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.
13% return in 12 months
The project offers a 13% return in 12 months. In the fourth quarter of 2023, we anticipate the loan approval from Urbanitae investors to the manager.
Between the first and third quarters of 2024, the completion of construction and the marketing of the homes is estimated.
Finally, in the fourth quarter of 2024, we expect the repayment of the loan provided by Urbanitae investors.
As always, you can reach out to us with any questions about the project at contacto@urbanitae.com or by calling 911 23 25 22.
