The Balcón del Sur project, financed by Urbanitae investors in December 2024, has been liquidated with the full repayment of the invested capital and the payment of accrued interest.
The transaction closes with a total return of 16.87% and an IRR of 11.22%, in line with the initial estimates and within the timeframe established in the loan agreement.
What Was Balcón del Sur?
Balcón del Sur was a real estate debt project aimed at financing the acquisition of land in Navalcarnero, Madrid, where the development of a protected housing project under a cooperative scheme was planned.
The transaction was led by Urbanismo y Gestión, a manager specialising in real estate development and cooperative management, with extensive experience in housing development, particularly in protected housing projects.
The project envisaged the development of a residential scheme comprising 144 VPPL homes with three bedrooms, communal areas, an adult swimming pool, a children’s pool and a play area. The homes would also include a storage room and one or two parking spaces, depending on the unit type.
The financing was structured through a loan secured by a first-ranking mortgage over the land, with an annual interest rate of 11.50%. The initial term was 12 months, with an additional 6-month extension contractually provided for.
A Transaction Linked to the Granting of the Licence and Bank Financing
The purpose of the loan was to facilitate the acquisition of the land by the manager in order to launch the development of the cooperative.
From the outset, the planned exit of the transaction was linked to two main milestones: obtaining the licence required to develop the project and securing bank financing. Once these conditions were met, the bank financing would enable the loan granted by Urbanitae investors to be repaid.
The loan agreement was signed on December 13, 2024. Subsequently, as the licence had not been obtained before the ordinary maturity date, the contractually agreed extension was activated. The licence was finally granted in March 2026, allowing the bank financing to enter and the loan to be subsequently liquidated.
Final Result for Investors
With this liquidation, investors recover 100% of the capital invested, together with the corresponding accrued interest.
The final project figures are as follows:
- Estimated term: 18 months
- Final term: 18 months
- Estimated total return: 16.87%
- Final total return: 16.87%
- Estimated IRR: 11.50%
- Final IRR: 11.22%
The project therefore closes within the expected timeframe and with a result in line with the initial estimates.
An Orderly Exit Within the Expected Framework
Balcón del Sur is an example of a debt transaction in which the mechanisms set out in the agreement made it possible to accompany the natural evolution of the project until the milestones required for its refinancing were achieved.
The granting of the licence and the entry of bank financing enabled the loan to be liquidated in an orderly manner, with full repayment of capital and interest to investors.
The closing of the project reinforces the importance of structuring transactions with guarantees, defined timelines and appropriate contractual mechanisms to manage potential timing deviations without altering the investment thesis.
