- Avintia Inmobiliaria and Pecsa Real Estate have entered into a partnership with Palatino Residencial for one of Madrid City Council’s affordable housing lots.
- The agreement, reached in December 2023 and formalised in April 2024, grants the alternative real estate investment vehicle the right to manage the project for 45 years.
Madrid, 9 April 2024 The temporary joint venture (UTE), held equally by Avintia Inmobiliaria and Pecsa Real Estate, has reached an agreement with Palatino Residencial, an alternative investment vehicle promoted by Bankinter Investment and Vía Ágora, dedicated to the development and management of rental housing projects. Under the agreement, the UTE will be responsible for constructing one of the affordable housing lots awarded by Madrid City Council, while Palatino Residencial will manage the homes once construction is complete.
The lot, initially awarded to Avintia Inmobiliaria and Pecsa Real Estate, comprises five developments in Madrid city, with a total of 452 one-, two- and three-bedroom homes featuring extensive communal and leisure areas. The project will stand out for its modern architecture, high-quality finishes and the developers’ commitment to energy efficiency, in line with their values of sustainability and social responsibility. Its aim is to reduce environmental impact and provide a setting that respects natural resources.
From a financial and legal perspective, the transaction was supported by Banco Santander for financing, legal counsel from Andersen — led by Javier Lacleta and Claudia Martínez-Niño — and advisory services from TC Gabinete Inmobiliario. This new development strengthens the position of Avintia Inmobiliaria and Pecsa Real Estate as leading players in affordable rental housing, particularly in the Build to Rent (BTR) segment. As Roberto Campos Gómez de Figueroa, Managing Director of Avintia Inmobiliaria, noted, “This type of project reflects the confidence of investors and public authorities in the ability of our companies to develop and manage initiatives with significant social impact.” For his part, Ignacio Juan-Aracil Elejabeitia, CEO of Pecsa, highlighted the company’s experience in public-private partnerships, describing it as a historic opportunity to continue driving affordable housing projects in the years ahead.
This project forms part of Madrid City Council’s first tender for the construction of more than 2,000 affordable rental homes across 11 districts of the city. The Avintia Inmobiliaria–Pecsa Real Estate joint venture (UTE) was awarded lots 2 and 4, the latter assigned to Palatino Residencial for management. The homes will be rented at prices up to 25% below market rates, with rents capped at no more than 25% of household income, providing an innovative solution to ease pressure on the rental market. After 45 years of management, the homes will revert to the municipal public housing stock.
