Primero H SOCIMI, a Social SOCIMI in Spain, has acquired the first five apartments in the municipality of Madrid, coinciding with its first anniversary. The vehicle, launched in March 2021 by ASOCIMI, -Spanish Association of Listed Real Estate Investment Companies (SOCIMI)-, and HOGAR SÍ -a social initiative entity that works to combat homelessness in Spain-, aims to attract funds to make investments with social impact.
Primero H SOCIMI has formalized the sale of 5 flats and the lease contract with HOGAR SÍ at an average rent of €490/month, thus contributing to the generation of affordable rental housing in Spain. The recipients of these homes will be entities from the third sector, such as HOGAR SÍ, which in turn will allocate them to people in a situation of residential vulnerability.
In addition to these first acquisitions, Primero H is analyzing c.100 additional properties to meet its objective of reaching a portfolio of 170 homes in the first three years of activity. Among the essential characteristics of the flats to be acquired are their dispersed location in community settings to facilitate the processes of inclusion of the people served by the programs that will make use of these homes, having between 1 and 3 bedrooms, and also being located throughout the Spanish territory. It is, thus, to form a suitable housing stock that allows the social and labor inclusion of people in a situation of residential vulnerability in a large part of the Spanish geography.
For the purchase of these homes, Primero H SOCIMI has managed to raise funds from the first investors amounting to 2.2 million euros, earmarked for the purchase of new homes. The inclusive nature of Primero H SOCIMI allows for institutional or private investors to make monetary or non-monetary contributions, through the contribution of flats that meet the characteristics demanded by third-sector entities in exchange for shares of Primero H SOCIMI. Primero H SOCIMI is characterized by being a social impact investment that offers a double return to its investor; on the one hand, of a social nature, helping to eradicate the situation of residential vulnerability in Spain; and on the other hand the economic one, with the aim of offering its investors a return at least equal to the capital contributed.
According to Javier Basagoiti, president of ASOCIMI, “a year ago we undertook this exciting project and we are excited to see its first fruits. Innovative and committed initiatives like this one are needed. For this reason, we are working to increase the number of investors who join Primero H Socimi and allow us to continue buying homes with which to contribute to the creation of affordable rentals in Spain”. For her part, in the words of the president of HOGAR SÍ, Marian Juste, “we are very happy with the progress of Primero H SOCIMI because we firmly believe that eradicating homelessness is possible and we are committed to partnerships and social innovation as a lever to develop solutions based on housing so that no person lives on the street”.