Spanish Urbanitae wants to raise 20 million euros to invest in real estate in 2024. There are new projects in Lisbon.
What is considered to be the largest real estate crowdfunding operation ever in Portugal has already closed. Urbanitae has brought together a total of 1,283 investors who are going to finance the transformation of an old factory in Porto into a resort of 96 tourist apartments with 5 million euros. In addition to this, this Spanish real estate crowdfunding platform has other real estate projects in Lisbon. One of them is to build a residential building in Oeiras.
It was in December 2023 that Urbanitae landed in Portugal. And it’s already making headlines. That’s because it managed to close what is, to date, the largest real estate crowdfunding operation in the country. Specifically, it has attracted 1,283 small and medium-sized investors who are going to finance the process of converting an old factory in Porto into a tourist resort with 5 million euros. “This is currently the maximum amount established by law for collaborative investmentmodels,” they explain in a statement sent to the press.
This real estate project that will be born in Porto, through crowdfunding, is called Barão Forrester and will consist of the following:
- Acquisition of the old factory locatedat 730 Rua Barão Forrester, in Porto;
- Refurbishment of the 3,253-square-meter property to make way for 96 aparthotel apartments;
- Lease of the new tourist resort to Numa Group, a German operator of tourist apartments for short and medium-term stays, which will be part of this project through a 25-year fixed lease, of which 15 years are mandatory;
- Sale of the tourist resort in Porto to a real estate investor (or other), once the asset has stabilized.
But what is the role of small investors in this real estate project? “Urbanitae’s investors enter the vehicle company of the operation representing 85% of the necessary capital (with amounts starting at 500 euros), while the remaining 15% is invested by the real estate developer [Caler Real Estate Advisory] and its investors,” the document explains.
So, through a capital increase, the small investors and the developer are joining forces to take over the factory, transform it into a tourist resort, and manage and sell it. “In this way, the project combines income from capital gains and rental income,” they conclude.
Oeiras will have 6 houses financed with crowdfunding
In addition to the Barão Forrester development in Porto, Urbanitae has other real estate projects in the pipeline in Portugal that will be financed via crowdfunding. The Spanish company’s goal is to reach 20 million euros financed in the first year of activity in Portugal.
Another project that marks its debut on the Portuguese market is “Paulo Duque”, which consists of the development of a building with six apartments in Cruz Quebrada, Oeiras. In this case, the platform has already gathered 277 investors, who are participating in the operation with around 1 million euros.
Financing is also in the pipeline for another real estate project in Lisbon, namely for number 6 on Rua Alexandre Herculano, a development comprising 11 apartments and a commercial space, with an investment of around 4 million euros.
“We continue to study new investment opportunities across the country, with a special focus on large-scale assets. Our goal is to reach a volume of 20 million euros in financed projects by the end of 2024,” commented Simão Cruz, Country Director of Urbanitae Portugal, quoted in the document.
