A&G Global Investors will develop 125 affordable rental homes in Estepona, in a project that will mobilise a total investment of €43 million and is due for completion in 2029.
The project will be financed through a combination of private capital, bank debt and European funding. Through A&G Real Estate Sustainable Developments SICC, the management company will contribute €9 million from the Regional Resilience Fund, allocated by the European Investment Bank under the Recovery and Resilience Facility.
Obra Nueva.com will act as the delegated developer for the scheme, which will include one-, two- and three-bedroom flats, as well as parking spaces, storage rooms, green spaces and communal areas.
The properties will be subject to a limited price protection scheme and will be let at regulated rents, adjusted in line with inflation and set below free-market rents in the area.
The development will be situated on land zoned for tertiary use under Decree-Law 1/2025 of the Regional Government of Andalusia, which permits this type of land to be used for social housing with the aim of accelerating the creation of residential supply.
According to estimates compiled by A&G using data from the Bank of Spain and the National Statistics Institute, the province of Málaga has accumulated a shortfall of 26,105 homes over the last five years, as a result of the imbalance between the formation of new households and the construction of new homes.
The development forms part of the strategy for affordable housing, urban regeneration and sustainable tourism that the management company is implementing through A&G Real Estate Sustainable Developments SICC. The vehicle, which has been managed since July 2025, was selected by the EIB to channel €130 million from the Recovery, Transformation and Resilience Plan into property projects in Spain.
Jaime Trigo, managing director of A&G Global Investors, noted that the transaction is in line with the objective of channelling institutional capital into markets with a structural housing shortage, while also broadening the geographical diversification of the portfolio linked to the EIB’s mandate.
