Fundviso. This is the name of the investment fund promoted by the independent financial group Solventis and aimed at promoting affordable rental housing through public-private collaboration. The objective is to capture up to 650 million euros to build 12,000 homes in the next ten years. It is aimed at institutional investors (with a minimum subscription of one million euros) and will offer a net annual profitability greater than 7%.
“It is a pioneering model in Spain. It allows administrations to obtain five times more homes for the public rental market offer than with the current model“explains Toni Bosch, director of alternative real estate investments at Solventis, who assures that the price of rental housing can be reduced by up to 30% thanks to the new fund.
But how does it work? The administration does not make any investment, but rather manages the rental of homes for a period of no less than 30 years in exchange for a fixed annual fee as payment for availability of the investment vehicle. The administration only assumes the costs and risks of management with the tenants. “It is an effective formula to guarantee the right of access to housing, without impacting public debt or public resources“, they explain from the firm. After the period of use, the infrastructure will become public property.
As for the investors (owners of the infrastructure), they invest in the construction of the homes, obtain the right to property and transfer the right of use to the operator. “They will only assume the risk of building the properties,” says Toni Bosch.
The roadmap of the new fund includes raise up to 200 million euros before the first quarter of 2024 and begin operations in the first half of the same year. Currently, the project is in the fundraising phase.
The homes will be built throughout Spain, although the bulk will be concentrated in six territories: Community of Madrid, Catalonia, the Balearic Islands, Andalusia, the Basque Country and the Valencian Community. The homes will be aimed at households with a minimum income of between 28,000 and 45,000 euros.