El Plantío: 11.6% IRR return, five months ahead of schedule
The El Plantío project is now part of Urbanitae’s track record. The investment closed with a final return of 12.1% and an IRR of 11.6%, completing its cycle five months earlier than initially estimated, without needing to activate the contractual extension.
This repayment, while slightly below the initially estimated CoC, reflects an orderly execution, solid time management, and an early exit that reduced the total risk assumed by investors.
What was the El Plantío project?
El Plantío was a debt project designed to finance the acquisition, demolition, and development of a residential project of six single-family homes in one of the most established residential areas in northwest Madrid.
The transaction was structured as a loan secured by a mortgage, with an estimated term of 21 months, intended to support the developer through the project’s early stages: asset purchase, planning and permitting process, and obtaining the building permit—an essential step for bringing in bank financing later on.
From the outset, the project was built around a clear exit strategy: once the permit was obtained, the developer would be able to secure a bank development loan to repay Urbanitae’s loan early, which is exactly what ultimately happened.
Partial amortization in April 2025
After the financing was successfully completed and the loan agreement was signed in early October 2024, the project progressed according to plan, with a strong focus on key urban-planning milestones.
In the first months, demolition works were carried out, while the building permit process advanced in parallel through an urban-planning collaborating entity (ECU). Although this process faced some administrative delays, the project continued to move forward in an orderly way, with no material deviations from its initial approach.
In April 2025, a partial loan amortization took place, linked to the sale of an asset serving as additional collateral. This allowed a significant portion of the investment to be repaid early and reduced overall risk exposure.
The decisive milestone arrived in October 2025 with the granting of the building permit, which unlocked negotiations for the bank development loan. After several months of work with the financial institution, finalizing that financing made it possible to fully repay Urbanitae’s loan in early February 2026, closing the project ahead of schedule.
12.1% return in 16 months
El Plantío closed with the following final results:
- Estimated term: 21 months
- Final term: 16 months
- Estimated CoC: 17.5%
- Final CoC: 12.1%
- Estimated IRR: 10%
- Final IRR: 11.6%
The early repayment enabled investors to recover their capital sooner than expected, reducing time at risk and improving the overall risk profile of the transaction.
A repayment aligned with the project’s logic
El Plantío is a good example of how, in debt projects tied to urban-planning milestones, the final return can be shaped by the actual execution timeline, especially when the exit occurs before the original maturity date.
In this case, securing the permit and bringing in bank financing enabled an early repayment, prioritizing capital protection and an orderly close over maximizing the theoretical CoC.
Once again, Urbanitae adds another repayment to its track record, reinforcing the role of real-estate debt as an effective tool to channel investment into real projects—with visible milestones and structures designed to protect investors.
