Francos II continues a transaction already familiar to Urbanitae investors: the development of a newly built office complex in Porto’s CBD, next to Francos metro station, in the heart of the Boavista district.
The original Francos project, presented in April 2025, marked Urbanitae’s entry into the Portuguese office market through a value-add strategy: development, multi-tenant leasing, rental income stabilisation and subsequent sale of the asset. This new offering now allows the completion of the equity ticket originally planned for the project, a contribution that was not required at the time of the initial launch.
- 📅 Investment opening: Tuesday, June 9 at 4:00 p.m. (UTC+2)
- 🎙 Project webinar: Friday, June 5 at 11:00 a.m. (UTC+2)
An office project in Porto’s CBD
Francos II offers investors the opportunity to participate in the development of a newly built office complex located on Rua Tenente Valadim, next to Francos metro station, in the Boavista area, considered Porto’s main office district.
The project comprises 20,588 m² of above-ground built area, distributed among office spaces, auditoriums, coworking areas, other commercial spaces and 180 parking spaces.
Location is one of the project’s key strengths: it is a well-established urban area with excellent connectivity, services and strong demand for high-quality office space.
Continuation of an ongoing project
Since the first fundraising round, the project has achieved several important milestones. The land was acquired in June 2025 and architectural approval was granted in April 2026. In addition, the specialist engineering project is currently being submitted to Porto City Council, with filing expected in June 2026.
These developments significantly reduce permitting risk, and construction is scheduled to begin in July 2026.
The manager: Osborne+Co
The project sponsor is Osborne+Co, a global developer and investor specialising in high-quality sustainable projects across the office, industrial and mixed-use sectors.
The company has more than 30 years of experience and has delivered over 50 international projects, with particular expertise in large-scale commercial and residential developments.
In this project, both Osborne+Co and the contractor, MAP, have committed their own capital, aligning their interests with those of Urbanitae investors.
Value creation strategy
The investment thesis is based on developing a newly built office asset in a market characterised by a shortage of available supply.
Once construction is completed, the leasing phase will begin, with the goal of maximising occupancy and stabilising rental income before selling the asset. The building will be marketed as a multi-tenant office property, with an estimated operational period of approximately 12 to 18 months.
The asset sale is projected at a 6% yield. Both rental assumptions and exit values in the business plan have been validated through a market report prepared by Savills.
15% preferred IRR for Urbanitae investors
The transaction is structured through a capital increase. Urbanitae investors will invest through the special-purpose vehicle BAYAZ PROPERTIES 4, S.L., which will subsequently acquire a stake in the project development company, COLINA METAFÓRICA, LDA.
Urbanitae’s ticket amounts to €2,000,000, and the estimated project duration is 32 to 36 months.
The agreed structure grants Urbanitae investors a preferred annual IRR of 15% on invested capital. This means that neither the developer nor its partners may recover their investment or receive profits until Urbanitae investors have fully recovered their capital and achieved this preferred return.
In addition, the SPV has anticipated bank financing from a leading Portuguese bank to cover construction development costs.
Why invest in Francos II
Some of the project’s key strengths include:
- Prime location in Porto’s CBD, next to Francos metro station.
- Newly built office development in a market with limited supply.
- Architectural approval already granted, with construction scheduled to start in July 2026.
- International developer specialised in office and mixed-use projects.
- Developer and contractor capital commitment, aligning interests with investors.
- 15% preferred IRR for Urbanitae investors.
- Protected downside, as Urbanitae’s invested capital ranks ahead of the developer’s capital.
Project financial information
For equity projects, applicable regulations do not allow crowdfunding platforms to communicate a specific estimated return.
For this reason, Urbanitae publishes three financial scenarios on each project page – favourable, base and adverse – using different revenue and cost assumptions.
In all cases, returns are calculated using the same formula:
(Projected Revenue – Estimated Costs) / Total Equity
All financial information, together with project documentation, the market report and comparable transactions, will be available on the project page.
Estimated timeline
The estimated duration of the transaction is 32 to 36 months.
The main projected milestones are:
- June 2026: equity investment and submission of the specialist engineering project.
- July 2026: start of construction works.
- Q2 2028: completion of construction and start of operations.
- Q2 2029: sale of the asset and liquidation of the project company.
As with any real estate investment, timelines may vary depending on the actual progress of the project and market conditions.
A new opportunity in Porto’s office market
Francos II offers exposure to a value-add transaction in one of Portugal’s most dynamic office markets, featuring a newly built asset, a prime location and an experienced international sponsor.
The combination of limited supply, permitting progress, sponsor co-investment and a preferred-return structure for Urbanitae investors strengthens the attractiveness of this opportunity.
Do you have questions about the project?
If you would like to learn more about the transaction, you can ask your questions during the webinar on Friday, June 5 at 11:00 a.m. (UTC+2).
You can also contact us at contacto@urbanitae.com or call us on (+34) 911 23 25 22.
