Urbanitae’s success in Tarragona with Construverty
We continue adding new projects to our list of success stories. This time it’s about Cunit, a residential asset that has been a success and is located in Tarragona, close to the beach (Cunit and Les Gavines) and the sports center Club Sports Tennis & Padel Cunit and the Les Salines industrial estate.
The operation was launched in December 2021 and involved the development of a promotion of five attached single-family homes with 2 and 3 bedrooms, with average areas of 123 m2 and an average price of 246,000 euros.
Leading the project is Construverty, a company founded in 2012 with extensive experience in Tarragona and Barcelona, making its debut as a promoter for Urbanitae.
The collaboration between the promoter and Urbanitae investors took the form of a fixed-rate loan to finance the construction of the five homes. Our investors contributed 600,000 euros. The remaining capital needed came from equity and amounts paid by homebuyers. At that time, four out of the five available units were reserved, providing sufficient repayment capacity to meet the amount owed.
The funding brought together 514 investors who participated through our prefunding system, with a maximum ticket of 6,000 euros per investor. This allowed us to expand the possibilities of joining this project, which was expected to have high demand.
Improved IRR and 15.1% final return
Once the project was closed, and capital and interest were returned to our investors, we can confirm that the operation’s results exceeded the initial expectations.
On one hand, the estimated execution period was 15 months, but the work was ultimately completed in 13 months. Also, the return for Urbanitae investors increased from the estimated 15% to 15.1%. This success translated into a two-point improvement in the expected IRR, starting from 12% and reaching 14%.
Keys to success
In addition to the initial level of presales, the project had other factors that made it attractive for investment.
- From 2013 until the operation, Construverty had promoted 31 single-family homes in the same municipality.
- The promoter owned the five plots on which the promotion was developed, which were free of charges.
- The project offered a very attractive initial annual return of 12%, representing a 15% return on invested capital.
- The operation had a mortgage guarantee on the plots that make up the promotion.
- The financing was structured via a loan, and it was not necessary to wait for the sale of all homes to receive returns.
- The promoter had funds as the work was certified, but committed to accruing 100% of the agreed interest from the moment of granting.
Construverty’s confidence in crowdfunding
Construverty is a promoter with a decade of experience and more than 220 delivered homes. 40% belong to their own promotions, and 60% are homes requested by self-promoting clients.
Cunit is the first project financed by this promoter through our platform. After the positive reception of this promotion, Construverty once again trusted in Urbanitae and collaborative investment with two more operations: Cunit II and Cunit III.
Once again, the potential of crowdfunding and the significant role that small investors can play in the real estate market is demonstrated. If you also want to be part of this market and benefit from the profitability that projects like this offer, don’t wait any longer to join our community of investors. Register for free on our platform and stay tuned for our upcoming investment opportunities.