On Monday, May 25 at 4:00 pm (UTC+2), we will open Project Vértice for investment, a new real estate debt opportunity in Pozuelo de Alarcón, Madrid.
- 📅 Investment opening: Monday, May 25 at 4:00 pm (UTC+2)
- 🎙 Project webinar: Friday, May 22 at 12:00 pm (UTC+2)
During the webinar, we will be joined by Santiago Gilarranz, Director of Grupo Frangla, who will explain all the details of the project and answer investors’ questions.
Three luxury townhouses in Pozuelo
The project consists of refinancing the existing loan secured against the parent plot — which will be subdivided into three separate plots — and partially financing the construction costs of three luxury townhouses located at Calle El Plantío 7, in Pozuelo de Alarcón.
Once completed, each villa will have an interior built area of between 310 sqm and 331 sqm, distributed across a basement, two main floors and an attic level. All homes will include a private garden and individual swimming pool.
The project already has a building permit granted by Pozuelo de Alarcón Town Hall for a fully urbanised residential plot. In addition, demolition works have already been completed and foundation works have begun, meaning the development is fully underway and urbanistically validated.
Location: Pozuelo de Alarcón, one of Madrid’s most sought-after residential areas
The asset is located in Pozuelo de Alarcón, recognised as one of the municipalities with the highest per capita income in Spain and one of the most desirable residential locations for high-income families.
More specifically, it is situated in the Zona Estación area, a residential environment known for its strong connectivity, with immediate access to the A-6 and M-40 motorways, and close proximity to the Aravaca and Pozuelo commuter rail stations.
The area also benefits from prestigious international schools, leading retail areas and a very limited supply of new-build homes, reinforcing the attractiveness of the asset and the strength of demand.
The sponsor: Grupo Frangla
The project sponsor is Grupo Frangla, a boutique developer specialising in high-end residential developments priced below €2 million.
The group covers the entire development cycle and has its own construction company, Boceto, responsible for the execution of the works. This vertical integration allows for greater control over costs, timelines and construction quality.
The estimated construction period, obtaining first occupancy licences and final project completion is expected within a maximum term of 16 months, under a loan with a financial term of 20 months, plus a possible 6-month extension.
A project already underway with advanced pre-sales
The sponsor has already invested approximately €625,000 in the acquisition of the plot. The remaining capital required for the development will be covered through additional sponsor equity, committed buyer deposits and the loan provided by Urbanitae investors.
The project benefits from very strong commercial visibility: 2 of the 3 homes already have signed reservation agreements, while the third unit is at an advanced commercialisation stage.
The loan is divided into two tranches:
- Tranche A: €1,310,000, allocated to refinancing the principal and accrued interest of an existing mortgage loan.
- Tranche B: up to €990,000, allocated to financing the remaining construction costs.
Drawdowns for the construction tranche will be made progressively against monthly construction certifications validated by an independent Project Monitor.
Transaction structure
The transaction is structured as debt financing through a fixed-rate loan.
The total loan amount is up to €2,300,000, committed in two tranches. In this opening, Tranche A will be financed under the following terms:
- Tranche A amount: up to €1,310,000
- Interest rate: 10.5% annual simple interest
- Total return: 17.5%
- Term: 20 months
- Possible extension: an additional 6 months
- Principal and interest payment: at maturity
Full early repayment will be permitted at any time, subject to a minimum return equivalent to 15 months of interest.
The transaction presents a gross LTC of 67.7% at loan closing and an LTV of 49.7% based on the estimated sales value of €4,630,000.
Loan guarantees
The loan benefits from a relevant package of guarantees:
- First-ranking mortgage over the registered plots corresponding to the three homes, with mortgage liability equivalent to 140% of the loan principal.
- First-ranking pledge over the shares of the project development company.
- First-ranking pledge over the current accounts and VAT account of the borrowing SPV.
- Equity Commitment Letter guaranteeing additional capital contributions if required.
- 100% cash-sweep mechanism over the purchase proceeds received upon signing the deeds of sale, allocated primarily to repay loan principal and accrued interest.
Exit strategy
The repayment of the loan will take place through the cash flow generated from the completion and signing of the sales deeds for the homes.
Commercial risk is significantly mitigated, as two of the three units already have formal reservations in place and the third unit is in an advanced commercialisation phase.
Why invest in Project Vértice
These are some of the project’s key strengths:
- Prime location in Pozuelo de Alarcón, one of the most established and sought-after residential areas in northwest Madrid.
- Commercial risk largely mitigated, with 2 of the 3 units already reserved.
- Project with granted building permit and construction already underway.
- First-ranking mortgage guarantee over the three homes.
- Fixed annual return of 10.5% simple interest.
- Conservative ratios, with an LTV of 49.7% based on the estimated sales value.
- Developer with its own construction company, allowing for greater control over execution, costs and timelines.
Estimated timeline
The estimated term of the project is 20 months for Tranche A and 14 months for Tranche B, with a possible additional extension of 6 months.
Main projected milestones:
- May 2026: granting and activation of Tranche A to refinance the existing bridge loan.
- November 2026: granting and activation of Tranche B to continue construction works.
- Q2–Q3 2027: completion of construction works and obtaining first occupancy licences.
- Q4 2027: execution of public deeds of sale, handover of the homes and full repayment of principal and accrued interest to Urbanitae investors.
A debt opportunity in a prime residential location
Project Vértice allows investors to participate in the financing of three luxury townhouses in Pozuelo de Alarcón, a residential market characterised by strong demand and a very limited supply of new-build homes.
The combination of advanced pre-sales, granted building permit, construction already underway, first-ranking mortgage guarantee and a sponsor with its own construction company reinforces the attractiveness of this transaction within Urbanitae’s real estate debt offering.
Remember: Project Vértice opens for investment on Monday, May 25 at 4:00 pm (UTC+2).
Do you have questions about the project?
If you would like to learn all the details of the transaction, you can submit your questions during the webinar on Friday, May 22 at 12:00 pm (UTC+2).
You can also contact us at contacto@urbanitae.com or call us on (+34) 911 23 25 22.
