The group financial Solventis has announced its project to invest 100 million euros to build 600 rental housing affordable housing in the Balearic Islands.
This independent financial group, with more than 20 years of experience, specializes in investment banking, asset management and other financial services. In one of its projects it has launched the so-called Fondviso socially responsible investment fund. It is a project that plans to raise up to 650 million euros, for the construction of 12,000 affordable rental homes in Spain over the next ten years.
Of this economic amount, the fund plans to build 600 homes in the Balearic Islands. The project will be developed through public-private collaboration.
According to Solventis in a press release, the new fund will make a direct investment of 100 million euros in the Balearic Islands. However, the project has a global investment of 2,000 million euros.
It is estimated that at least five percent of the portfolio of this investment fund will be allocated to the Balearic Islands, which is one of the autonomous suffers from the greatest deficit of affordable rental housing.
The economic fund aims to contribute with this investment to the program of the Conselleria de Territorio of the Balearic Government, which is offering town councils to cede land for the construction of public housing for affordable rentals.
Company sources assure that Fondviso’s objective is to “accelerate the creation of an affordable and sustainable public rental housing stock throughout Spain”.
Toni Bosch, director of alternative real estate investments at Solventis, emphasized that “access to rental housing in the Balearic Islands requires a financial effort 30% higher than the Spanish average”.
Unique project in Spain
This Fondviso investment fund has been approved by the National Securities Market Commission and will be invested in creating affordable social housing infrastructure. This project is unique in Spain. The objective is to promote access to rental housing, lowering by 30% the cost of habitability of the tenant.
This new investment model transforms housing into a social infrastructure, similar to what happens with other facilities such as highways or the railway network. In this way, it contributes to the creation of a housing stock that will be able to provide a better quality of life for the tenantsthis new investment model transforms housing into a social infrastructure, similar to what happens with other facilities such as highways or railways.
This rental project is intended for families with a minimum income 28,000 to 45,000 euros. Currently, 35% of families living in rented housing in Spain spend more than 40% of their income on a home. Ehe objective is that these families can dedicate a maximum of 30% of their salary to renting a property.
According to the Solventis model, the administration does not make any investment to build these properties. It merely manages the rental of the apartments for a period of no less than 30 years, in exchange for a fixed annual fee as an availability payment. The administration only assumes the costs and risks of management with tenants, such as late payments. After this period, the infrastructure will become public property.
The investors, who are the initial owners of the infrastructure to be built, will earn an annual return in excess of 7%. These investors only assume the risk of building the buildings, betting on a project with a social impact, committed to the environment and the progress of society.
According to Toni Boschfondviso is a new socially responsible investment fund, which proposes collaboration between public administrations and the private sector as an effective formula for guaranteeing the right of access to housing, without impacting on public debt”.