Invest in Zaragoza with a 5.4% annual dividend

We have a new project on Urbanitae! We are returning to the rental strategy, and this time, we invite you to invest in Zaragoza with an average annual dividend of 5.4%. It will be on Monday, January 22nd at 4 p.m. Do you want to know more details?

The Pepco Delicias project involves the acquisition of a commercial space leased to Pepco, the low-cost fashion, home, and leisure store chain. The mentioned space is located in Zaragoza, in the central Delicias neighborhood. The asset consists of three land registries on the ground floor of a residential building. The gross leasable area (GLA) exceeds 1,200 square meters, and it is all at street level.

GPA (Grupo Patrimonial Actur) is the promoter of this project. It is new to the platform, but the company has more than 30 years of experience in managing and investing in rental real estate assets. Currently, it manages the assets of several family offices and focuses on finding top-level tenants with long-term contracts in established locations, just like the Pepco Delicias project.

As for Pepco, it is a chain of Polish origin that sells low-cost clothing and home products and already has more than 3,000 stores in 17 European countries. In Spain, Pepco already has 160 establishments, which will be 200 by the end of the year if the company’s forecasts are met.

Annual return of 5.40% for 5 years

The tenant of the space is Pepco Group since June 2023, with a 15-year lease contract, six of which are mandatory. Pepco took possession of the space in November 2023; it is currently undergoing a comprehensive renovation that will be completed in May 2024, the scheduled opening date to the public.

Like any rental project, Pepco Delicias is structured as equity. Urbanitae investors, along with additional private investors, will make a capital increase in the operation’s vehicle company. This company does not plan to seek bank financing to purchase the space. For Urbanitae investors, the ticket amounts to 1,450,000 euros.

The project has a duration of 5 years. According to the lease contract signed by Pepco, we estimate that the project will generate an average annual dividend of 5.40% for Urbanitae investors, distributed quarterly. In addition, a sales option contract has been signed with GPA, which will come into effect from the 2nd year after the asset’s purchase. Naturally, the sale of the asset will generate additional profitability from capital gains, which you can calculate for each of the scenarios detailed in the project sheet.

In this video, Javier Palacio, founding partner of GPA, and Diego Bestard, CEO of Urbanitae, explain the details of the Pepco Delicias project.