South Balcony Project | Madrid

• Bridge loan for the purchase of land and development under a cooperative scheme of a VPPL promotion in Madrid.

• Loan Amount: €5,000,000 // Term: 12 months

• 11.50% annual // 11.50% total return 

• Loan Guarantee: First rank mortgage on the asset.

• The manager has delivered more than 50 promotions (~1,800 units) under a cooperative scheme in Madrid and southwest Madrid

• 2nd promotion of the manager (Urbanismo y Gestión) in Navalcarnero after the success of their 1st promotion of 102 homes, 100% sold, to be delivered in the next 2 months.

• Urbanismo y Gestión contributes c. €2.85m for the purchase, 35% of the purchase price

• After surveying 258 people registered on the list of interested parties for VPPL in the area, 32% are interested in buying a home with the price and features of South Balcony.

• The Commercial Study carried out by an external agent confirms the need for housing in the A-5 axis, as a result of demographic growth and scarcity of supply.

• The banking entity that finances the VAT policy and the project's guarantee account, will refinance the Urbanitae loan once the project has (i) a building license and (ii) 70% of cooperativists (100 units)

We present a new project that consists of the granting of a bridge loan for the partial financing of the purchase of land in Navalcarnero, Madrid, for the development under a cooperative scheme of a residential promotion of 144 Limited Price Public Protection Housing (VPPL).

The complete loan from Urbanitae investors will finance part of the land acquisition. 

The building license is applied for before the end of the year and the manager expects its approval 5 – 6 months later, based on their experience with the Navalcarnero city council.

The South Balcony promotion will have 144 VPPL type homes with 3 bedrooms, 2 bathrooms, large terraces and extensive common areas with swimming pool, patio and private garden.

The South Balcony project is located in Navalcarnero, Madrid, less than 30 kilometers from the center of Madrid, it is well connected to the capital 25 minutes by car via the A-5 or R-5 or by direct bus connections. 

Navalcarnero is a city in full real estate expansion positioning itself as a more affordable and quiet alternative near Madrid. The population of Navalcarnero has experienced a growth of 13% since 2018, from 28,300 inhabitants to almost 32,000 today. Likewise, Navalcarnero has an unemployment rate of 8.65%, almost 3 points below the last Spanish unemployment rate published by the INE of 11.27%

San Isidro Avenue, within Navalcarnero is located in the area of greatest expansion of the municipality, fully integrated into nature and less than 5 minutes from schools, residences, sports centers, restaurants and shops.