The Government of Madrid has awarded the sale of 3000 properties included in the Youth Plan of the Housing Institute of Madrid (HIM) to the investment fund Goldman Sachs-Azora for 201 million Euros, nearly 20% more than the starting price (168,9 million Euros).
As explained by the regional government in an announcement, the sale process of these properties awoke the interest of 10 investment funds that took part in the auction. The earnings obtained will go to social projects.
The Ministry of Transport, Infrastructure and Housing has stressed that the tenants of these properties will not see any change in their conditions, as they will keep the same rent and will be able to execute their right to buy at the price they already know.
The regional government calculates that this operation will generate around 170 indirect and direct jobs. The investing company will generate at least 30 direct jobs in the management and administration of the homes, garage spaces and trade premises included in the portfolio and also 70 indirect jobs in the management of services such as caretaking, security, maintenance and repairs of these properties.
On the other hand the operation of the 42 trade premises located in the ground floor of these buildings will allow the creation of at least another 70 jobs and will revitalize the neighborhoods where they are located, invigorating the business activity and increasing the commercial offer for the neighbors.
The nearly 3000 homes of the Youth Plan, divided in 32 developments located in 11 towns, are mainly one or two bedroom apartments with a maximum 70 square meters with rents between 370 and 520 Euros per month depending on the town and the size of the apartment. (…)
Apart from obtaining 201 million Euros, the government of Madrid will save 800.000 Euros annually that had to be paid for real estate tax and other municipal taxes for garbage, as well as the nearly 1,5 million Euros for the properties being repaired, works that will now be carried out by the investing company. (…)
Goldman Sachs, considered the first investment fund in the world, is a banking holding that invests in real estate assets and other related properties. Through the funds Whitehall, Goldman Sachs and its partners have invested more than 11.000 million dollars in residential assets all around the world and their property platforms include 252.000 units.