provides us with two high quality residential-for-rent assets which were only developed last year and are well located in southern Madrid. They produce day one income for our investors through a near full occupancy rental guarantee from the seller for the first year. The assets’ high sustainability standards allow us to offer a good quality, modern Living product to the growing and young population of Parla, while expanding our residential-for-rent portfolio in Spain, a market where we continue to see highly compelling opportunities. This is our second transaction of the year for ERIF II as we continue to deploy the dry powder on our balance sheet, pursuing opportunities both on and off the market at significant discounts to replacement costs.”