Neinor, Stoneshield Partner to Build High-End Houses in Marbella

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(Bloomberg) — Developer Neinor Homes SA and investment firm Stoneshield Capital, one of its main shareholders, are forming a joint venture to tap into demand for luxury real estate on the Spanish coast. 

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Stoneshield will take a 70% in the joint venture, with the partners making a €150 million ($172 million) initial investment to build 262 residences in the city of Marbella, according to a Neinor statement Tuesday. The project — Neinor’s first in the premium segment — will also include a private members club and a number of amenities.

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Spain’s real estate has seen a surge in demand in recent years due to a shortage of new builds and, to a lesser degree, an increase in demand for high-end residences in major cities and popular beach resorts, largely driven by foreign investors. 

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Nationwide, house prices jumped 18% in February from a year earlier, hitting an all-time high of €2,673 per square meter, according to listings website Idealista. In Marbella, prices are also at record high.

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Like developers across Europe, Neinor is betting that the war in Iran will lead to an increase in demand from Middle Eastern investors seeking to reallocate capital. 

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“Investors are really starting to think about Europe as a destination,” David White, head of real estate debt strategies for Europe at LaSalle Investment Management, said on the sidelines of the MIPIM real estate conference in Cannes this month. Europe’s real estate investment market could benefit from a redirection of capital as a result of the Iran War, he added. 

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Spain has the added attraction of its strong economic growth in recent years, which has outpaced most major European countries. It also enjoys relatively cheap energy prices given large amounts of renewable energy production. 

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“We are fully aware of the global geopolitical tensions reshaping capital allocation decisions, and Spain’s position in this context could not be more compelling,” Neinor Chief Executive Officer Borja García-Egotxeaga, said. “Cost inflation remains a challenge across European construction markets, but with the help of the Spanish administration mitigation programs, we are building robust mechanisms to manage input costs,” he said.

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Over the past three years, Neinor has formed joint ventures with several financial investors to develop real estate projects, while lowering its own cost of capital. Partners include AXA SA, King Street Capital Management and Bain Capital. 

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The developer also has a role in the consolidation of the Spanish real estate sector, having completed the acquisition of Aedas Homes earlier this month, and having bought a stake in Habitat, another rival, in 2024.

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Stoneshield is a major shareholder in Neinor, with about 19%, according to data on the Spanish markets regulator’s website.

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—With assistance from Macarena Muñoz.

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