CaixaBank will lend Avalon Properties, a company owned by the US fund Ares Management, and Culmia, owned by the Oaktree fund, between 60% and 70% of the funds required to build the homes in the first three lots of the Vive Madrid Plan, as Brainsre.news has learned exclusively.
Both investors have finalised one of the project’s most important hurdles: financing. Avalon and Culmia will receive loans worth more than €400 million from the financial institution.
This agreement represents a major agreement between the real estate and the financial sectors. It consists of long-term financing (more than eight years), with small returns per operation, of only one digit, added to any development risk.
The financing offered by CaixaBank would be for terms of up to 30 years, but the intention of at least one of the investors is to fix interest rates for fewer years. The initial agreement is tacit, but the deal is expected to close by February. The bank has not commented on the matter.
