We are excited to announce our third project of the week! This time, we are heading to Madrid, one of the cities with the highest housing demand, to develop a residential project with up to 38 units in collaboration with Grupo Abauco. If you’re looking to invest in housing in the center of Madrid, top up your wallet because this opportunity will open on Thursday, February 27, at 4:00 PM (UTC+1). Here are all the details.
The Embajadores 199 project takes its name from its location: 199 Embajadores Street in Madrid. There, we will partner with the developer to build a new residential complex with up to 38 apartments with one, two, and three bedrooms, situated in the Arganzuela district. All units will include a parking space and a storage room. The development will also feature a communal swimming pool, landscaped common areas, a meeting room, a gym, and concierge services.
The project involves acquiring a building with street frontage and an adjacent warehouse located in the inner courtyard. The building will be renovated and will have five floors plus an attic level, while the warehouse will be restructured to create ground-floor residential units.
The location is excellent: close to all essential services, just five minutes from Enrique Tierno Galván Park, 10 minutes from the Arganzuela-Planetario metro station, and five minutes from Atocha Station.
We are once again partnering with Grupo Abauco, with whom we have already financed six projects on our platform. Grupo Abauco is a real estate development company founded in 2019, but its management team boasts over 15 years of experience in the sector, having been involved in national and international projects totaling over 500 million euros in investments.
Capital Gains Strategy
This project follows a capital gains strategy, which involves partnering with the developer to carry out the housing development. The total investment for this project amounts to €4,410,000. The contributions from Urbanitae investors will be used for acquiring the asset and covering initial project costs until the developer loan is granted.
As a reference, in the López de Hoyos project, financed by Grupo Abauco together with Urbanitae in October 2024, the developer loan has just been secured with a top-tier financial institution.
The developer has already signed a purchase agreement for the asset, which is free of encumbrances. The building permit application will be submitted in Q2 2025 and is expected to be approved in Q4 2025 or Q1 2026.
Sales have not yet begun, meaning there are currently no reservations for the units. The sales process will be led by the developer, and the target buyers will primarily be domestic buyers looking for a primary residence.
Preferred Return of 15% IRR
Regarding the investment structure, a distribution scheme has been negotiated to include a preferred return for Urbanitae investors, ensuring a net IRR (after corporate tax) of at least 15% per year. This structure safeguards investor returns against potential cost overruns or timeline deviations.
Watch this video for a full breakdown of the project:
Estimated Returns in 34-38 Months
The estimated project duration is 34-38 months.
- Q1 2025: Capital increase, asset acquisition, and permit application.
- Q4 2025 – Q1 2026: Expected approval of building permits and start of construction.
- Q3-Q4 2027: Construction completion.
- Q4 2027 – Q1 2028: Delivery of homes and distribution of returns to Urbanitae investors.
Join Our Webinar
Have questions? Join our webinar with the developer on Monday, February 24, at 12:00 PM (UTC+1), where we’ll address all your concerns.
You can also contact us at contacto@urbanitae.com or call us at (+34) 911 23 25 22.
Don’t miss this opportunity to invest in a prime residential project in the heart of Madrid! We look forward to seeing you!
