Under the agreement, Aurora Homes, which bought the land in 2023, will deliver end-to-end development of the project, from architectural design, technical management and urban planning through to construction. Once the construction work is complete, Barings will acquire the asset and integrate it into its portfolio of rental assets, taking over long-term management of the complex. Construction is scheduled to begin in the first quarter of 2027, with the completed homes due for handover in 2029.

This project will see Barings and Aurora Homes help increase the supply of quality, affordable rental housing in a strategic growth area in Madrid, against a backdrop of growing demand and limited product supply.

The development, which spans almost 24,000 sqm of buildable land, will house 305 one-, two- and three-bedroom homes, with parking spaces and storage rooms. The complex features a pool and communal gardens. Sustainability and energy efficiency are front and centre in the project design, which will meet the criteria for BREEAM Very Good certifications, one of the highest international standards. The project will also include modular construction solutions to optimise efficiency, quality and timings.

This acquisition is consistent with Barings´ long term view on the living sector, and the Spanish market is seen as one of the key countries to take advantage of this global trend.  With different ongoing developments in residential build to sell, together with last year´s acquisitions in PBSA and flex living in Madrid, this new transaction represents the first step on affordable build to rent investment with a view to continue growing selectively in this asset class. 

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 €310M 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.”

This transaction cements Aurora Homes’ position as an industrial developer and operator for institutional investors in Build-to-Rent (BtR) social housing, affording technical discipline, delivery capability and a focus on affordable housing. Aurora Homes CEO Ignacio Moreno said: “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 availability of residential properties in high-demand areas.”

For the seller, this Build-to-Suit agreement underpins Aurora Homes’ commitment to growth and strengthens its position as a key player in Spain's affordable residential segment. The company 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.

Press enquiries Barings
Ben Monteith/Charlotte Coulson (SEC Newgate)
baringsRE@secnewgate.co.uk    

Press enquiries Aurora Homes
Grupo Albión. Tel. +34 91 531 23 88 
Sofía García Nieto sgarcia@grupoalbion.net 
Naiara Vaz Quintas naiara.vaz@grupoalbion.net
José García Villardefrancos jgarcia@grupoalbion.net 

Aurora
María Vicario mvicario@aurora-homes.es 
Mobile +34 660 25 60 30

About Barings Real Estate
Barings Real Estate (BRE) is a part of Barings and offers a broad range of global investment opportunities across the private debt and equity investment markets. BRE invests in all major property sectors and offers an expansive range of financing solutions to real estate borrowers.  Follow us on LinkedIn at linkedin.com/showcase/barings-alternative-investments. 

About Barings
Barings is a $481+ billion* global asset management firm that partners with institutional, insurance, and intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions. Learn more at Barings.com.

About Aurora Homes
Headquartered in Madrid, Aurora Homes is a real estate developer specialising in Build-to-Sell (BtS) and Build-to-Rent (BtR) properties in the affordable housing segment, as well as in cooperative management. Founded in early 2022 by Ignacio Moreno, a respected Spanish real estate professional with over 25 years’ experience heading up projects in Spain, the company has built a robust, unrivalled business model focused on designing and building quality, functional, affordable homes, guided by its unwavering commitment to facilitating access to housing and helping bridge the gap in the market. Its overarching purpose is to deliver a sustainable, scalable economic growth project in the areas where its projects are located.

*As of December 31, 2025