COFIDES, through its Social Impact Fund (SIF), is supporting tuTECHÔ’s upcoming capital increase as an anchor investor with an investment of up to €5 million. The transaction is expected to attract additional investors contributing a further €5 million, strengthening the growth of Spain’s first listed social REIT (SOCIMI) on BME Growth dedicated to social housing.
This capital increase is part of the SIF Social Impact Housing Line and will help consolidate tuTECHÔ’s business model, expanding its social rental housing portfolio for NGOs that support people in extremely vulnerable situations, with the aim of addressing the challenge of ending homelessness.
The capital raise will enable tuTECHÔ to continue expanding its activity in urban areas and, in particular, outside major cities, in rural regions affected by depopulation, where the lack of available housing poses a challenge to attracting and retaining population. Specifically, the €10 million capital increase in which COFIDES participates alongside other investors will allow for the addition of nearly 100 housing units to the model, generating a direct impact on around 400 people. It will also enable new NGOs to join the more than 85 social organisations already part of tuTECHÔ’s ecosystem, further scaling a model that currently supports the pathway to autonomy for more than 3,000 people.
ACCESS TO DECENT AND AFFORDABLE HOUSING FOR VULNERABLE GROUPS
Through this transaction, COFIDES, via the Social Impact Fund, reinforces its support for a leading initiative within Spain’s impact investment ecosystem and contributes to providing innovative solutions to one of the country’s main social challenges: access to decent housing for the most disadvantaged groups.
Since its creation, tuTECHÔ has developed an innovative housing-with-support model, providing Third Sector organisations with dignified housing so they can deliver more comprehensive intervention processes built on stability, autonomy and dignity. This integrated approach not only provides stable housing solutions but also promotes social inclusion processes and territorial cohesion.
This is the second transaction in which COFIDES and tuTECHÔ collaborate, following a previous €3.5 million loan provided to the SOCIMI—together with Impact Bridge—to finance the acquisition of housing aimed at eradicating homelessness in Spain.
Elena Rodríguez, Secretary-General of the Ministry of Inclusion, has highlighted the importance of public-private collaboration in expanding the stock of social and affordable housing. “It is one of the priorities of the Government of Spain, and the SIF reinforces the state plan, focusing on groups in extreme need and promoting the mobilisation of vacant housing in rural areas.”
Ángela Pérez, Chair and CEO of COFIDES, stated: “Combating homelessness requires commitment to models that provide stable housing and social support. The Social Impact Fund enables COFIDES to channel capital towards initiatives such as tuTECHÔ, which directly contribute to reducing social exclusion and generating lasting social impact.”
Blanca Hernández, Chair and Founder of tuTECHÔ, stated: “At tuTECHÔ we believe that major social challenges can only be addressed through collaboration. This transaction is a tangible example of the strength of public-private partnerships and of how public administrations, companies, investors and social organisations can work together to respond to one of the major issues in our country, generating real, measurable and sustainable impact.”
SOCIAL IMPACT HOUSING LINE OF THE SIF
The SIF Social Impact Housing Line continues to strengthen a nationwide network of social, dignified and affordable rental housing. With this new transaction in tuTECHÔ, the Fund has allocated nearly €16 million across four transactions aimed at tackling homelessness and expanding access to decent housing in Spain.
The Social Impact Housing Line has an initial allocation of €40 million. Through it, the SIF aims to channel investment into innovative affordable and social housing projects and facilitate access to housing for vulnerable groups such as young people in precarious employment, single-parent households with low incomes, migrants, and elderly people with low pensions. It includes various access modalities—rental, assignment, and other innovative schemes—in safe, accessible environments with basic services.
ABOUT THE SOCIAL IMPACT FUND
The SIF is a fund created by the Spanish Government through the addendum to the Recovery, Transformation and Resilience Plan (RTRP) and is financed by NextGenerationEU resources. Managed by the Ministry of Inclusion, Social Security and Migration, it is a public financial instrument designed to strengthen Spain’s impact ecosystem by supporting investment projects carried out by companies and other entities that generate measurable positive social and/or environmental impact.
The fund is endowed with €400 million and provides financial support to financially sustainable projects that address insufficiently covered social and environmental challenges, while also promoting the mobilisation of additional private capital.
ABOUT COFIDES
COFIDES is a state-owned commercial company that manages public financial funds as well as its own resources and those of third-party institutions, with various objectives: the internationalisation of the Spanish economy, the attraction of foreign investment into strategic sectors in Spain, the promotion of the impact economy in Spain, and contribution to the development of the countries in which it invests. Its shareholders include, in addition to the State (majority shareholder), Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell, and CAF–Development Bank of Latin America.
ABOUT tuTECHÔ
tuTECHÔ is a solution designed to help address the most persistent social problem in Spain: homelessness. It is an innovative approach enabling social organisations to support the integration of people in extremely vulnerable situations through two complementary initiatives: tuTECHÔ Hogar, a social and sustainable high-impact real estate company, and the tuTECHÔ Foundation, philanthropy in service of impact investing, which amplifies the impact of this solution beyond housing.
tuTECHÔ is an ecosystem of committed partners working towards a shared goal: addressing major social challenges through alliances—purpose-driven companies, social organisations, impact investors, philanthropists, public administrations, and individuals.
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