Basque government agrees to buy 510 protected homes from Blackstone unit for 100 million euros

The agreement

The Basque government has reached an agreement in principle with Testa Residencial Socimi, a company linked to the US investment fund Blackstone, to acquire the surface right over 510 protected homes in the Benta Berri district of San Sebastián (Donostia). The housing department announced the deal on Wednesday, 21 October 2026, and housing councillor Denis Itxaso presented the details at a press conference. The price is 100 million euros, which works out to about 196,000 euros per home, according to LaSexta and La Vanguardia. The regional government already owns the land beneath the buildings, while Testa holds the surface right, which is valid until 2069. Once the purchase closes, land and homes will sit under a single public title. The sale contract is expected to be signed before the end of 2026.

Why the homes were at risk

The homes trace back to a public housing project that the Basque government awarded in 1994 to a joint venture of Metrovacesa and Vallehermoso, which received a 75-year surface right on the land. The first tenants moved in during 1998 under a protected rental regime. The protected status was formally registered in November 1998 for 30 years, expiring in November 2028. Testa Homes, controlled by Blackstone, acquired the blocks in 2016. In early 2026 about 40 tenants received notices that their leases would not be renewed, and residents organised through the Alokairu association, supported by Stop Desahucios. El Mundo reported that tenants warned Testa intended to use the end of protection to raise rents or terminate current contracts in order to charge new tenants more. Testa manages around 14,000 homes across Spain, El Mundo said.

Political reaction

San Sebastián mayor Jon Insausti welcomed the agreement and credited the city's united stance, including a council motion approved on 26 March urging the regional government to find a solution. He praised the Basque government led by lehendakari Imanol Pradales and said he was not in favour of working with "vulture funds".

The unity and strength of the people of San Sebastián has brought a solution.

Nerea Kortajarena, the EH Bildu candidate for mayor of San Sebastián, also called the deal good news for the 510 families, but argued that it should never have been necessary. She said her coalition first proposed preferential purchase of these homes in the Basque Parliament in 2014.

Another kind of housing policy is possible, putting the interests of citizens at the centre.

Kortajarena also accused Insausti of using his casting vote in the Etxegintza council to back a developer's interests in the allocation of El Infierno, which she said ignored the wishes of a majority of the council plenary. El Mundo framed the announcement as an electoral "match ball" for Itxaso, who it says is tipped as the Socialist candidate for mayor in May 2027, with the 29N elections less than 40 days away. El Confidencial described the move as a PNV coup during the campaign.

Funding and next steps

Itxaso said the central government will contribute 31 million euros to the purchase, while El Mundo reported that the Basque government will put in 69 million euros.

El Mundo said the purchase will not be formalised until late 2026, and December 2026 at the earliest. Itxaso thanked residents for their patience and trust, and told Cadena SER that the process had been a long road that began several months earlier. Once the purchase is complete, the homes will remain protected without the November 2028 expiry date that had worried tenants.