A&G Global Investors and Gestilar are to develop 288 affordable rental homes in Los Ahijones, in the Vicálvaro district of Madrid. The project involves an investment of around €70 million and will be located in one of the main urban development areas in south-east Madrid.
A&G will channel public and private institutional capital, while Gestilar will be responsible for the project’s promotion and development. The public funding will come from the vehicle A&G Real Estate Sustainable Developments SICC, whose resources originate from the Regional Resilience Fund, allocated by the European Investment Bank in July 2025 under the Recovery and Resilience Facility. The private capital will be channelled through various investment vehicles managed by A&G.
The development will be built on a plot with a buildable area of 24,065 sqm acquired from the sector’s Compensation Board. The complex will comprise 288 VPPL homes for affordable rent, storage rooms and parking spaces, with a total built area of approximately 35,000 sqm. Completion is scheduled for the first half of 2029.
The development will be situated in Phase 1 of Los Ahijones, an area where more than 18,000 new homes are planned, of which over 50% will be allocated to social housing. The area is located 10 kilometres from the centre of Madrid, with connections to the M-45 and M-50 motorways and close to the future extension of Metro Line 9.
“This project enables us to continue meeting our objectives regarding the development of sustainable, affordable housing solutions in areas with significant structural imbalances, thereby generating a greater impact”, noted Jaime Trigo, managing director of A&G Global Investors. He added that it’s important for the firm “to be able to manage both public funding and the necessary private capital investment from a single platform”.
Javier García-Valcárcel, chairman of Gestilar, stated that “this operation highlights the importance of collaboration between public authorities, developers and institutional capital to provide an effective response to the affordable housing shortage”.
The initiative comes against a backdrop of pressure on the residential market. Spain has a structural affordable housing shortfall estimated at around 220,000 homes, according to the Bank of Spain, compared with new housing production that falls short of half that figure. Over the last four years, this imbalance has generated a cumulative shortfall of over 600,000 homes, with a particular impact on large urban areas such as Madrid, according to the same source.
According to information provided by the companies, the public-private co-investment structure enables the mobilisation of more than €4.5 in additional investment for every euro of public funds committed.
A&G Real Estate Sustainable Developments has been managed by A&G since July 2025, following its appointment by the EIB as a financial intermediary to manage €130 million from the fund set up by the European institution using resources from the Recovery and Resilience Facility, which forms part of Spain’s Recovery, Transformation and Resilience Plan and is financed by NextGenerationEU. These funds are earmarked for affordable housing, urban regeneration and sustainable tourism projects in Spain.
