{"id":33067,"date":"2023-12-06T10:24:05","date_gmt":"2023-12-06T09:24:05","guid":{"rendered":"https:\/\/blog.urbanitae.com\/?p=33067"},"modified":"2024-02-11T21:41:06","modified_gmt":"2024-02-11T20:41:06","slug":"hortaleza-urbanitaes-first-success-story","status":"publish","type":"post","link":"https:\/\/blog.urbanitae.com\/en\/2023\/12\/06\/hortaleza-urbanitaes-first-success-story\/","title":{"rendered":"Hortaleza: Urbanitae’s first success story"},"content":{"rendered":"\n

Since Urbanitae began operating in June 2019 as a crowdfunding platform authorized by the CNMV, many projects have been successfully financed. However, undoubtedly, one of them holds special significance for us: Hortaleza, the first operation we launched immediately after receiving authorization. It involved the development of a new residential project in this Madrid district<\/a>.<\/p>\n\n\n\n

The project’s developer, Home First<\/strong>, is a company comprised of real estate professionals with nearly 20 years of experience, specializing in small and medium-sized developments with an exclusive product offering.<\/p>\n\n\n\n

The project entailed the construction of 7 homes and parking spaces in the Canillas neighborhood<\/strong>, northwest of the capital, with convenient access to the M-30 and M-40 highways. The work included the demolition of an existing building to make way for the new homes and garages.<\/p>\n\n\n\n

Significantly improved IRR by 17 points<\/h2>\n\n\n\n

A total of 53 investors ultimately participated in financing this first Urbanitae project openly, with a contribution of \u20ac615,000<\/strong>. The financing was based on a capital gains strategy, and investors became shareholders in proportion to their contribution to the project. The capital and interest were repaid in March 2021, 21 months later.<\/strong><\/p>\n\n\n\n

The initial estimated return was 35% over 23 months with an IRR of 18%. Ultimately, though the total return for investors was 24.9%, the timeline was shortened by two months, and the IRR was significantly improved, going from the initial 18% to the final 35%. This significant increase in the IRR was due to an early capital return (where most of the profitability was returned to investors), followed by a surplus payment at the 21-month mark.<\/p>\n\n\n\n

The success of this development was marked by various factors:<\/p>\n\n\n\n