Lagoom Living, the real estate investment company specialized in affordable rental housing, and the Instituto de Crédito Oficial (ICO) have signed a financing agreement for the development of Distrito Universidad, the first smart city of subsidized rental housing in Spain. The operation is backed by the Ministry of Housing and Urban Agenda.
Thanks to this alliance, ICO will provide up to 59.3 million euros to Lagoom Living through the funds of the Recovery and Resilience Mechanism (RRM), a European Union financial instrument aimed at promoting sustainable and socially responsible projects within the framework of the Recovery, Transformation and Resilience Plan.
The agreement was signed by the president of ICO, Manuel Illueca, and the CEO and director of Lagoom Living, Javier Braza, who highlighted the importance of this financing to facilitate access to subsidized housing and boost the social and economic fabric of the city.
As part of this pioneering alliance, a site visit was made to learn about the development of the project. In attendance were the general director of Financing and Risks of the ICO, Antonio Cordero; the general director of Planning and Evaluation of the Ministry of Housing and Urban Agenda, Ana Berenguer; the regional minister of Development, Territorial Planning and Housing of the Regional Government of Andalusia, Rocío Díaz; and the mayor of Málaga, Francisco de la Torre; among other authorities.
Distrito Universidad: a benchmark model in subsidized rental housing
The Distrito Universidad project, located to the west of Teatinos (Málaga), contemplates the construction of 530 subsidized housing units for rent, with an estimated average price of 600 euros per month. Its innovative design focuses on sustainability, energy efficiency and the creation of a connected and socially responsible community.
At present, the construction work being carried out by Sacyr, Lagoom Living’s construction partner, has already reached 32% completion, ahead of the initially planned deadlines. The first phase of the R3 project will be delivered in February next year, R15 in May and R11 and R12 in June.
The CEO of Lagoom Living, Javier Braza, highlighted that “this collaboration with ICO reinforces our vision of an affordable, accessible, innovative and sustainable housing model. Distrito Universidad is a benchmark project that places Malaga at the forefront of subsidized housing in Spain”.
For his part, the president of ICO, highlighted that “this project of a social nature has financing from the European #NextGenerationEU funds, through the ICO Housing Line and with the 50% guarantee of the Ministry of Housing and Urban Agenda. The financing of affordable housing is a priority within ICO’s strategy and we are working hard to increase the stock of social rental or affordable housing and to improve the existing social housing stock, using public-private collaboration mechanisms”.
The Mayor of Malaga, Francisco de la Torre, stressed that the promotion of subsidized housing through public-private collaboration is proof that efforts can be joined to achieve a common goal. He also pointed out that the incorporation of the Official Credit Institute to finance the private part of the operation of the second phase of the University is great news for Malaga. This contribution joins the European funding achieved by the City of Malaga in a call that channels the Government through the Junta de Andalucía. He also recalled that the land on which Lagoom Living is building these 530 homes has been ceded free of charge by the Consistory, through a public tender, and is valued at 13 million euros.
The Councilor for Development, Territorial Planning and Housing of the Junta de Andalucía, Rocío Díaz, has stressed the importance of “collaboration between institutions” to promote public-private collaboration in the construction of housing. The 530 housing units in Malaga, said Rocío Díaz, are the result of this four-way agreement with an investment of almost 90 million euros, with a subsidy of 25.5 million euros from the Junta through the Ecovivienda Plan, the mechanism devised by the Junta de Andalucía for the management of European Next Generation funds in the field of housing.
The Councilor for Development, Territorial Articulation and Housing of the Andalusian Regional Government, Rocío Díaz, highlighted the importance of “collaboration between institutions” to promote public-private collaboration in the construction of housing. The 530 housing units in Malaga, said Rocío Díaz, are the result of this four-way agreement with an investment of almost 90 million euros, with a subsidy of 25.5 million euros from the Junta through the Ecovivienda Plan, the mechanism devised by the Junta de Andalucía for the management of European Next Generation funds in the field of housing.
A strategic collaboration to address the housing challenge in Malaga.
The signing of this agreement represents a milestone in the financing of subsidized housing projects in Malaga and Andalusia, being one of the first initiatives of its kind in the country, fostering the creation of sustainable, inclusive urban environments that respond to the growing demand for affordable housing. Distrito Universidad will not only offer efficient and accessible homes, but will also promote an innovative community model based on co-responsibility and social inclusion. With this agreement, the entities reinforce their commitment to the development of housing solutions that improve the quality of life of citizens and serve as a model for future initiatives nationwide.
