{"id":56840,"date":"2025-02-21T13:06:10","date_gmt":"2025-02-21T12:06:10","guid":{"rendered":"https:\/\/blog.urbanitae.com\/?p=56840"},"modified":"2025-03-25T12:55:06","modified_gmt":"2025-03-25T11:55:06","slug":"new-project-invest-in-residential-property-in-the-heart-of-madrid","status":"publish","type":"post","link":"https:\/\/blog.urbanitae.com\/en\/2025\/02\/21\/new-project-invest-in-residential-property-in-the-heart-of-madrid\/","title":{"rendered":"Invest in Residential Property in the Heart of Madrid"},"content":{"rendered":"\n

We are excited to announce our third project of the week!<\/strong> This time, we are heading to Madrid, one of the cities with the highest housing demand,<\/strong> to develop a residential project with up to 38 units<\/strong> in collaboration with Grupo Abauco. If you’re looking to invest in housing in the center of Madrid, top up your wallet because this opportunity will open on Thursday, February 27, at 4:00 PM (UTC+1).<\/strong> Here are all the details.<\/p>\n\n\n\n

The Embajadores 199<\/a> project<\/strong> takes its name from its location: 199 Embajadores Street in Madrid.<\/strong> There, we will partner with the developer to build a new residential complex with up to 38 apartments<\/strong> with one, two, and three bedrooms, situated in the Arganzuela district.<\/strong> All units will include a parking space and a storage room.<\/strong> The development will also feature a communal swimming pool, landscaped common areas, a meeting room, a gym, and concierge services.<\/strong><\/p>\n\n\n\n

The project involves acquiring a building with street frontage and an adjacent warehouse located in the inner courtyard.<\/strong> The building will be renovated<\/strong> and will have five floors plus an attic level,<\/strong> while the warehouse will be restructured to create ground-floor residential units.<\/strong><\/p>\n\n\n\n

The location is excellent:<\/strong> close to all essential services, just five minutes from Enrique Tierno Galv\u00e1n Park,<\/strong> 10 minutes from the Arganzuela-Planetario metro station, and five minutes from Atocha Station.<\/strong><\/p>\n\n\n\n

We are once again partnering with Grupo Abauco,<\/strong> with whom we have already financed six projects on our platform.<\/strong> Grupo Abauco is a real estate development company founded in 2019, but its management team boasts over 15 years of experience<\/strong> in the sector, having been involved in national and international projects totaling over 500 million euros in investments.<\/strong><\/p>\n\n\n\n

Capital Gains Strategy<\/h2>\n\n\n\n

This project<\/a> follows a capital gains strategy,<\/strong> which involves partnering with the developer to carry out the housing development. The total investment for this project amounts to \u20ac4,410,000.<\/strong> The contributions from Urbanitae investors will be used for acquiring the asset and covering initial project costs until the developer loan is granted.<\/strong><\/p>\n\n\n\n

As a reference, in the L\u00f3pez de Hoyos project,<\/strong> financed by Grupo Abauco together with Urbanitae in October 2024, the developer loan has just been secured with a top-tier financial institution.<\/strong><\/p>\n\n\n\n

The developer has already signed a purchase agreement for the asset,<\/strong> which is free of encumbrances. The building permit application will be submitted in Q2 2025<\/strong> and is expected to be approved in Q4 2025 or Q1 2026.<\/strong><\/p>\n\n\n\n

Sales have not yet begun,<\/strong> meaning there are currently no reservations for the units. The sales process will be led by the developer,<\/strong> and the target buyers will primarily be domestic buyers looking for a primary residence.<\/strong><\/p>\n\n\n\n

Preferred Return of 15% IRR<\/h2>\n\n\n\n

Regarding the investment structure, a distribution scheme<\/strong> has been negotiated to include a preferred return for Urbanitae investors, ensuring a net IRR (after corporate tax) of at least 15% per year.<\/strong> This structure safeguards investor returns against potential cost overruns or timeline deviations.<\/strong><\/p>\n\n\n\n

Watch this video for a full breakdown of the project:<\/p>\n\n\n\n

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