Round Hill Capital extends Spanish residential-for-rent portfolio with €25 million acquisition from Neinor Homes

09 May 2025

 

  • Round Hill Capital’s flagship European Housing Fund “ERIF II” has now deployed c. €125 million in 2025
  • The acquisition adds 122 residential homes to ERIF II’s growing European Living portfolio

 

9 May 2025 - Round Hill Capital, a leading global specialist real estate investor, developer and manager, has acquired two newly developed residential-for-rent assets in Guadalajara and Seville, Spain, for c. €25 million. Round Hill Capital has made the investment on behalf of its European Residential Income Fund II (‘ERIF II’), taking advantage of a relative hiatus in European investment markets to deploy c. €125 million for the fund already in 2025. ERIF II now owns ~3,400 units across Denmark, Germany, Ireland, Spain, the Netherlands and Finland.

 

Round Hill Capital acquired the portfolio from Neinor Homes, who will continue to property manage the Grade-A certified assets, utilising its 30 years’ experience developing and operating residential-for-rent accommodation.

 

The first asset, totalling 66 apartments with one, two and three bedrooms, is located in Bellavista, a well-connected neighbourhood less than 10 kilometres from Seville city centre. Seville is Spain’s fourth largest city with a population of over 1.5 million. Its residential market is characterised by increasing demand for rental homes, driven by home ownership affordability challenges, which has underpinned 5% year-on-year rental growth.  

 

Comprising 57 apartments, a mix of two and three bedrooms, the second property is in the residential-led Las Cañas neighbourhood of Guadalajara, part of the Madrid metropolitan area. Strategically located within the Corredor del Henares, Madrid’s main logistics-industrial axis and one of Spain’s most economically and industrially developed regions, Guadalajara’s population has grown at 8.4% per annum since 2015, whilst new home construction has failed to keep pace with household formation.

 

Kirk Lindstrom, CIO of Round Hill Capital and Fund Manager for ERIF II, commented: “The Spanish residential market continues to be characterised by both a shortage of good quality homes for rent, as development pipelines remaining muted, compounding the already acute home ownership affordability challenges. With strong demand from professionals and young families for sustainable, well-connected homes in established neighbourhoods in Spain’s high growth conurbations, the sector’s rental growth outlook is very compelling. Both properties are in submarkets dominated by homes-for-sale, and with a clear global demographic shift away from buying to renting, these assets are well positioned to benefit from this trend.

This is our third transaction on behalf of ERIF II in 2025, totalling €125 million, demonstrating both our high conviction in the residential-for-rent sector and the continued ability of our highly experienced teams to capitalise on ongoing market dislocation to source, and then execute, attractive investments.”

 

ERIF II is a Core / Core Plus commingled investment fund targeting housing assets in strong micro locations that exhibit positive demographic and macroeconomic trends, persisting supply/demand imbalances and strong transport links. The fund targets income producing, well-let, multifamily properties in European markets that exhibit strong macro-economic growth characteristics in supply constrained markets with an emphasis on high energy efficiency building characteristics. ERIF II is closed to new investors.