New project! Residential loan in Valencia with 13% return
At Urbanitae, we continue to focus on investment opportunities in locations with high residential demand. Today, we present a new debt project located in Albal (Valencia), which will open for funding on Friday, July 4 at 12:00 p.m. (UTC+2). This opportunity is structured as a single-tranche loan with an annual return of 13% over an 18-month term, with the option to extend for an additional 6 months.
A value-added project from the initial phase
The Albal project involves the partial financing of the purchase of three defaulted loans, whose first-ranking mortgage collateral is a plot of land in the town of Albal. The land is currently leased to a national supermarket chain as a surface-level parking lot. The funds provided by Urbanitae investors will be used to finance part of the acquisition and associated costs.
The plan is divided into two phases. In Phase I, the manager – Viviz, a company with extensive experience in managing real estate assets in the province of Valencia – will aim to obtain ownership of the asset and terminate the current lease agreement. This may be achieved either through a negotiated settlement with the involved parties or, alternatively, by subrogating into the already court-approved foreclosure procedure.
In Phase II, once ownership of the asset is secured, the manager will apply for a license to develop a residential project of approximately 200 homes. The land is already zoned for development and has a total buildable area of 17,511 m² on a plot of 3,670 m², with the possibility of underground parking.
High-potential location in the Valencia metropolitan area
Albal is part of l’Horta Sud, one of the most densely populated areas in the southern metropolitan region of Valencia. It benefits from excellent connectivity via the V-31 and A-7 highways. Additionally, a new Renfe commuter train station is under construction just 400 meters from the site, which will connect the area with central Valencia in under 15 minutes. This is a consolidated area with infrastructure, green spaces, and services, making it ideal for the development of multi-family housing.
In this video, we explain the key points of the project.
Investment terms
Urbanitae investors will participate in the Albal project through a fixed-rate loan offering a 13% annual interest, and a total estimated return of 19.5% at maturity. The loan has an initial term of 18 months, extendable by 6 months if needed. Both principal and interest will be repaid at maturity.
Additionally, there is a minimum guaranteed return equivalent to 9 months of interest, which means that even in the event of early repayment, investors will receive a minimum return of 9.75%.
Security structure
During the first phase of the loan, before the asset is awarded, the project will be backed by:
- Corporate guarantees from the two parent companies of the borrowing entity (with a balance sheet > €8M and EBITDA > €700,000)
- First-ranking pledge on the SPV’s shares and bank accounts
Once the asset has been awarded, the guarantees will convert into:
- First-ranking mortgage on the land
- First-ranking mortgage on the parking spaces, if their acquisition from the supermarket is agreed
- First-ranking pledge on the project’s shares and bank accounts
Fourth project with Viviz
This is Viviz’s fourth project on Urbanitae, and its second debt project. In 2024, it successfully repaid the Montesano project, which recorded the highest IRR to date for a residential debt project on Urbanitae (≈23%). Viviz’s management team has extensive experience, including previous roles at companies such as Grupo Llanera.
Why invest in this project?
- 13% annual return with minimum guaranteed yield
- Project led by a proven, experienced manager
- Fully zoned land in an area with strong development potential
- Strong corporate and mortgage-backed guarantees
- Clear exit strategies: either refinancing via development loan or asset sale
Got questions?
Join our webinar with the manager on Wednesday, July 3 at 12:00 p.m. (UTC+2) to get answers to all your questions about this project. Don’t miss it – it’s the best way to explore this opportunity in depth.
Funding for the Albal project will open on Friday, July 4 at 12:00 p.m. (UTC+2) with a maximum investment ticket of €3,000 per user. If you have any questions, feel free to contact us at contacto@urbanitae.com or call us at (+34) 911 23 25 22.
Don’t miss this chance to invest in a strategic project in Valencia!
