Invest in Madrid with a 13% return

This week, we are launching a new debt project in Madrid, which we will open for financing on Friday, October 27th at 12:00 PM.

The Islas Medas project is a residential project consisting of 46 multifamily homes located in Ensanche de Vallecas, a new neighborhood in Madrid with a current population of 54,000 residents. It is well-connected to other districts in Madrid and offers a wide range of social, medical, and commercial amenities.

For this project, we are partnering with Gestilar, a company with extensive experience, with whom we have previously financed two other projects in Madrid and Cordoba.

57% of the construction completed and nearly 20% of the homes reserved

This transaction will be structured as a debt investment, where Urbanitae investors will provide a fixed-rate loan at 13% to the owning entity of the asset. This loan will be used to finance the remaining work on the project, which is currently at 57% completion, and cover the remaining expenses associated with the project’s development and the subsequent delivery of the homes.

Gestilar retains the option to extend the loan after 6 months from month 12, contingent on demonstrating a 95% completion rate and 60% of the homes being sold. An additional 6-month extension can be considered starting from month 18, provided that the manager can show they have obtained the Building License (LPO) and the project is sold to 85%.

Urbanitae investors will exit their investment through the sale of the homes, of which nearly 20% are already reserved.

In this video, Raúl Guerrero, CEO of the Gestilar Group, and Diego Bestard, CEO of Urbanitae, explain the key aspects of the project.