New project! Participating loan with a fixed annual return of 10%

Next Friday, March 13 at 12:00 p.m. (UTC+1), a new investment opportunity will open in the senior living sector in Torres de la Alameda.

This is a transaction structured through a participating loan to finance part of the acquisition of an operational nursing home, with the aim of stabilising the asset with a new professional operator and later selling it to an institutional investor.

• Investment opening: Friday, March 13 at 12:00 p.m. (UTC+1)
• Project webinar: Thursday, March 12 at 16:00 p.m. (UTC+1)

In this webinar, we will be joined by Ofer Lior, partner at NP Advisors, who will explain the details of the project and answer investors’ questions.

An operational nursing home with 146 beds

The project consists of partially financing the purchase of an operational nursing home that has been active for more than 25 years, located on Miguel de Unamuno street, in Torres de la Alameda (Madrid).

The asset includes:

• 135 rooms (124 single and 11 double)
• 146 total beds
• 50 day-care places
• A 4,894 sqm plot
• A building with 3,827 sqm of built area

Following the acquisition, the manager will bring in a new professional nursing home operator, one of the ten leading operators in Spain by number of managed beds.

This operator will run the asset under a 25-year triple net lease, with 15 years of mandatory compliance, which will allow the investment to stabilise before its sale to an institutional investor.

Location: Corredor de Henares

The nursing home is located in the urban centre of Torres de la Alameda, a municipality within the metropolitan area of the Corredor de Henares, one of the most dynamic economic areas in the Community of Madrid.

The asset enjoys a convenient location for day-to-day life, with essential services just a few minutes away — supermarkets, healthcare centre and municipal facilities — and good road connections via the M-225 and M-220.

The nursing home’s catchment area (municipalities located within a 15-minute drive) currently brings together more than 97,000 inhabitants, of whom more than 13,000 are over the age of 65. This senior population is expected to grow by around 43% over the next 13 years, reinforcing the potential demand for nursing home places.

The project manager

The transaction is managed by NP Advisors, a real estate investment firm whose founding partners created, in 2018, a SOCIMI focused on income-generating assets in Spain.

The team has more than 50 years of combined experience in the sector and currently manages 15 real estate assets valued at over €80 million, including hotels, serviced apartments and nursing homes.

Its recent transactions include several senior living deals, providing specific expertise in this type of asset.

How the participating loan works

Urbanitae investors will participate by granting a participating loan to RG Torres de Alameda, S.L.

This type of financing combines a fixed interest rate with a variable return linked to the outcome of the project.

Main features:

• Loan amount: up to €2,200,000
• Fixed annual interest rate: 10%
• Variable participation: between 60% and 65% of the manager’s profits derived from rental income and the sale of the asset
• Term: 24 months
• Possible extension: 6 additional months

Interest and principal will be paid at the maturity of the loan.

Loan guarantees

The transaction includes several structural guarantees:

• Promise of a second-ranking mortgage over the asset
• Pledge over the shares of the company owning the asset (convertible into equity)
• Asset sale mandate in the event of default
• Veto or approval rights for Urbanitae over the sale of the asset above a certain return threshold (net yield of 6.75%)

Value creation and exit strategy

The project strategy consists of three main phases:

• Acquisition of the asset through combined financing (manager equity, bank financing and participating loans)
• Entry of a new operator under a long-term lease contract to stabilise the asset
• Sale of the asset to an institutional investor or private buyer specialised in this type of property

The planned exit for investors will take place through the sale of the asset once stabilised.

Estimated timeline

The estimated duration of the project is 24 months, with a possible 6-month extension.

• March 2026: loan granting, asset acquisition and lease formalisation
• Q2 2026: start of the asset marketing process
• Q2 2027: sale of the asset and repayment of investors’ loan, together with fixed and variable interest