Delays Surround Spain’s Plan Viena for Affordable Rental Homes
Delays in Plan Viena, the public-private collaboration pushed by Sareb to attract private investors for building 10,000 to 15,000 rental homes on Sareb-owned land have stretched beyond six months. The holdups trace back to disagreements between Spain’s Ministry of Economy and the Ministry of Housing and Urban Agenda, among other issues, according to three market sources familiar with the situation and cited by ACTIVOS, the economic vertical of Prensa Ibérica.
Sareb, the so-called “bad bank”, is largely owned by the State through the Fund for Ordered Banking Restructuring (FROB). The national housing competencies, however, fall under the Ministry led by Isabel Rodríguez, which has argued for taking the lead on this program to expand Spain’s social and affordable housing stock, a core objective of the ministry.
Almost two years have passed since Sareb, created to manage assets from failed savings banks, awarded PwC nearly 238,000 euros to draft the plan documents and initiate a process to gauge investor interest in a project of this scale.
The Appointment of Carlos Cuerpo
All sources consulted, including some outside the real estate market, confirm the goal was to publish the plan documents in the first weeks of 2024. Yet, the initial departure of Nadia Calviño from Economics and the appointment of Carlos Cuerpo slowed progress. Paula Conthe, then chair of Frob, moved up to secretary of the treasury and had to appoint a new president to Sareb’s governing board, a role filled by Álvaro López Barceló.
For the Plan Viena to move forward, Sareb’s board must approve it, which requires the consent of López Barceló. Once the plan was understood and drafted (a draft had even circulated among potential investors), it had not yet been placed on the day’s agenda at meetings planned for June and in the near future.
A Battle to Lead the Plan
Investors familiar with the process say the delay stems from a struggle between the two ministries over who should chair the plan. Sareb depends on Economy, while Housing is charged with designing and executing national housing policy. “This is an internal problem,” one source commented, making autumn deployment unlikely. A realistic expectation is that the plan would not begin before September.
In its annual results presentation, Sareb stated the documents were ready to begin. President Javier Torres noted, “We have drafted the bid documents and contacted the European Investment Bank and potential participants. The plan is in an advanced phase and will soon launch the bidding. The first phase comprises 43 developments totaling 3,500 homes and an investment of 400 million euros.” Yet, two months later, progress remained stalled.
Two financial insiders confirm the team is still “working through the documentation,” though Sareb spokespeople said the main remaining task is defining the tenant profile eligible for the future homes. This is a minor point relative to the plan’s size, especially with a draft set of bid conditions already on the table.
Another real estate source suggests the Plan Viena could be entering a phase of “restructuring” to decide who will take the lead. The public land agency Sepes, under the Housing Ministry, is positioned to assume a leading role as the guarantor of housing access, according to Isabel Rodríguez. Sepes is driving several land development projects to create public housing across various regions, mirroring Sareb’s approach. This contrast highlights a core tension: Sareb must maximize asset sale proceeds to repay state-backed debt, complicating any move to simply hand over land to Sepes or Housing without a formal sale and a budget allocation to Isabel Rodríguez.
Finally, Sareb remains one of the few state-owned enterprises where the current government has preserved the leadership team. The president, Javier Torres, is a veteran state economist who spent three decades at Banco Santander and later served on Sareb’s executive board. The chief executive, Leopoldo Puig, has two decades of experience as a credit entity inspector for the Bank of Spain and as a financial officer at the FROB. The board’s continuity underscores a broader political commitment to maintaining leadership stability during this ambitious housing initiative.
Despite the ongoing talks within the cabinet about who should steer Plan Viena, the path forward remains intricate. Sareb’s mandate to maximize asset values means any transfer of land to Sepes or Housing would likely come through a sale, requiring a budget move to authorize the transfer. The plan’s future hinges on consensus within the government and a clear decision on governance, funding, and implementation timelines.
In plain terms, the core conflict rests on who is best positioned to deliver a scalable, long-term housing strategy while protecting public interests. The arguments touch the very heart of Spain’s housing policy: how to convert public land into affordable homes efficiently without compromising the state’s financial commitments. Stakeholders will watch closely as ministers, public agencies, and Sareb navigate a path that could reshape the country’s approach to public housing for years to come.