Pre-opening | Urbanitae finances the refurbishment of a penthouse in the Las Letras district (Madrid) through a €1,100,000 loan at 11.50% with a second-rank mortgage

03/08/2026 – ⏱ 3 min

This article is for informational purposes only and does not, under any circumstances, constitute investment advice or a recommendation.

The crowdfunding platform Urbanitae is preparing to launch a real estate investment opportunity in central Madrid. The operation is structured as debt through the granting of a fixed-rate subordinated loan to the borrower RE Bravo Murillo 68 S.L., managed by re-Group. The funds will be used to refinance a deposit (arras) of €900,000 and to finance part of the pending refurbishment costs of a 290-square-metre penthouse located in the Las Letras district. The loan will be subordinated to an existing senior loan and secured by a second-rank mortgage. It is worth recalling that any reference to returns is inseparable from the corresponding risk, which is detailed further below.

The call sets a gross amount of €1,100,000, committed in a single tranche, and an interest rate of 11.50% annual simple; this return is subject to investment risk and is not guaranteed. The term has been set at 12 months, with the option of a 6-month extension in month 12 (12+6), a bullet repayment scheme — principal and interest at maturity — and a minimum return (make-whole) equivalent to 6 months of interest. Full early repayment is permitted at any time, subject to that minimum return.

Asset Description, Construction Progress and Manager Profile

The asset is a penthouse on the sixth floor of a historic 1940 building, the former Hotel Savoy, at Plaza de la Platería de Martínez, 1, at the confluence of the Las Letras and Los Jerónimos districts, opposite the Prado Museum and within the Paisaje de la Luz area, declared a World Heritage Site by UNESCO. The home has 165 square metres of usable space and a 26-square-metre terrace, totalling 290 square metres of built surface. The project involves its full refurbishment and repositioning for subsequent sale; after the refurbishment, the home will feature three en-suite bedrooms, a service bedroom, a terrace and an adjoining storage room, with finishes including radiant and cooling flooring, air conditioning and integrated home automation.

The works began in February 2026 and show progress of over 50%; according to the schedule, work will resume in September 2026 and is expected to be completed in the first quarter of 2027, at which point the sale of the home and repayment of the loan are anticipated. The manager, re-Group, is a real estate group dedicated to the repositioning of residential assets in prime areas of Madrid, with more than 10 years of activity in Spain, and this is the third refurbishment it has carried out in the same building. The exit strategy relies on the sale of the property: according to the documentation, the developer has recently signed a deposit agreement (arras) with a new buyer, whose formalisation by public deed is subject to the completion of the works.

Financial Structure, Coverage Ratios and Collateral

The structure of the operation reflects a gross LTC of 57% and an LTGDV of 56%, calculated on a sale price of €4,800,000. To date, the developer has disbursed €1.0 million in own funds, allocated to part of the purchase price and to the financial and general costs of the project, and undertakes to continue contributing own funds to cover the financial costs of the senior loan during development.

The loan's collateral includes a second-rank mortgage over the underlying asset, with a mortgage liability of 140%; a first-rank pledge over the project's bank accounts; a first-rank pledge over the shares of the borrowing company; and intervention rights over the senior loan in the event of early maturity. In compliance with European crowdfunding regulations, it is recalled that non-sophisticated investors have a pre-contractual reflection period of four calendar days during which they may withdraw their investment offer without justification or penalty. This is a crowdfunding product and not a deposit or a guaranteed savings product. Real estate investments carry risks of illiquidity and total or partial loss of principal; this project is not supervised by the CNMV or the Bank of Spain, and is not covered by the deposit guarantee scheme (Directive 2014/49/EU) or the investor compensation scheme (Directive 97/9/EC).

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