Dentons advises Arganda Residential Leasehold on €20.2m ICO financing for affordable housing in Madrid
Dentons‘ Real Estate and Finance teams have advised Arganda Residential Leasehold on securing up to €20.2 million in financing from the Instituto de Crédito Oficial (ICO) for the development of 210 affordable rental homes in Arganda del Rey, Madrid. The financing is part of the VIVE III Plan of the Community of Madrid and is managed by DeA Capital Real Estate.
The development, executed by Grupo Inmobiliario Ferrocarril, will provide much-needed affordable rental housing for individuals and families whose financial circumstances prevent them from accessing homes in the open market. The rental prices will be significantly below market rates for comparable properties in the area, ensuring greater housing accessibility.
In line with environmental sustainability and energy efficiency standards, the project will comprise 210 homes with two- and three-bedroom layouts, ranging from 58 to 72 square meters, as well as storage units and 290 parking spaces. The ICO loan will have a 30-year term, including up to three years of grace period.
The financing aligns with the ICO’s long-standing commitment to supporting affordable housing initiatives. This focus has been further strengthened through the management of the ICO Housing Line, backed by #NextGenerationEU funds under the Spanish Government’s Recovery, Transformation, and Resilience Plan, which allocates €4 billion to expanding and improving the stock of social and affordable rental housing in Spain.
Dentons’ legal advisory team was led by Real Estate partner Itxaso López, supported by senior associate Manuel de Cueto and associate Carlota García Ovies. The Finance team also played a key role, with partner Jabier Badiola and senior associate Ignacio Fernández advising on the financing aspects of the transaction.
