Guerra details that once the acquisition of these properties has been signedwhose works were left unfinished when they were affected by the previous real estate crisis from 2008 to 2014, The Orion Rental investment company will invest another 18 million in the coming months to finish the work, obtain permits and have those 294 apartments put on the rental market under official protection, that is, with “affordable prices.”
The average surface area of these houseslocated in the heart of Granadilla de Abona, very close to the Town Hall headquarters, It is between 60 and 70 square meters. Rental prices will be stipulated based on what is included in Spanish regulations for homes with these characteristics: 5.5 euros per square meter for the basic type and 6.5 euros per square meter for those that include a storage room and garage.
The average surface area of these houses, located in the heart of Granadilla, very close to the Town Hall headquarters, is between 60 and 70 square meters.
In such a way that a basic apartment of 60 square meters would be rented for 330 euros per monththe garage and storage room 390 eurosand one of 70 basic square meters per 385 euros and with garage and storage room 455 euros.
The forecast of the Canarian company Orion Rental is that The work to complete these apartments will be carried out this year so that in 2025 they can be offered for rent.. The prices being handled are well below those of the current market and will allow the recovery of a supply that has fallen drastically in Granadilla, in the same way as in the rest of the municipalities of Tenerife.
The Current long-term rental offer in Granadilla is laughable if we take into account that it is one of the dormitory cities for thousands of workers in the Tenerife tourism sector and that it has experienced a large increase in population in this century – from 20,323 inhabitants in 2000 it has risen to 54,942 today.
Real estate portals only offer around thirty rentals for long periods in Granadilla: none are less than 750 euros
At the moment, the main real estate portals barely offer thirty optionsof which only one is less than 800 euros per month: a 63 square meter apartment in the center of Granada, located very close to the eight buildings acquired by the Canarian real estate company, which is offered at 750 euros per month. For the rest, all exceed 850 euros.
Meanwhile, the market vacation homerentals for short periods, is immensely superior. Granadilla has 1,112 tourist housesaccording to him National Institute of Statistics (INE).
The general director of Private Equity specifies about the eight buildings purchased from bad bank –as Sareb is known, the Company for the Management of Assets from Bank Restructuring– which in two there are people living. And this despite the fact that they lack the permit for habitability. In most cases, these are families that had started the process to acquire one of these houses.when they began to be built, and that they lost that option when the works were stopped abruptly due to the brick crisis in the final stretch.
Two of the eight buildings have occupied floors even though they lack permission to live in them.
«We will guaranteealways within the legal framework, that none of these people are left homeless. The formulas for this will already be established, such as through their relocation to other houses in these same developments as they are completed and the required permits for their occupation are obtained,” explained Enrique Guerra.
The Orion Rental operation confirmed this Tuesday with the purchase of the eight buildings in Granadilla, which the company intends to expand with the acquisition of another unfinished development of 92 homes in Los Realejos and another 254 unfinished homes in Fuerteventura, opens a “very important” way of participation of private capital to solve one of the main problems suffered by Canarian society: the new real estate crisis, with an unprecedented shortage of rental housing supply and increasingly inaccessible prices for the average islander.
The Granadilla operation is unique in the Canary Islands and opens the way for the private sector to get involved in the housing problem in the Canary Islands.
«I don’t remember such an important participation of private capital from the Canary Islands in the recovery of unfinished housing to put it on the market and help fight against a situation as pressing as the one the Islands are going through, especially the southern part,” emphasizes Enrique Guerra, who defends that with the support of the administrations, island investors have a lot of room to provide solutions to a situation that It leaves thousands of Canaries without options to access a decent home.
The operation of the Orion Rental company has been possible thanks to the support of 38 investors from the Islands, explains Enrique Guerra. The Spar Group of supermarkets forms part of 80% of its share capital, on this occasion led by Ángel Medina (Cencosu) and Jesús Díaz (Spar Mogán). Also among the investors are Óscar Díaz, president of the 1844 Group dedicated to transportation, Francisco López (Erga Inversiones y Proyectos), Manuel Padrón (Juan Padrón Group), Manuel Medina (Grupo Lavandería El Cardón) and Anil Partap (Valsons).
Other project partners They are Acosta Matos, from a company with more than 40 years of experience that has positioned itself as a benchmark in the Canary Islands for development and construction projects; and GMA, one of the main independent investors and manager of real estate investment vehicles with hotel branches (Atom Hotels and Victoria Hotels & Resorts). Led by its presidents and its CEO, José Acosta and Víctor Martí, in addition to their participation, they will assume the management of Orion Rental through AGM Canary Asset Management, in which both of them participate, adopting the role of investor-manager. Likewise, the social aspect and the importance for the Canary Islands of building homes for affordable rental have prompted Cajasiete to lead this project and invest in its social capital.
The Orion Rental’s future plansalready with more than 600 homes in the development phase –including those in Los Realejos and Fuerteventura–, are about to start the construction of new homes on the Islands using the public-private collaboration model supported by the Government of the Canary Islands, through its Department of Housing and its head Pablo Rodríguez, based on the transfer of public land through a surface right for more than 70 years.
