Invest in Madrid’s Golden Mile from 500 euros

We’re excited to announce a new rental project ready for investment. This time, we’re heading to one of Madrid’s most exclusive areas. The project will open for funding on Tuesday, February 6th, at 4 p.m. Would you like to invest in Madrid’s Golden Mile? We’ve got all the details for you below.

The Local Prime project involves the acquisition of a commercial space in Madrid, rented to a luxury brand. The location is at the corner of Lagasca and José Ortega y Gasset streets, right in the heart of the Salamanca neighborhood. This area is considered the most exclusive in all of Spain in terms of commerce. It’s one of the streets with the lowest yields in transactions, meaning it’s one of the least risky locations in Spain.

The project is led by Falcons Real Estate, a family-owned real estate investment company providing advisory solutions, investment structuring, and real estate asset management. With an experienced team in investment banking and strategic consulting, Falcons Real Estate has over 25 years of experience in the sector.

5% profitability over five years

The Local Prime project follows an income strategy. Urbanitae investors will partner with Falcons Real Estate to purchase the property leased to a luxury brand and cover the associated investment expenses. The purchase price of the property is 5.3 million euros.
Of the total purchase price, Urbanitae investors will contribute 2.373 million euros, which constitutes the Local Prime project ticket. The contribution will be, as always, through a capital increase to the operation’s SPV: there will be no need for bank financing.
The tenant of the property recently signed a 15-year lease contract, with a mandatory compliance period of 10 years. Additionally, the French company plans to renovate the premises with an investment of between 10 and 20 million euros.
According to the lease agreement, which is indexed to the CPI, the project is expected to generate an average annual dividend of 5%, which will be distributed quarterly among investors based on their participation. Once the project’s 5-year term has elapsed, the property will be sold, yielding additional profitability through capital gains.
In this video, Luis Butragueño, partner at Falcons Real Estate, and Diego Bestard, CEO of Urbanitae, explain the key aspects of the Local Prime project.