Next Monday, 19 October at 16:00 (UTC+2), we will open the Torres en Prosperidad project for investment, a new debt transaction to finance the acquisition and conversion of two commercial premises in Madrid and Alcorcón.
The main development involves converting commercial premises in Madrid’s Prosperidad neighbourhood into 65 storage units, ten of which have already been reserved. The transaction also includes a second property in Alcorcón, which will be converted into five apartments.
The project is being undertaken by a developer with extensive previous experience working with Urbanitae, which has specialised for years in converting properties into storage units, garages and homes. To date, we have financed 22 transactions with this developer, of which 15 have already been repaid to investors.
The loan amounts to €1,105,000, with a term of 18 months and a fixed interest rate of 11% per annum, simple interest. It also includes a make-whole provision equivalent to the full 18 months of interest.
- Investment opening: Monday, 19 October at 16:00 (UTC+2)
- Investment amount: €1,105,000
- Term: 18 months + possible six-month extension
- Interest: 11% per annum, simple interest
65 storage units in Prosperidad
The main development is located at 14 Calle Matilde Díez, in the Prosperidad neighbourhood, close to Prosperidad, Alfonso XIII and Cruz del Rayo metro stations.
The premises will be converted into 65 storage units, an asset type designed to meet a very specific need in established urban areas, where many homes lack sufficient storage space. Of the 65 planned units, ten have already been reserved.
The transaction also includes a second commercial property at 3 Calle Tablas de Daimiel, in Alcorcón, which will be converted into five apartments.
The developer has signed deposit agreements to acquire both properties. The loan provided by Urbanitae investors will finance their acquisition and part of the construction costs.
Construction can begin without waiting for a conventional building permit
The Prosperidad development has a Responsible Declaration processed through the corresponding Urban Planning Collaboration Entity (ECU), meaning construction can begin once financing has been formalised, without waiting for a conventional building permit to be granted.
The Alcorcón project, meanwhile, has received a favourable urban planning feasibility assessment.
Construction is expected to take approximately 16 months, within the overall loan term of 18 months.
A developer with extensive experience working with Urbanitae
The developer has more than 20 years of experience in property development and also has its own construction company.
Since 2017, it has operated a specialised business line focused on acquiring and converting properties into storage units, parking spaces and homes, particularly in major cities where the supply of this type of property is limited.
The developer also has an extensive track record with Urbanitae: we have financed 22 transactions, of which 15 have already been repaid to investors.
11% annual interest and a minimum return equivalent to 18 months
The transaction is structured as a fixed-rate loan granted by Urbanitae investors to the development company.
Its main terms are:
- Amount: €1,105,000.
- Interest: 11% per annum, simple interest.
- Term: 18 months.
- Possible extension: an additional six months.
- Interest payment: at maturity.
- Make-whole (minimum return): 18 months of interest.
This means that even if the developer repays the loan early, investors will be entitled to receive at least the interest corresponding to the full 18 months, equivalent to a return of 16.5% on invested capital.
Loan security
The financing includes a security package linked to both properties:
- Undertaking to grant a first-ranking mortgage over the Prosperidad premises where the 65 storage units will be developed.
- Undertaking to grant a first-ranking mortgage over the Alcorcón property where the five apartments will be developed.
- Pledge over the shares of the project’s special-purpose vehicle.
The planned exit for investors will take place through the sale of the developed units.
Why invest in Torres en Prosperidad?
We believe Torres en Prosperidad is a straightforward opportunity to understand: a new storage unit project in an established Madrid neighbourhood, complemented by a second residential development in Alcorcón and promoted by one of the developers with the longest track records on the platform.
The main highlights include:
- 11% annual simple interest.
- Minimum return of 16.5%, thanks to the 18-month make-whole provision.
- Undertakings to grant first-ranking mortgages over both properties.
- 10 of the 65 storage units already reserved.
- Prosperidad project ready to begin construction under a Responsible Declaration.
- 22 transactions financed with the developer, of which 15 have already been repaid to investors.
- The developer’s specific experience converting properties into storage units, garages and homes.
Estimated timetable
The loan term is 18 months, with a possible additional six-month extension.
The main planned milestones are:
- Fourth quarter of 2026: loan disbursement, acquisition of the properties and project commencement.
- First quarter of 2028: expected completion of construction and loan repayment.
As with any real estate investment, these timeframes may change depending on the project’s actual progress.
You can find full information about the transaction, its risks, security arrangements and supporting documentation on the project page.
Do you have any questions about the project?
Torres en Prosperidad will open for investment on Monday, 19 October at 16:00 (UTC+2).
You can also email us at contacto@urbanitae.com or call us on (+34) 911 23 25 22.
