New operation by Urbas in the segment of Build to Rent (BtR). The listed company has sold to the company Q-Living Zorrotzaurre 143 officially protected homes for rent in Bilbao for 24 million euros. The development is located on Isla Zorrozaurre, known as the ‘new Manhattan’ of the Basque city.
In total, the agreement contemplates the sale of the homes distributed in two towers of 9 and 10 floors, plus 185 parking spaces, 143 storage rooms, bicycle parking, green and landscaped areas and 3 commercial premises. The total income for Urbas from the project amounts to more than 30.5 million euros after adding a subsidy from the Basque Government of 6.5 million to promote affordable rental housing, the application for which has already been formalized by the listed company.
Urbas has highlighted that the price agreed for the operation described will be paid by the buyer through an initial payment, which will amount to 20%, that is, 4.8 million euros of the total, and which will be paid at the time of the award of the regional subsidy by the Deputy Ministry of Housing of the Basque Government. Likewise, the sum of 2.4 million euros, corresponding to 10% of the agreed price, will be paid throughout the development of the promotion, with a percentage equivalent to the progress of the work certifications.
The remaining 70%, that is, the amount of 16.8 million euros, will be paid upon completion of the real estate development, coinciding with the signing of the public deed of sale, within a maximum period of 36 months from the initial payment. .
The construction will be financed through a mortgage-backed loan.which is currently being negotiated by Urbas with the Official Credit Institute (ICO), with the possibility of subrogation for the buyer upon completion of the construction of the development.
Sale to English fund M&G
This operation has been closed three months after the company sold another development of 314 homes to the English fund M&G for almost 98 million euros, also on Zorrozaurre Island.
The president and CEO of Urbas, Juan Antonio Acedo, has highlighted that the rental business continues to have an “ascending” projection, and has explained that the search for higher returns and new opportunities is driving the investment sector. beyond the main residential markets such as Madrid and Barcelonathis being the case of Bilbao, which is “very well positioned due to its economic dynamism, competitiveness and consolidation of its real estate market.”