The company is specialised in purchasing buildings with right of use and focus its activity on retired senior citizens, who can continue living in their houses, obtaining liquidity by selling them to the REIT. This financial product allows the maintenance of a rental regime for as long as they wish, which could be for a determined period, or until the tenant passes away. The REIT is now looking to invest in Lisbon and Porto.
Almagro, as the buyer, applies a reduced discount on the building’s selling price and pays the seller most of it, leaving a part of it to cover the rents. If the tenant leaves the house before the agreed date, he will be reimbursed the remaining amount.
Enrique Isidro, administrator and shareholder at the REIT told idealista/news, that the idea was «to provide a solution to senior citizens», who need liquidity, but who want to keep their houses. He further remarked «our commitment is to improve peoples’ quality of living, through a project which offers a complete solution».
Almagro currently has around 100 houses in Madrid’ prime areas, estimated to be valued 54 million euro. The REIT is now finalising a 50 million euro capital increase to invest in the main Spanish cities and it will start analysing operations in prime areas in Portugal. Lisbon and Porto will be the main focus.
The company intends to invest around 250 million euro through other capital increases, remaining focused on housing districts which guarantee liquidity and low risk until 2023.