New project: investing in an exclusive property next to Retiro Park

Next Monday, May 11 at 4:00 p.m. (UTC+2), we are opening for investment the Retiro project, a new real estate debt opportunity in Madrid.

• 📅 Investment opening: Monday, May 11 at 4:00 p.m. (UTC+2)
• 🎙 Project webinar: Monday, May 11 at 11:00 a.m. (UTC+2)

During this webinar, we will explain all the details of the project and answer investors’ questions.

A high-end refurbishment in the Retiro district

The project consists of granting a loan intended to partially finance the acquisition and refurbishment costs of an exclusive property with 189 sqm built area, located on the third floor of a building at 19 Antonio Acuña Street, in Madrid. The apartment is outward-facing, west-oriented, and features 171 sqm of interior built area. Following a full high-quality refurbishment, it will offer 3 bedrooms, 2 bathrooms, and 1 guest toilet, and will be delivered fully equipped and furnished under the commercial brand Home of Ambrose. The objective is to reposition the asset as a differentiated residential product, move-in-ready, targeting buyers seeking exclusive homes in Madrid’s prime areas. As this is an interior refurbishment, the works will be processed through a responsible declaration, eliminating the urban planning risk associated with obtaining a major construction permit.

Location: Retiro, one of Madrid’s most established districts

The asset is located in the Retiro district, next to Torre Valencia and just 300 meters from Retiro Park. This is one of the most sought-after residential areas in the capital, thanks to its combination of central location, urban quality, connectivity, services, and cultural, gastronomic, and commercial offering. The limited supply of fully refurbished high-end properties in Madrid’s prime areas further strengthens the commercial appeal of this type of home, especially among domestic and international buyers looking for exclusive, move-in-ready assets.

The sponsor: Home of Ambrose

The project sponsor is Home of Ambrose, a company specialized in transforming residential assets into high-end move-in-ready homes in Madrid’s prime areas. Its model covers the entire value-creation cycle: sourcing opportunities, design, construction works, interior design, furnishing, and commercialization. With more than seven years of experience, the sponsor works with a network of specialized collaborators to deliver a distinctive and consistent product. The estimated construction and furnishing period is 10 to 11 months, with a commercialization period of up to 12 months.

Current status of the project

The sponsor has already paid €180,000 as a deposit and is expected to complete the acquisition during the month of May. The remaining acquisition capital will be covered through the partners’ equity contribution – with an additional €620,000 injected at closing – and the loan provided by Urbanitae investors. Commercialization of the asset will begin after acquisition through an off-market strategy supported by agencies specialized in Madrid’s luxury residential segment.

9.5% return over 12 months

The transaction is structured as debt through a fixed-rate loan. Main characteristics:

• Amount: €1,370,000
• Interest rate: 9.5% annual simple interest
• Term: 12 months
• Possible extension: additional 6 months
• Minimum return: equivalent to 5 months of interest
• Repayment: bullet structure, with principal and interest paid at maturity

Full early repayment will be allowed at any time, subject to the minimum return indicated. Loan drawdowns will be made against monthly construction certifications validated by a project monitor.

Loan ratios and guarantees

The transaction presents a gross LTC of 56%, an LTV based on current appraisal value of 60%, and an LTGDV (loan-to-gross-development-value ratio, measuring the loan as a percentage of the project’s expected final value after development or refurbishment) of 46%, calculated on a target sale price of €2,800,000. The loan includes the following main guarantees:

• First-ranking mortgage over the underlying asset, with mortgage liability equal to 130%
• First-ranking pledge over the shares of the borrowing SPV
• First-ranking pledge over the SPV’s bank accounts
• Equity Commitment Letter
• Irrevocable sales mandate, with a discount of up to 20% on appraised value
• 100% cash sweep mechanism for repayment

Exit strategy

Investor exit and loan repayment are expected through the sale of the property once refurbishment has been completed. The sponsor’s objective is to reposition the asset as a high-end, fully equipped and furnished residence in one of Madrid’s most sought-after residential areas.