How to invest in large real estate projects from 500 euros

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

Urbanitae has officially launched. It will allow private investors to participate in residential, commercial and industrial assets.

Large real estate operations are forbidden ground for the vast majority of private investors, who do not have the economic capacity to participate in the largest millionaire projects that are launched in Spain. Only a few crowdfunding platforms such as Urbanitae, Housers and Civislend allow ordinary citizens to invest in assets normally reserved for professionals in the sector.

The last meeting point between the small investor and the real estate developers to participate in projects through collaborative investment is Urbanitae, which has already received the authorizations from the National Securities Market Commission (CNMV) and the Bank of Spain and that It will start operating in the near future.

In its first phase, it will begin taking shares in real estate projects from 500 euros. The objective is to make the platform as accessible as possible in its first stage for individuals to try. Then, the forecast of the company is to increase this minimum 'ticker' to 5,000 euros.

The fintech, which promoted and participated by experts from the financial sector, uses a 100% online investment system and will "allow investment in large residential, commercial and industrial real estate projects", explains the CEO of Urbanitae, Diego Bestard, who has developed his professional career in firms such as Primerica, Abante Asesores and Zurich Seguros.

"We are open to all kinds of possibilities, we are seeing commercial premises in profitability occupied by companies of the Mercadona and Carrefour profile, or service stations, and we also study the segment of logistics warehouses for their subsequent rental," he says. For now, the platform will start with two new developments in Madrid in which both institutional investors and individuals can invest.

Strategies

Urbanitae will have three types of strategies to get the most out of your investment bets in the real estate sector. The first is the rent, which prioritizes the rental of the property, with investment periods between 3 and 5 years, profitability objectives for rents between 4% and 7% and a profit forecast with the subsequent sale between the 10% and 15%.

The capital gains strategy focuses on the potential for short-term appreciation of the asset with expected returns of between 13% and 18%. Lastly, the debt strategy consists of investing in loans to the developer. In this case, the period is between 6 and 18 months.

Urbanitae, which closed a one-million-euro financing round a year ago with the support of the venture capital fund KFund, has already recruited several funds and institutional investors to support the project since its launch.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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