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Santander Receives 200 Applications for Over €414 Million Under IFRRU 2020

16 March 2018

Santander Totta is analysing 200 applications for financing intentions under the IFRRU 2020 – Urban Rehabilitation and Revitalization Financial Instrument, for an amount exceeding 414 million euros.

“Of the applications, €178 million is destined for buildings intended for use in the short-term tourist rental market, and €130 million is for residential properties for the sales market. The remaining investments are for a variety of purposes, including public buildings, rental and commercial properties, and properties for own housing,” the Spanish bank reported in a statement.

The financial institution led by António Vieira Monteiro said 49 of the projects are in the Lisbon region, for a total of 220 million euros.

“The first financing agreement in the capital was signed last week by Santander Totta. This is a new housing project that will be built on the Rua do Ouro – Aurea 178 – in an estimated investment of 2.35 million euros. The contract is Santander Totta’s third out a total of four that have been completed under the auspices of the IFRRU. The first two projects are for investments in Madeira,” the bank stated.

The Spanish bank has made 713 million euros available to finance companies and individuals with urban rehabilitation projects, equivalent to 53% of the total. Of the amount mentioned, 375 million euros are Santander Totta’s own funds and €338 million come from the IFRRU 2020 program itself.

What is IFRRU 2020?

The program targets urban rehabilitation operations in Urban Rehabilitation Areas as defined by the municipalities, providing approximately 1.4 billion euros for investments.

The program was launched in October and comprises a financial instrument that is made up of mortgage loans and guaranteed loans from Mutual Guarantee Societies (MMS). These are intended to support urban regeneration and revitalisation projects and energy efficiency throughout Portugal in areas chosen by each municipality.

Original Story: Idealista

Translation: Richard Turner