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Blackstone and Goldman compete for the 1500 subsidized properties in Madrid.

In this case, the US venture capital firm Blackstone and the US bank Goldman Sachs have been selected to compete in the final stage for a lot of 1458 subsidized homes of the Region of Madrid, managed by the Housing Institute of Madrid.

The properties are rented and are scattered throughout the whole region, as informed by Bloomberg.

The starting price of the lot being auctioned is of 67,2 million Euros. The properties, which are occupied in 94% present, however, a default rate of 21%. The operation is planned to be closed in November.

As announced by the Regional Government a few months ago, the operation will not affect the tenants of the properties, which will continue in the same conditions and an average rent of 200 Euros. 70% of the 1500 homes protected by the Housing Institute are rented and 30% are rented but with a purchase option and in both cases, the right of the tenant to buy the property at the agreed price will be respected.

The regional Government will also transfer 1588 garage spaces, 443 storage rooms and 45 trade premises in 12 municipalities in the region. (…)

The earnings of these operations will be destined to social policies, the Government announced. (…)