Arganda Residential Leasehold Secures €20.2m ICO Financing
Deal News | Feb 25, 2025 | Iberian Lawyer
Dentons has successfully advised Arganda Residential Leasehold in securing up to €20.2 million in financing from the Instituto de Crédito Oficial (ICO) for developing 210 affordable rental homes in Arganda del Rey, Madrid. This funding is part of the Community of Madrid's VIVE III Plan and managed by DeA Capital Real Estate, with execution by Grupo Inmobiliario Ferrocarril. The development aims to offer affordable rental options well below market rates, addressing the housing shortage for financially constrained individuals and families. It also seeks to align with modern environmental and energy-efficient standards. The loan has a 30-year term with a grace period of up to three years and fits into ICO's broader strategy of expanding social and affordable housing through support from the Spanish Government's Recovery Plan and NextGenerationEU funds. The legal advice was chiefly provided by Dentons' Real Estate and Finance teams, focusing on both real estate and financing aspects of the deal.
Sectors
- Real Estate
- Finance
Geography
- Spain – The development of affordable housing is taking place in Arganda del Rey, Madrid, Spain, and the financing is managed within the context of Spanish government initiatives.
Industry
- Real Estate – The article focuses on the development of affordable housing, which falls under the Real Estate industry classification.
- Finance – The involvement of financing and a transaction structured by Dentons points to relevance in the Finance sector.
Financials
- €20.2 million – The amount of financing provided by ICO for the development project.
- 30-year term, 3-year grace period – Terms of the ICO loan for the affordable housing project.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Arganda Residential Leasehold | Target | Company | Recipient of the ICO financing to develop affordable rental homes in Madrid. |
| Dentons | Legal Advisor | Company | Provided legal advice on the transaction for Arganda Residential Leasehold. |
| Instituto de Crédito Oficial (ICO) | Financing Institution | Government | Government credit institution providing €20.2 million in financing. |
| DeA Capital Real Estate | Manager | Company | Manages the VIVE III Plan through which the financing is structured. |
| Grupo Inmobiliario Ferrocarril | Developer | Company | Responsible for executing the development of the residential project. |