PSM to Bring to Trial the Sale of 1.860 Houses in Madrid

Madrid´s Socialist Party (or PSM by its acronym in Spanish) is giving the finishing touch to the legal action taken against the sale of 1.860 apartments transferred by Municipal Housing and Land Enterprise (Empresa Municipal de Vivienda y Suelo, EMVS) to an investment fund. The real estate transaction was closed in July last year and accounted for €128.5 million paid by Fidere (investment vehicle of Magic Real Estate-Blackstone Group International Partners). Except for the houses, the lot included 51 garages, 25 retails and two storage rooms.

The acquired flats are situated in Centro, Carabanchel, Villa de Vallecas and Villaverde districts. The investment fund paid around €67.000 for each of the properties.

The party claims the price for the subsidized units was understated and therefore the local government could have suffered a “property loss”.

Tenants of the houses subject to the dispute complain they have received notifications about a 40% rise in monthly payment and inclusion of the Property Tax. Originally, their contracts were of lease-to-buy nature with purchase option after 10 years.

At another, successful trial, PSM accused Madrid´s Housing Institute of selling at “bargain price” (€200 million) 3.000 houses to Azora.

Original article: El Mundo (by Marta Belver)
Translation: AURA REE

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