More Than 10% IRR in Madrid: Castellanos Project Return
At Urbanitae, we have successfully closed a new debt project in Madrid. The Castellanos project, financed in July 2024 together with the manager Grupanxon, delivers a 10.06% IRR and a 12.43% gross return on the initial investment. With this return, we have now fully returned 70 projects on the platform and completed 14 successful projects with Grupanxon, establishing them as one of the most reliable and consistent managers in our database.
What the Castellanos Project Involved
Castellanos was structured as a €550,000 debt project, arranged through a fixed-rate loan of 10% per year with a 12-month term, extendable up to an additional 3 months. The financing was allocated to two separate developments in Madrid:
- Transformation of a property in Carabanchel into five tourist accommodations registered as guest houses, which the developer would retain for patrimonial operation.
- Conversion of a property near Manuel Becerra into 44 storage units intended for sale to local residents and small investors, a type of asset in which Grupanxon has extensive experience.
The project was attractive due to its tactical and agile design: early commercial progress, use of self-certification to shorten construction timelines, and a low investment ticket, which facilitated broad investor participation.
Results: Achieved Returns and Adjusted Timeline
Although the natural term of the loan was 12 months, Castellanos included a contractual 3-month extension to ensure completion of construction and sales. The operation ultimately took 16 months, although the IRR is calculated over the estimated 15 months, as the extension was already contemplated. The result is satisfactory: a 10.06% IRR versus the 10% forecast and a total return of 12.43%, almost exactly in line with the initial target.
This represents solid performance, consistent with the tactical nature of this type of debt project and the manager’s execution capacity.
Grupanxon: 14 Projects Successfully Returned
Castellanos reinforces Grupanxon’s record as one of the managers with the best historical performance on Urbanitae. Their model—based on purchasing properties in established areas, agilely converting them into storage units, and analyzing real local demand—has proven robust even in changing market contexts.
With 14 projects successfully returned, Grupanxon is one of the top-performing managers on the platform. Their experience in tourist accommodations and guest houses, aimed at medium-term stays in areas with strong student and residential activity, adds clarity to repayment flows and reduces uncertainty in timelines and sales—two key variables in short-cycle debt projects.
A New Milestone in Returned Projects
The full return of Castellanos is part of the ongoing strengthening of our track record. With 70 projects returned and an average IRR above 12%, Urbanitae continues to offer clear, well-analyzed investment opportunities managed by developers with aligned interests.
As always, if you have any questions about this return or want to learn about currently available projects, our team will be happy to assist at contact@urbanitae.com or (+34) 911 23 25 22.
We will continue to update the blog on upcoming returns and new real estate investment opportunities.
