Caterina and Badi have agreed to merge to create the largest 'flex living' platform in Spain, with over €250 million in assets and the aim of exceeding 7,000 homes in four years.
The operation, still pending final closure, is backed by the two main shareholders of the new company: Meridia, which has controlled Caterina since 2023, and Barlon Capital, which invested five million in Badi in 2024. Both firms will lead a capital increase to finance growth, although the amount and valuation of the companies have not been disclosed.
Two complementary models
Caterina brings to the merger its experience in managing corporate apartments and entire buildings, as well as its relationship with institutional investors. Badi, for its part, contributes its technology, its established brand in room rentals, and its digital marketplace. The integration will cover the entire investment cycle, from product definition to marketing and resident care.
The ‘flex living’ market — flexible short and medium-term rentals — is booming in Spain. The merger creates an operator with over €250 million in assets under management and a platform aiming to exceed 7,000 operational units in the next four years, mainly in Madrid and Barcelona.
Support from the funds
Meridia entered Caterina in May 2023 through its Meridia IV fund, with a dual strategy: to invest in the company and acquire residential buildings for Caterina to operate. Since then, the operator has more than doubled in size. Barlon Capital injected five million into Badi in 2024 to boost Badi Plus, its direct management line of homes with renovations and included services.
Javier Faus Morros, asset manager at Meridia and advisor to the new company, highlighted:
“The operation combines two highly complementary platforms. Badi brings a strong B2C brand, organic demand from its marketplace, and proprietary technology, while Caterina contributes top-tier B2B operations, extensive experience in managing entire buildings, and established relationships with leading corporations.”
For his part, Javier Rubió, founder of Barlon Capital, added:
“The union of Badi's platform — with its brand, demand, and data — with Caterina's operational experience and a partner like Meridia lays the groundwork to scale to thousands of beds and make the group the strategic partner in Spain for institutional funds looking to invest in the 'living' sector.”
What it means for the sector
The merger creates a player capable of competing with large international operators in the flexible rental market, a segment that is increasingly attracting institutional investment. For property owners, the new platform offers a turnkey service: from renovations to rental management and maintenance. For tenants, it means access to fully equipped homes with flexible contracts, without the ties of traditional renting.
The next step will be the formal closure of the operation and the integration of teams and systems. From there, the company plans to accelerate the acquisition of new buildings and expand its presence to other Spanish cities. Investors interested in the 'living' sector will have a unique interlocutor with the capacity to manage large volumes of assets.
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