Apollo Global Management is preparing a debt financing package of approximately €750m to support Neinor Homes SA’s proposed acquisition of rival Spanish developer Aedas Homes SA, in a move that could create the country’s largest residential property developer, according to a report by Bloomberg.
According to sources familiar with the matter, the alternative asset manager is expected to provide the lion’s share of the funding through a direct lending facility. The remainder of the financing is expected to be covered through approximately €200m in irrevocable equity commitments from Neinor’s existing shareholders, alongside available internal liquidity.
The transaction, if completed, would represent a significant step in the ongoing consolidation of Spain’s fragmented residential development market. Neinor disclosed on 27 May that it is in advanced discussions with Castlelake, which holds a 79% stake in Aedas.
A successful deal would see Neinor controlling the largest land bank in Spain – an increasingly strategic asset as developers seek scale in a market that has remained cautious toward large-scale new-build investments.
Neinor, whose market capitalisation stands at around €1.05bn – slightly below that of Aedas – has not yet made a formal offer, and discussions remain ongoing. Representatives for Apollo, Neinor, and Aedas declined to comment. Castlelake did not respond to requests for comment.
Should the transaction proceed, it would mark Neinor’s second major deal in less than a year. In September 2024, the company entered into an agreement with Bain Capital to acquire a stake in Promociones Habitat SA, including the management of its land assets.
The bid reflects Neinor’s ongoing strategic pivot announced in early 2023, with a dual focus on returning capital to shareholders and leveraging partnerships with institutional investors to fund development activity.
