After financing the Balcón del Sur project in just six minutes, we are announcing a very similar project from the same developer and in the same location. If you missed out last time, you will have the opportunity to invest in subsidized housing in Madrid on Tuesday, October 22 at 4:00 p.m. (UTC+2).
Like Balcón del Sur, the Ribera del Pinar project involves granting a loan to partially finance the purchase of land in Navalcarnero, Madrid, where a 248-unit residential development under cooperative housing scheme with limited price public protection (VPPL) will be built.
The 248 VPPL units will have three bedrooms, two bathrooms, large terraces, and extensive common areas with a swimming pool, patio, and private garden. In terms of location, the project is situated less than 30 km from the center of Madrid; it’s a 25-minute drive to Madrid via the A-5 or R-5 highways, and it’s also well connected by bus. Additionally, Navalcarnero is a city experiencing real estate growth, as it’s considered a more affordable and peaceful alternative close to Madrid. In fact, its population has grown by 13% since 2018.
This is the second project we are financing with Urbanismo y Gestión, following Balcón del Sur, which was fully funded in just a few minutes with the participation of over 1,800 investors. This developer has nearly 40 years of experience in the sector and has delivered more than 9,000 homes. In Madrid alone, the developer has completed over 50 cooperative housing projects, amounting to around 1,800 homes.
11.5% return in 12 months
The Ribera del Pinar project follows a debt strategy. Urbanitae investors will participate by granting a loan in a single tranche with a fixed annual interest rate of 11.50% for 12 months to partially finance the purchase of the asset. Urbanitae investors will exit the project via bank refinancing after achieving two milestones: (i) approval of the construction permit and (ii) reaching 70% in pre-sales.
Urbanismo y Gestión is contributing approximately 4.6 million euros, which accounts for 37% of the purchase price.
The construction permit will be applied for before the end of the year, and the developer expects approval within five to six months based on their recent experience with the Navalcarnero town council.
Mortgage guarantee and minimum 12-month return
The total loan amount is 8,725,000 euros, of which 5,000,000 will be funded by investors through the platform.
Full early repayment will be allowed at any time, subject to a minimum guaranteed return for the loan equivalent to 12 months of interest. A six-month extension beyond the initial 12 months is also permitted.
Regarding the loan repayment guarantees, the loan contract includes a first-rank mortgage guarantee on the registered property (the land) that forms the basis of the project, through a guarantee agent.
In this video, the developer and our Director of Real Estate, Sergio Arana, explain the key points of the Ribera del Pinar project.
Return by October 2025
The estimated term for this project is up to 12 months, with a possible 12-month extension at the 12-month mark. The construction permit is expected to be obtained between June and July 2025, and the 70% pre-sales level is expected to be reached between August and September of that same year. The refinancing of the Urbanitae loan by a bank, and therefore the exit of investors, would take place in October 2025.
Do you have any questions? You can ask them in the webinar we’ll hold with the developer on Monday, October 21 at 12:30 p.m. (UTC+2). You can also reach us at contact@urbanitae.com or (+34) 911 23 25 22.
Don’t miss the opportunity to invest in subsidized housing in Madrid with an 11.5% return in 12 months.
