A&G Global Investors and Gestilar will jointly develop 288 affordable rental homes in Los Ahijones (Vicálvaro), one of the main urban development areas in the southeast of Madrid. This represents a top-tier partnership in which A&G will channel both public and private institutional capital, while the real estate company will lead the project’s promotion and development.
The transaction, with an investment of approximately €70 million, will be supported by the A&G Real Estate Sustainable Developments SICC S.A. vehicle, whose resources come from the Regional Resilience Fund (RRF), allocated by the European Investment Bank (EIB) in July 2025 under the Recovery and Resilience Facility (RRF Spain). Private capital will be channelled through different investment vehicles managed by A&G.
The combination of both vehicles enables A&G to simultaneously mobilize public and qualified private capital under a single investment thesis, maximizing risk-adjusted returns while meeting the proposed social impact objectives.
The project: 288 affordable rental homes in new Madrid
Gestilar, which has a long-standing track record working with institutional capital—including investors such as Morgan Stanley, DWS, and Aviva Investors—and is one of the most active players in Spain’s build-to-rent segment, will develop the scheme on a plot with 24,065 square meters of buildable area acquired from the Compensation Board of the sector.
The development will include 288 VPPL affordable rental homes with storage rooms and parking spaces, totalling approximately 35,000 square meters of constructed area. Delivery is expected in the first half of 2029.
The project will be located in phase 1 of Los Ahijones, an area planned for more than 18,000 new homes, over 50% of which will be publicly protected housing. Situated 10 kilometers from Madrid city centre, the development will have direct access to the M-45 and M-50 motorways and will be close to the future extension of Metro Line 9.
Partners and strategy: public capital, private capital, and a leading developer
According to Jaime Trigo, Managing Director of A&G Global Investors, “this project allows us to continue meeting our objectives related to the development of sustainable, affordable housing solutions in areas with significant structural imbalances, generating greater impact.” He adds that “it is highly relevant for us to be able to commit from a single platform both the management of public funding sources and the co-investment of necessary private capital, thanks to the different management mandates currently held by A&G.”
For his part, Javier García-Valcárcel, Chairman of Gestilar, states that “this transaction highlights the importance of collaboration between public administrations, developers, and institutional capital in effectively addressing the affordable housing shortage.” He also emphasizes Gestilar’s experience in such initiatives: “we have extensive experience in complex residential developments and in the comprehensive management of the entire value chain, which allows us to successfully undertake projects of this scale.” He further notes that “our execution capability, together with strong financial and operational solvency, is key to meeting deadlines and quality standards required in these types of developments.”
From structural imbalance to opportunity: affordable housing as an institutional asset
This initiative takes place in a context of significant pressure in the residential market. Spain faces a structural shortage of affordable housing, estimated by the Bank of Spain at around 220,000 homes, compared with new housing production that does not reach half of that figure. According to the same source, over the past four years this imbalance has created a cumulative deficit of more than 600,000 homes, particularly affecting major urban areas such as Madrid.
Against this backdrop, the Los Ahijones project represents an example of public-private collaboration aimed at increasing affordable housing supply in high-demand areas.
The transaction fully meets the criteria set by the European Investment Bank, standing out for its strong multiplier effect: thanks to the public-private co-investment structure and diversified financing sources, every euro of public resources mobilized generates more than €4.5 of additional investment. This demonstrates the ability of this model to maximize resources and enhance the real impact of European funds in the residential market.
cloud technology axon
With a target size of €250 million, the fund aims to complete betwee...
