tuTECHÔ Secures €10M for Social Housing Expansion

tuTECHÔ, Spain's pioneering social real estate investment trust (SOCIMI) focused on affordable housing, has successfully closed a significant capital raise totaling €10 million. The funding round was anchored by COFIDES, acting through its Social Impact Fund (FIS), which committed up to €5 million. This infusion of capital is earmarked to accelerate tuTECHÔ's mission of expanding its portfolio of social housing units, particularly in underserved rural areas facing depopulation challenges.

The investment is strategically aligned with the FIS's Social Impact Housing Line, aiming to bolster tuTECHÔ's business model and its capacity to provide stable housing solutions for non-governmental organizations (NGOs) supporting individuals and families experiencing extreme vulnerability. This initiative directly addresses the critical issue of homelessness, with the goal of fostering pathways to autonomy for those affected.

With this new capital, tuTECHÔ anticipates integrating approximately 100 additional homes into its managed stock. This expansion is projected to directly benefit around 400 individuals. The company currently collaborates with over 85 social entities, and this funding will enable the onboarding of new NGOs, further scaling a model that currently supports the journey to independence for more than 3,000 people.

This marks the second collaboration between COFIDES and tuTECHÔ. Previously, COFIDES, in conjunction with Impact Bridge, provided a €3.5 million loan to facilitate tuTECHÔ's acquisition of properties aimed at combating homelessness. The current capital increase underscores a deepening partnership and a shared commitment to addressing Spain's housing affordability crisis.

The Spanish government, represented by Elena Rodríguez, Secretary General of the Ministry of Inclusion, Social Security and Migrations, has emphasized the vital role of public-private partnerships in scaling social and affordable housing. She highlighted the FIS's focus on vulnerable populations and its strategy to mobilize vacant properties in rural settings.

Ángela Pérez, President and CEO of COFIDES, stated, “Combating homelessness requires a commitment to models that offer stable housing and social support. The Social Impact Fund empowers COFIDES to channel capital into initiatives like tuTECHÔ, which directly contribute to reducing social exclusion and generating lasting social impact.” Blanca Hernández, President and Founder of tuTECHÔ, added, “At tuTECHÔ, we believe that major social challenges are best tackled through collaboration. This operation exemplifies the power of public-private alliances, demonstrating how public administrations, companies, investors, and social entities can unite to confront significant national issues with tangible, measurable, and sustainable impact.”

The FIS's Social Impact Housing Line has now allocated nearly €16 million across four operations dedicated to fighting homelessness and improving access to dignified housing in Spain. The line, with an initial endowment of €40 million, aims to channel investment into innovative affordable and social housing projects, assisting vulnerable groups such as young people in precarious employment, low-income single-parent families, migrants, and low-pension seniors.