Spanish home-builder Neinor Homes is to float on the Spanish stock market this month, marking a renewed confidence in the Spanish property sector which is continuing its path to recovery.
Neinor Homes, based in Bilbao and backed by U.S private equity firm Lone Star, specialize in acquiring land for development. It already has over 160 developments and more than 9,000 homes on its books, with a total value of €1.12 billion, according to Savills real estate valuation.
It will be the first time in more than ten years that a residential builder has entered the Spanish stock markets. Stocks will float at €16.46 per share, valuing the company at a healthy €1.3 billion.
Residential property construction is returning to Spain following the 2008 property crash which devastated the once thriving building industry. The development of new residential housing complexes is particularly evident in popular tourist areas, such as the Costa del Sol which has also seen a steady rise in the number of new villa projects.
The Spanish property market has experienced a number of upward trends, such as growth in property sales and prices as well as increases in new mortgage loans; confidence within the property sector is returning and Spanish real estate is once again an attractive investment option for developers.
Information sourced from: Reuters
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