Junta de Andalusia failed to realize its public-private partnership plan to build 1,039 affordable rental homes. The regional government, through the Andalusian Housing and Rehabilitation Agency (AVRA) under the Ministry of Development, Regional Joint and Settlement, has tendered 13 plots to build 13 apartments for rent under the surface right formula, but no companies have been willing to do so.
The parcels included in the contract Cádiz (6), Huelva (4), Granada (2) and Malaga. The aim of AVRA is to transfer these lands to developers and investment funds who will be responsible for the construction of flats for subsequent leasing and management. for the next 75 years. According to real estate market sources, after no bid has been received, AVRA has one year to bid directly if any interested parties emerge.
The same sources state that the main reason why the Board was unable to run the project was: The number of operations is very tightEspecially in the current interest rate environment and despite receiving subsidies from Next Generation Funds. In addition, they state that it is. very small parties and very secondary positionsThis distracted potential investors.
They explain that they are working on new operations from the Joint Ministry of Development, Andalusia Junta Region and Housing, and that “options include: offer these games (Next Generation funds) to municipal buildings and they will help municipal housing companies build new structures on their own lands.” They also argue that since 2019, they have built 3,000 affordable housing through three calls from the project owners.
What happened in Andalusia is certain. Similarities to Valencia Community’s project with similar features. The manager of that area started the construction 17 municipal parcels, a total of 1,090 housesbut did not get an offer in the first bid. Later, in the latter and after a change in specifications, Urbania managed to get one of the funds and manager Visoren to bid for the contract.
Financing need
Operations similar to those proposed by the Andalusian Junta before the European Central Bank (ECB) increased interest rates would have been easier to succeed. The monetary policy regulator began tightening access to credit in March last year. also makes financing more expensive in such operations. For example, the first phase of Plan Vive (before the rise in interest rates), the Community of Madrid’s public-private partnership program, received the support of CaixaBank, which formalized a loan of 400 million at very low prices to successful bidders. low rates.
To counter this situation arising from the current macroeconomic situation, Prime Minister Pedro Sánchez, Official Credit Institute (ICO) will have 4,000 million Euros charged from European funds to finance such a project on “highly favorable and long-term terms”. However, no progress is known so far in this measure, which is the most demanded by the industry.
Definitely among the items of the New Generation funds, social rental housing construction in energy efficient buildingsA Grant of 50,000 Euros per property. These aids have been included in the tender of the Junta, the Málaga City Council or the Valencian Community, while others that have not yet implemented them, such as the Community of Madrid, will do so in the next tender. tenders.
Related news
HE Malaga’s town hall, managed to implement the public-private cooperation project in the past weeks. This Consortium awarded the construction tender on the territory of its own property. 530 properties. Two companies participated in the process: Culmia, controlled by the American fund Oaktree, and Life in LagoomHe was deemed worthy of the Real Estate Investment manager award specializing in housing at affordable prices.
Lagoom will be responsible for construction and subsequent management over the next 75 years. Company It will invest around 58 million euros. It will receive a grant of 26.5 million from the Next Generation funds. When the buildings are completed, ie before the end of 2026, a three-bedroom apartment will have to be rented for between 500 and 600 euros per month.