Adaptis: when a project doesn’t go as expected

At Urbanitae, we always emphasize that real estate investment, like any other type of investment, carries risks. Not all projects meet their initial forecasts and, at times, the outcome can differ greatly from what was expected. This is what happened with Adaptis, a development of 20 single-family homes in Valladolid launched in 2021 and closed in July 2025 with a final return of 0%.

Although this is not the desired outcome –the initial forecast projected a gross return of 40% and an IRR of 18%– the project offers an important takeaway: thanks to Urbanitae’s constant management alongside the developer, it was possible to fully preserve investors’ capital and avoid losses.

What Happened in the Adaptis project?

The project began in 2021 with a valid building permit and a planned timeline of 26 months. However, a series of setbacks during its development doubled the timeline to 53 months:

• Rising costs and supply shortages: the pandemic and the geopolitical crisis increased material prices and caused delivery delays.
• Change of contractor: in 2022, the initial contractor (CHR) filed for bankruptcy. The project had to be relaunched with a new contractor (ACR), which meant additional time and significant extra costs.
• Commercial lag: despite marketing efforts and the launch of a show home, sales did not progress as expected. By 2023, only 23 of the 33 homes had preliminary sales agreements, forcing discounts in the final stages.
• Rising financial costs: higher interest rates and the extended timeline increased financing and management expenses.

In the end, revenues slightly exceeded projections, but construction, financing, and sales overruns completely absorbed the margins. The result: a final return of 0%.

Management as a Key Differentiator

In situations like this, Urbanitae’s absolute priority is the protection of investor capital. From the deed of the last home in March 2025, all negotiations focused on ensuring a reasonable settlement and avoiding the risk that the project company would be tied up with provisions exceeding €200,000, which could have delayed repayment by years.

The outcome was not as expected, but it reflects Urbanitae’s commitment to accompany each project from day one until final closure, always seeking to minimize risks and ensure the most orderly exit possible. After countless negotiations, the decision was made to exit without profit –yes–, but also without risk for investors.

Lessons for the Future

Adaptis illustrates how external factors –pandemic, material shortages, construction inflation– can impact even well-planned projects. But it also demonstrates how rigorous management can limit damage and protect what matters most: capital.

At Urbanitae, we continue to strengthen our selection and monitoring criteria, incorporating every experience to improve in the future. Because investing carries risks, but also lessons that allow us to grow as a platform and as an investor community.