Tag: rental income project

  • Invest in Zaragoza with a 5.4% annual dividend

    Invest in Zaragoza with a 5.4% annual dividend

    We have a new project on Urbanitae! We are returning to the rental strategy, and this time, we invite you to invest in Zaragoza with an average annual dividend of 5.4%. It will be on Monday, January 22nd at 4 p.m. Do you want to know more details?

    The Pepco Delicias project involves the acquisition of a commercial space leased to Pepco, the low-cost fashion, home, and leisure store chain. The mentioned space is located in Zaragoza, in the central Delicias neighborhood. The asset consists of three land registries on the ground floor of a residential building. The gross leasable area (GLA) exceeds 1,200 square meters, and it is all at street level.

    GPA (Grupo Patrimonial Actur) is the promoter of this project. It is new to the platform, but the company has more than 30 years of experience in managing and investing in rental real estate assets. Currently, it manages the assets of several family offices and focuses on finding top-level tenants with long-term contracts in established locations, just like the Pepco Delicias project.

    As for Pepco, it is a chain of Polish origin that sells low-cost clothing and home products and already has more than 3,000 stores in 17 European countries. In Spain, Pepco already has 160 establishments, which will be 200 by the end of the year if the company’s forecasts are met.

    Annual return of 5.40% for 5 years

    The tenant of the space is Pepco Group since June 2023, with a 15-year lease contract, six of which are mandatory. Pepco took possession of the space in November 2023; it is currently undergoing a comprehensive renovation that will be completed in May 2024, the scheduled opening date to the public.

    Like any rental project, Pepco Delicias is structured as equity. Urbanitae investors, along with additional private investors, will make a capital increase in the operation’s vehicle company. This company does not plan to seek bank financing to purchase the space. For Urbanitae investors, the ticket amounts to 1,450,000 euros.

    The project has a duration of 5 years. According to the lease contract signed by Pepco, we estimate that the project will generate an average annual dividend of 5.40% for Urbanitae investors, distributed quarterly. In addition, a sales option contract has been signed with GPA, which will come into effect from the 2nd year after the asset’s purchase. Naturally, the sale of the asset will generate additional profitability from capital gains, which you can calculate for each of the scenarios detailed in the project sheet.

    In this video, Javier Palacio, founding partner of GPA, and Diego Bestard, CEO of Urbanitae, explain the details of the Pepco Delicias project.

    However, if you have any questions about the project, you can ask them in the webinar we will hold with the promoter next Friday, January 18, at 12 p.m. And, as always, you can write to us at contacto@urbanitae.com or call us at 911 23 25 22. Invest with us and achieve an annual dividend with low risk!

  • New rental income project with an 8% average annual dividend!

    New rental income project with an 8% average annual dividend!

    We present a new project! Next Friday, the 10th, at 12 p.m., we will open our rental income project for funding in partnership with Holdensland. This time, we offer you the opportunity to invest in a rental income project with an average annual dividend of 8%.

    The Manuel Luna project involves the acquisition and transformation of a commercial space into 7 tourist apartments, their lease, and subsequent sale to a real estate investor. The asset is located in the Tetuán neighborhood (Madrid), specifically at Manuel Luna Street 8, next to one of the city’s main tourist attractions, the Santiago Bernabéu Stadium. It is a well-established residential area with all kinds of services.

    For this project, we are collaborating with Holdensland, a business group with more than 15 years of experience in renovating spaces of similar characteristics.

    8% annually for 5 years

    Like all our rental income projects, the Manuel Luna project has an equity structure. Both the promoter and Urbanitae investors will make a capital contribution to the project’s special purpose vehicle. These contributions will enable the complete development of the project, including the acquisition of the asset, its subsequent renovation, and all related costs. The operation is not expected to rely on bank financing. The contribution from Urbanitae investors will be equivalent to €1,040,000.

    The project has a duration of five years, and it is estimated that it will generate an average annual dividend of 8% from the completion of the construction and the start of activity by the operator. Dividends will be distributed quarterly (in natural quarters). If the cash flow allows for a dividend greater than 8.00%, the surplus will remain as retained earnings in the company and will be used for future distributions. In case the cash flow is insufficient to distribute the 8.00%, the maximum available cash will be distributed, always respecting a minimum cash balance equivalent to two months of rent. The first dividend payment is expected in the first quarter of 2025.

    In this video, Ángel Pérez, director of Holdensland, and Diego Bestard, CEO of Urbanitae, explain the key aspects of the project.

    Lease agreement with Dobo Homes

    The tourist apartments will be operated and managed by Dobo Homes, a company with over 5 years of experience in managing tourist apartments and currently managing more than 150 units in 6 locations in Madrid and Toledo.

    The project has a duration of 5 years, with quarterly dividend payments planned. In the fourth quarter of 2023, the capital increase by Urbanitae investors and the acquisition of the commercial space through the formalization of the sales contract are expected to be completed. The construction is expected to be completed and the tenant to move in during the fourth quarter of 2024. The first dividend payment is estimated for the first quarter of 2025. From then on, a payment will occur every 3 months until the divestment event. In the fourth quarter of 2026, a divestment opportunity for the asset will be opened if market conditions are favorable. Finally, in the fourth quarter of 2028, divestment, liquidation of the company, and distribution of remaining profits to the investors are expected.

    As always, you can reach out to us with any questions about the project at contacto@urbanitae.com or by calling (+34) 911 23 25 22.