PATRIZIA, a global investment manager in real assets, and Urbania, a leading Spanish real estate development firm, have unveiled their new joint venture "Sustainable Communities Spain" (SC Spain) to deliver more than €130m of sustainable and affordable housing across Spain's major metropolitan areas.
The joint venture will initially develop approximately 320 social housing units across five sites around Alicante in the Valencia region, with construction starting imminently and first occupancy targeted for summer 2026. The programme leverages innovative public-private partnerships under the EU's "Next Generation" recovery framework, securing 75-year leasehold access to public land and government-backed financing that creates an attractive risk-adjusted return profile even in today's higher interest rate environment.
Marleen Bekkers, Fund Manager of PATRIZIA Sustainable Communities, commented: "This joint venture with Urbania marks a strategic expansion of our impact investment strategy into Spain, which has a shortage of 500,000 homes, concentrated in metropolitan areas, according to the Bank of Spain. The partnership will leverage Urbania's expertise in sustainable development to deliver energy-efficient, well-located homes while adhering to our rigorous social and environmental impact standards. By capitalising on favourable public sector collaboration and EU funding, this initiative demonstrates our commitment to creating long-term value for both investors and underserved communities."
With public housing comprising just 2.5% of Spain's total housing stock (compared to the EU average of 9%), SC Spain addresses a significant market gap while offering institutional investors exposure to a resilient, counter-cyclical asset class. The venture stands to benefit from Spain's new Housing Law, which includes substantial incentives for affordable housing developers, including fast-tracked approvals and potential tax advantages that could boost returns by an estimated 15-20% compared to standard residential developments.
Jeffrey Sújar, Managing Partner of Urbania Living, added: "Our partnership with PATRIZIA Sustainable Communities represents a critical step toward addressing Spain's growing need for affordable and sustainable housing. By creating well-connected, energy-efficient homes for low- and middle-income households, we are directly contributing to the transformation of the housing sector, aligning with national and European initiatives to improve access and affordability. SC Spain's approach integrates innovative solutions and public-private collaboration, establishing a new model for the delivery of social housing across key metropolitan areas."
People mentioned:
- Marleen Bekkers - Fund Manager of PATRIZIA Sustainable Communities
- Jeffrey Sújar - Managing Partner of Urbania Living
Companies mentioned:
- PATRIZIA - Global investment manager in real assets
- Urbania - Spanish real estate development, investment and management company
- Sustainable Communities Spain (SC Spain) - Joint venture between PATRIZIA and Urbania
IMAGE RENDER: Credit - Patrizia
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