New project! Invest in Mallorca with an annual dividend of 5.3%
We present a new rental project, the tenth one we’ve launched on the platform. You will be able to invest in it next Tuesday, October 1st, at 4:00 PM (UTC+2). Invest in Mallorca starting from just 500 euros: here’s how.
With the Local Comercial Palma project, we return to the Balearic Islands, once again in partnership with Rubica Real Estate, with whom we have already financed four similar projects. This time, the objective is to acquire a 560-square-meter commercial space in Palma, the capital, leased to Rossmann, one of the largest drugstore chains in Europe. As with other rental projects, the idea is to obtain regular rental income and capital gains from its sale within 60 months.
The project is located at number 5 Avenida de México. The property is situated in the Nou Llevant neighborhood, the city’s main expansion area, where more than 750 homes have been built in the last two years. The property is near the popular Portixol neighborhood, just minutes from the beach, 10 minutes from the airport, and only 2 km from Palma’s city center.
5.30% annual return over 5 years
The manager of this opportunity is Rubica Real Estate, with whom we have already collaborated on four occasions. The management team at Rubica has more than 50 years of experience; since its founding, the manager has participated in over 200 real estate operations, primarily involving commercial spaces.
The tenant, Rossmann, has been renting the property since September 2023 and has a 20-year lease (until 2043), with the first three years being mandatory (until September 2026). Rossmann has been in business for over half a century. Last year, the company had revenues of more than 13.9 billion euros (14.4% more than in 2022) and is expanding in Spain, where it entered the market in 2020.
The operation will be structured via equity. Urbanitae investors will contribute a total of 1,090,000 euros for the purchase of the property through a capital increase to the operation’s SPV.
In this video, the developer and our Real Estate director, Sergio Arana, explain the project details.
First dividend in the first quarter of 2025
According to the lease agreement signed by the tenant, the project is expected to generate an average annual net dividend of 5.30%. It is important to note that the rent is indexed to the CPI, which provides protection against inflation. Starting in September 2025, there will be an annual upward rent adjustment based on CPI variation, capped at 4%.
In addition, capital gains are also expected with the sale of the property within a maximum of five years. We are unable to provide an estimate of the expected return in this case due to regulatory restrictions, but it can be calculated from the data included in the Local Comercial Palma project sheet using the formula: (Estimated income – Estimated costs) / Total equity.
The estimated duration of the project is five years, but starting in year 3, an exit window will open if market conditions are optimal. The first dividend is expected to arrive between January and March 2025. The exit window would open in the fourth quarter of 2027, and if not exercised, the liquidation of the company and distribution of remaining profits to investors would occur in the fourth quarter of 2029.
Do you have any questions? You can contact us at (+34) 911 23 25 22 or via email at contacto@urbanitae.com. You can also ask any questions about the project in the webinar we will hold with the developer on Thursday, September 26th, at 4:00 PM (UTC+2).
Don’t miss out on this opportunity. Invest in Mallorca and achieve quarterly returns of 5.3% annually.