{"id":53621,"date":"2024-12-13T14:04:53","date_gmt":"2024-12-13T13:04:53","guid":{"rendered":"https:\/\/blog.urbanitae.com\/?p=53621"},"modified":"2024-12-13T14:06:41","modified_gmt":"2024-12-13T13:06:41","slug":"new-project-invest-in-valencia-with-a-6-5-annual-return","status":"publish","type":"post","link":"https:\/\/blog.urbanitae.com\/en\/2024\/12\/13\/new-project-invest-in-valencia-with-a-6-5-annual-return\/","title":{"rendered":"New project! Invest in Valencia with a 6.5% annual return"},"content":{"rendered":"\n

As the year draws to a close, we bring you a new rental income project\u2014our sixth in 2024 and tenth overall on Urbanitae. This time, it involves the acquisition of an apartment hotel in Valencia. The project will open for investment on Wednesday, December 18, at 4:00 PM (UTC+1).<\/strong> Below, you’ll find all the details.<\/p>\n\n\n\n

Located in Valencia\u2019s Extramurs district, the P\u00e9rez Gald\u00f3s<\/a> project involves the acquisition of a 13-room apartment hotel<\/a> for operation and subsequent sale<\/strong> to a long-term real estate investor. These accommodations are already operated by Alma Suites, a nationally recognized operator focused on Valencia.<\/p>\n\n\n\n

The asset is situated in Valencia, in the Arrancapins neighborhood, specifically at 52 Avenida P\u00e9rez Gald\u00f3s. It consists of eight registered units located on the ground and first floors of a mixed-use building, with a gross leasable area (GLA) of 814 square meters. The Extramurs district, home to over 50,000 residents, offers excellent transport connections, including a train and high-speed rail (AVE) station.<\/p>\n\n\n\n

This opportunity is managed by Viviz, a company specializing in new-build development and real estate asset management. Viviz also focuses on creating platforms and vehicles for real estate investment. Their experience includes projects for developing and managing apartments for rent, such as Alma Goerlich and Alma Calatrava, both in partnership with Alma Suites.<\/p>\n\n\n\n

6.5% annual return indexed to CPI<\/h2>\n\n\n\n

The P\u00e9rez Gald\u00f3s<\/a> project follows a value-add and rental income strategy, which entails partnering with the developer to manage the acquisition, operation, and eventual sale of the asset. Contributions from Urbanitae investors will fund the entire project, including the purchase of the property. The contribution from Urbanitae investors will represent 90% of the total equity required, amounting to \u20ac2,405,000,<\/strong> while the remaining 10% will be provided by the current owner of the asset.<\/p>\n\n\n\n

Viviz has signed a fixed-term lease agreement with Alma Suites<\/strong> for 10 years, with a mandatory commitment for the first five years, followed by a mutually binding renewal for another five years (5+5). Alma Suites will sublet the apartments individually to both tourists and medium- to short-term clients, guaranteeing the agreed-upon rental payments. Additionally, the operator has provided a bank guarantee equivalent to four months\u2019 rent and a legal deposit equal to two months\u2019 rent. The lease agreement has already been signed, and rental payments will commence immediately upon acquisition of the asset.<\/strong><\/p>\n\n\n\n

The project is expected to generate an average annual dividend of 6.5%<\/strong> from the acquisition date. The rental income will be reviewed annually,<\/strong> applying the percentage increase (but never a decrease) in the Consumer Price Index (CPI). The asset will be operated for a total of three years, with an exit window starting after year two. At the end of this period, the property will be sold to a long-term real estate investor. The tenant has also expressed interest in purchasing the asset at the end of this period, subject to favorable conditions.<\/p>\n\n\n\n

The asset is currently operational and fully licensed,<\/strong> so no municipal administrative procedures are required.<\/p>\n\n\n\n

In this video, the developer and Sergio Arana, Urbanitae\u2019s Director of Real Estate, explain the project highlights.<\/p>\n\n\n\n

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