{"id":34627,"date":"2024-01-08T08:30:00","date_gmt":"2024-01-08T07:30:00","guid":{"rendered":"https:\/\/blog.urbanitae.com\/?p=34627"},"modified":"2024-09-04T11:38:00","modified_gmt":"2024-09-04T09:38:00","slug":"real-estate-crowdfunding-successfully-reaches-small-towns","status":"publish","type":"post","link":"https:\/\/blog.urbanitae.com\/en\/2024\/01\/08\/real-estate-crowdfunding-successfully-reaches-small-towns\/","title":{"rendered":"Real estate crowdfunding success in small towns"},"content":{"rendered":"\n

We kick off our series of success stories in 2024 with the Moraleja de Enmedio project<\/a> (Madrid). This new residential asset is located in the center of this municipality, home to over 5,000 inhabitants, situated in the southwest of the Madrid Community. Moraleja de Enmedio has access to the capital through the A-5 and R-5 roads, and it offers numerous bus lines with direct connections to M\u00f3stoles, Legan\u00e9s, Fuenlabrada, or the Pr\u00edncipe P\u00edo station in the capital.<\/p>\n\n\n\n

In this case, the developer is Ilex Building Management<\/a>, a company with over 30 years of experience in the real estate development sector within the Madrid Community.<\/p>\n\n\n\n

The operation was launched in December 2021 and involved the development of four single-family homes, each with four bedrooms<\/strong>, with a built area of \u200b\u200b134 m2 distributed on a single floor on a 450 m2 plot. The average cost per house ranged from 418,000 to 430,000 euros. This development was Phase II of another residential project by Ilex Building Management in the same municipality, which had seen notable commercial success.<\/p>\n\n\n\n

Improved IRR and anticipation of the expected term<\/h2>\n\n\n\n

The project was structured through a fixed-rate loan for the acquisition of part of the land and the construction of the four homes. The \u20ac1,000,000 ticket<\/strong> was covered by a total of 900 investors<\/strong>. Anticipating high demand and to accommodate as many interested parties as possible, the funding process was managed through the prefunding system<\/a>.<\/p>\n\n\n\n

The initial estimated profitability<\/strong> was 15% over 18 months with a 10% IRR. Ultimately, although the total return for investors was finalized at 10.22%<\/strong>, the execution period was advanced by six months, improving the IRR from 10% to 10.13%<\/strong>.<\/p>\n\n\n\n

Key success factors<\/h2>\n\n\n\n

Here are some of the factors that contributed to the success of this operation:<\/p>\n\n\n\n