Barings invests €70m in Madrid affordable build-to-rent

Global real estate investment manager Barings has finalised a turnkey agreement with Spanish affordable housing developer Aurora Homes.

Jose Carlos Torres

This agreement involves a forward commitment for Aurora Homes to develop 305 affordable Build-to-Rent (BTR) units in Los Cerros – Phase 2, a key urban development area within Madrid's Vicálvaro district. The total investment for this project is over €70 mln.
Under the terms, Aurora Homes, having acquired the land in 2023, will oversee the entire development process, from architectural design and technical management to urban planning and construction. Once completed in 2029, Barings will take ownership of the asset, incorporating it into its rental portfolio and managing the complex long-term. Construction is slated to begin in the first quarter of 2027.
This collaboration between Barings and Aurora Homes aims to increase the availability of high-quality, affordable rental housing in a strategic growth area of Madrid, addressing the current high demand and limited supply. The development, spanning nearly 24,000 m2, will offer 305 homes with one, two, or three bedrooms, along with parking and storage. The complex will also feature a swimming pool and communal gardens.
Sustainability and energy efficiency are central to the project's design, aiming for BREEAM Very Good certification. Modular construction techniques will be used to enhance efficiency, quality, and project timelines. 
José Carlos Torres, managing director, country head Iberia at Barings Real Estate, added: “Last year was a record year for Barings Real Estate in Iberia, with €310 mln transacted in our prime sectors in the living spectrum, from core to value add, as well as logistics, offices and retail opportunities. We are committed to maintaining a disciplined capital rotation while creating sustainable value for our investors in Spain, and this agreement supports us in this ambition.”
Aurora Homes CEO Ignacio Moreno added: “This agreement is a key milestone in our growth strategy, adding turnkey BTR projects which are well-aligned with both our development activity – including open market and social housing – and with cooperative management. This transaction with Barings evidences our capacity to design and deliver large-scale projects intended specifically as rental assets, with quality and efficiency standards that meet the criteria of institutional investors. We particularly appreciate Barings’ commitment in Spain to growing the supply of social housing and increasing the availability of residential properties in high-demand areas.”
This acquisition aligns with Barings' long-term investment strategy in the living sector, identifying Spain as a crucial market for this global trend. 
Aurora Homes currently has land to develop more than 1,800 properties in Spain, of which 1,300 are located in the Region of Madrid, largely in the new developments to the south-east of the city of Madrid.