Urbanitae Launches a €5M Crowdfunding for Residential Development in Tenerife

More projects are open to private investors. Urbanitae has opened a $5.85 million (€5 million) crowdfunding for a residential project in the municipality of Puerto de la Cruz, in Santa Cruz de Tenerife.

The crowdfunding platform claims that it is the largest project ever financed through real estate crowdfunding. It is a new development of 143 two- and three-bedroom homes with a garage in the center of the municipality, next to the Hotel Botánico.

Among the services to be provided are a swimming pool, social club, and gymnasium, as well as large landscaped areas. The developer is the Artal Group, a company with more than 50 years of experience. The project, which already has a building permit and almost 50% of pre-sales, offers a capital gains strategy, which consists of a partnership with the developer to cancel the encumbrances on the site.

The contributions of the Urbanitae investors will be delivered to the developer through a capital increase of five million euros in the company Ordesa Alquiler de Inmuebles. The net gain for the Urbanitae investor is estimated to be around 30% over a period of approximately 24 months. Artal expects to start construction in the first quarter of next year. Completion and handover of the homes he estimates will be by the third quarter of 2023.

If you want to find more details about Urbanitae and its latest real estate crowdfunding project for a real estate project in Tenerife, download for free our companion app. The Born2Invest mobile app keeps its readers up to date with the latest business news in the world so they can stay on top of the market

Urbanitae has financed thirteen real estate projects worth $14.6 million (€12.5 million) during the first half of the year

Urbanitae, whose CEO is Diego Bestard, has financed thirteen real estate projects worth $14.6 million (€12.5 million) during the first half of the year, positioning itself as the largest Spanish crowdfunding company in the real estate segment.

The platform has attracted a total of 4,170 investors in this period, with an average of $3,500 (€3,000) per participation; while the volume of operations financed has grown progressively, ranging from $585,000 (€500,000) to $2.1 million (€1.8 million) for a 32-home residential project promoted by Azur Estates on the island of Menorca.

In this way, and despite the pandemic, the platform has achieved twice the production in the first half of the year alone than that carried out jointly in 2019 and 2020. “It has been a great year for Urbanitae, since we have not only given access to small and medium investors to invest in operations with great profitability potential, but we have also allowed real estate developers to have an alternative financing route, in a time of increasing restrictions on the part of the bank,” said Diego Bestard, CEO of Urbanitae.

__

(Featured image by PhotoAlbert via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in EjePrime, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.