Cuatrecasas Advises Tectum Investment Managers

Cuatrecasas has advised Tectum Investment Managers ("Tectum”) on creating a collective investment vehicle, Tectum BTR SICC, to promote affordable rental housing. The real estate company plans to build up to 2,500 protected housing units in the region of Madrid and other regions, with the support of European funds and private capital.

Tectum—a groundbreaker in Spain in build-to-rent models for the affordable housing segment—seeks to gain between €120 million and €150 million of initial capital, with a leverage of 50% to 75%, reaching a total investment capacity of €450 million. The aim is to develop between 2,000 and 2,500 protected housing units for affordable renting in the next three years, supporting public-private partnership models.

The project meets the Spanish Official Credit Institute’s (ICO) requirements, which will allocate €268 million to affordable rental initiatives financed in part with European funds. Tectum’s plan includes developing 75 to 500 homes per project, with concession, surface rights, and co-investment models, and an operating period of up to 75 years.