Culmia has reached a green financing agreement with Banco Santander, valued at 86.5 million euros, for the development of 871 homes included in the Affordable Housing Project promoted by the Madrid City Council. This agreement is broken down into two loans, one for each lot acquired, both backed by mortgage guarantees of the developments involved and with a term of up to four years.
The company was awarded lots 1 and 5 in the bidding process carried out by the Madrid City Council. These lots comprise a total of seven developments, totaling 871 homes and located in various neighborhoods of the capital: Valdebebas (Hortaleza), San Fermín (Usera), Atocha (Arganzuela), Peñagrande (Fuencarral – El Pardo), San Isidro (Carabanchel), Rejas (San Blas) and Los Ángeles(Villaverde).
The objective of the City Council's housing plan is to introduce approximately 2,200 affordable rental housing units onto the market. This will be done through the assignment of land under the surface right regime for a period of 45 years, destined for the development and construction of housing in a total of 25 plots distributed in 11 districts of Madrid.
The aim of the City Council's housing plan is to introduce approximately 2,200 affordable rental housing units.
As explained by Juan Carlos Urbano, CFO of Culmia, “We are very pleased with the closing of this transaction because it represents an important step in our goal of consolidating an adequate financing framework for the development of affordable housing, one of our main strategic axes".
Aditionally, Culmia was selected to develop housing within the framework of the Plan VIVE de la Comunidad de Madrid, being awarded lot 3 of the first phase and lot 2 of the second phase, representing a total of 3,800 homes for affordable rental and a total investment of 515 million euros.
For this financing agreement, Culmia was advised by Cuatrecasas, while Watson Farley & Williams represented Banco Santander in the transaction.
