The ICO grants Lagoom Living a €73 million loan to develop Sevilla Este, the largest affordable rental housing project in Andalusia

This new financing adds to the €59.3 million granted by the ICO for Distrito Universidad, bringing ICO financing linked to Lagoom Living projects to €132.5 million, with an investment volume of €230 million.

Lagoom Living, a real estate investment manager specialising in affordable rental housing, and the Instituto de Crédito Oficial (ICO) have signed a €73.2 million financing agreement for the development of Lagoom Living Sevilla Este, the largest affordable rental housing project in Andalusia and one of the biggest developments of its kind in Spain.

Promoted by Lagoom Living together with Seville City Council and EMVISESA, the project comprises 843 units —691 public housing units and 152 transitional units— and consolidates a public-private collaboration model aimed at expanding the supply of affordable rental accommodation.

The development has a total investment of €143 million, of which €26 million comes from Next Generation EU funds, managed by the Regional Government of Andalusia under the Recovery, Transformation and Resilience Plan (PRTR). ICO financing joins this financial structure, contributing to a strategic project for Seville and strengthening the capacity to mobilise public and private resources to generate new affordable rental supply.

Financial backing for a new residential model

With this operation, the ICO raises to €132.5 million the financing granted to Lagoom Living projects, following the €59.3 million allocated to Distrito Universidad, in Malaga. This second operation reinforces the relationship between both institutions and the ICO’s support for residential projects capable of mobilising investment and expanding the supply of affordable rental housing in Spain.

Javier Braza, CEO and board member of Lagoom Living, highlighted that “this new financing operation with the ICO is very significant backing for our model and for our capacity to develop large-scale affordable rental housing projects. Sevilla Este is a strategic project for Lagoom Living and for Seville, and having the support of an institution such as the ICO strengthens our ability to turn land and resources into concrete housing solutions for citizens.”

Javier Braza added that “financing is an essential piece in accelerating the generation of new affordable rental supply. Working with the ICO, together with the support of the Regional Government of Andalusia through Next Generation funds and the joint work with Seville City Council and EMVISESA, shows that combining capabilities is the way to tackle one of the main challenges our country currently faces.”

For his part, the president of the ICO, Manuel Illueca, noted that “this operation demonstrates the ICO’s firm commitment to driving the construction of affordable rental housing, mobilising investment through public-private collaboration. A commitment reinforced by the new instruments deployed under España Crece, which expand our capacity to finance projects that help increase the supply of affordable housing in our country.”

The Sevilla Este project, designed by HCP Arquitectos, is being developed under criteria of sustainability, energy efficiency and architectural quality, in line with the ESG principles embedded in Lagoom Living’s development model. The proposal is committed to contemporary architecture and to creating spaces and common areas conceived to encourage coexistence and build community, integrating the residential development into its surroundings and contributing to a new quality urban space for Seville. Construction started on 16 July and is being carried out by Sacyr. Once completed, Sogeviso will be responsible for managing the operation of the developments.

About Lagoom Living

Lagoom Living is a real estate investment manager focused on expanding the stock of public rental housing, an urgent need in the current residential market. It is advised by leading firms such as Gómez-Acebo & Pombo and Colliers International, which contribute to developing a professionalised model specialising in affordable rental housing.

Lagoom Living has a portfolio of 1,700 homes in Andalusia and is in a growth phase. Its business plan envisages the development of more than 3,000 new homes and the extension of its affordable housing model to new strategic markets. After consolidating its presence in Malaga and Andalusia, it is advancing its territorial development with new projects in Madrid and the Valencian Community, among other locations, where the need to expand the affordable rental housing stock is particularly significant.