Capital gain projects
What are they?
In the Urbanitae area, capital gain projects are part of the general category of equity projects, which means that investors participate as partners in the company developing the project. This structure allows them to share with the developer the benefits obtained from the revaluation of the asset, as well as the risks inherent in the process.
Typically, these projects involve the development of new residential properties or the purchase and renovation of real estate assets with resale potential. The returns are generated when the asset is sold at a price higher than the total project cost, after deducting expenses and taxes. They generally do not offer periodic returns, as the profit is realized at the closing of the transaction.
Key aspects to consider
Partnership as a stakeholder: The investor enters the capital of the vehicle company, alongside the promoter, without taking on any management obligations.
Single return: Profits are shared once the project is completed, after the asset is sold and expenses are settled.
Investment horizon: Typically short to medium-term (18 to 36 months, depending on the project).
Higher return potential: Compared to other real estate investment types, although with a higher level of risk.
Critical factors: The promoter’s effective management, market trends, and cost control are key to the project’s success.
Exit strategy: Defined from the outset and is typically linked to the full sale of the asset.