14 October 2019 – Locare RE and Tectum Real Estate Investments are preparing to launch a new €240-million fund aimed at the affordable rental housing market. The new fund, Tectum II, comes hot on the heels of a similar, €120-million fund the two firms launched just a few months ago. The investments come at a time when foreign investment and rising real estate prices, especially in Spain’s major cities, are driving families further out of city centres.
The first fund allowed the two firms to acquire seven plots of land, enough to build 1,000 affordably priced rental homes in the Community of Madrid. The plots of land are located in Torrelodones, Villalba, Móstoles, Arroyomolinos, Valdemoro (two plots) and Alcalá de Henares. The fund expects monthly rents to cost between 500 and 900 euros per month.
Short-term plans for Tectum II aim to start advertising approximately 1,500 new rental homes already in 2020.
Original Story: El Confidencial – E. Sanz / C. Hernanz
Adaptation/Translation: Richard D. K. Turner