Spain

Urbanitae channeled over €150M into prime and luxury projects in the past 5 years

Urbanitae channeled over €150M into prime and luxury projects in the past 5 years
FINCA CORTESÍN PROJECT, IN CASARES (MALAGA). IMAGE BY: URBANITAE.

Urbanitae has surpassed €150 million in financing for prime and luxury real estate projects. The Spanish investment platform reached this threshold after raising €2.4 million for its most recent project in this segment: the construction of a high-end villa with a sports complex in the El Herrojo development in Benahavís (Málaga), under the name Hills 14.

Urbanitae's activity in the prime sector began in December 2020 and since then it has participated in 58 projects, mainly focused on the residential sector. According to data provided by the company, one out of every three euros invested through the platform since its foundation has been allocated to this type of development.

In total, the projects financed have contributed to the development of 697 homes. Only one of them is part of the rental model, based on obtaining regular income from the rental of the asset: the purchase of commercial premises on Madrid's Golden Mile, rented to a high fashion brand. The remainder is divided between 34 debt projects and 23 capital gains projects, the latter through equity participation in the developer.

The platform has mobilised more than 60,000 investments through these projects. Seven of them, which together amount to 13.8 million euros, have already returned the capital contributed, with an average annual return of over 9% IRR, in line with the estimated profitability forecasts.

Malaga concentrates most of the prime projects financed

The province of Malaga is the main focus of Urbanitae's activity in this segment, with 26 projects developed in municipalities such as Marbella, Benahavis, Estepona and Malaga city. Overall, Andalusia accounts for 28 of the prime initiatives financed by the platform, followed by the Community of Madrid (14), the Balearic Islands (eight), Catalonia (two) and the Canary Islands (one). The remaining five are located in Portugal, where Urbanitae began operating last year as part of its international expansion.

Among the most representative projects are several developments with high capital contribution and investments already repaid. This is the case of Finca Cortesín, in Casares (Málaga), where a luxury villa was developed with an investment of 867,000 euros and a final return of 25.5%; or Pleta Arriu, in Baqueira Beret (Lleida), with six single-family homes valued at around 3.5 million euros each and a return of 14.9% on an investment of 3.28 million.

In the Madrid region, of note was the Casa de la Cascada project in Alcobendas, where EUR 3 million was used to finance the completion of a 2,800 sqm home, obtaining a return of 17%. Also in Alcobendas, the project in La Moraleja attracted five million euros to complete a single-family home of up to 2,800 sqm on a 10,000 sqm plot.

In the Balearic Islands, the Cala Vadella project in Ibiza involved an investment of 650,000 euros to develop 12 homes with swimming pool and garage. In Marbella, the Salvia development, with 97 homes and four business premises, attracted five million euros, and Villa Olivia, in La Cerquilla, mobilised 4.85 million euros for the construction of a luxury home.

Other notable projects are El Madroñal H (3.635 million) and Villa Orquídea (three million), both in Benahavís; and Lagasca, in Madrid, with financing of 2.82 million euros for the acquisition, refurbishment and sale of a home in the Salamanca district, priced at around 6.6 million euros.

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