New success for Urbanitae and Grupanxon with a 20% IRR
Talking about the Grupanxon-Urbanitae partnership is synonymous with guaranteed success. And for good reason. With Grupanxon, one of our flagship developers, we have financed no less than 14 projects. Today, in our series of success stories, we focus on the Ciudad Lineal project in Madrid. This residential asset is located on Calle de las Cañas, parallel to López de Hoyos at the intersection with Calle Arturo Soria.
Grupanxon is a business holding company with over 20 years of experience in real estate development. Since 2017, it has had a business line specializing in the development of parking spaces and storage units to address the scarcity of square meters in major cities like Madrid. It has been the developer for projects such as Magallanes, Prosperidad, Simancas, Hortaleza-Bellas Vistas, Puerta del Ángel, and Paseo Imperial, among others, most of which were closed in record time and returned to investors, improving investment returns in all cases.
Regarding the Ciudad Lineal project, the operation consisted of developing a promotion of 55 storage units that was financed in 12 minutes, which was then a record for Urbanitae. Additionally, we were pioneers in launching this type of asset, which has been very well received by our investors. The storage units, ranging in size from 4 to 20 square meters, have direct street access, a parking area, and a loading and unloading zone.
Improved IRR and early deadlines
In October 2020, 44 investors contributed 250,000 euros for a fixed-rate loan. The developer had signed a deposit agreement for the acquisition of a space of more than 500 square meters, to be transformed into an area with independent storage units.
The project concluded with a final return of 15%, three months ahead of schedule – reducing the projected 12 months to nine – placing the IRR above 20% – the target IRR was 15%. Thus, as with other projects, the developer managed to shorten construction times and settle the operation ahead of schedule, having signed enough storage units to service the debt.
Keys to success
The developer had extensive experience in Madrid, Málaga, and Sevilla.
At that time, this was the third operation financed by Grupanxon on our platform. Today, as mentioned, there are now 14 projects carried out jointly with Urbanitae.
The company processed the building permit through a responsible declaration, so it was not necessary to process a file with the municipal administration to start the work.
At the launch of the project, 26 units were already reserved.
It was a loan-structured operation, so it was not necessary to wait for the sale of all the units to receive loan returns.
Grupanxon’s commitment to crowdfunding
Grupanxon’s extensive experience with Urbanitae has already won over hundreds of investors and is the best proof of the success of real estate crowdfunding as an alternative to bank financing.
If you also want to be part of our investor community and join operations like this one, you can register on our platform and stay tuned for upcoming investment opportunities. For any questions, we will be happy to answer them via email at contacto@urbanitae.com or by phone at (+34) 911 23 25 22.