The financial group Solventis, through its fund specialising in affordable rentals, has launched the socially responsible investment fund Fondviso, with which it expects to raise up to 650 million euros to build 12,000 affordable rental homes in Spain over the next ten years.
The fund's objective is to reach parks with a lack of affordable rental housing, especially in the Canary Islands, which will receive 5% of the assets raised by the company with the fund.
To this end, it plans to build 615 homes in these islands through a public-private partnership, with a direct investment of 100 million euros in the territory, allocating a minimum of 5% of the fund's portfolio to this autonomous community, which has one of the greatest deficits in affordable rental housing.
The director of alternative real estate investments at Solventis, Toni Bosch, points out that "access to rental housing in the Canary Islands requires a financial effort 36% higher than the Spanish average, considering that the average income per household is 14.43% lower", according to Bosch.
This fund, which aims to reach 30% of the population with average incomes between 28,000 and 45,000 euros, seeks to address the lack of affordable public rental supply in Spain, currently at 1.6% of the total, a figure that drops to 1% in the Canary Islands, compared to 15% on average in Europe.
Therefore, the model will allow public administrations to obtain five times more housing for public rental supply than the current model. Moreover, it is a profitable project for investors, with an estimated net annual return of over 7%.