Urbanflip Madrid - Premium Residential Refurbishment
Madrid, Spain$Spain
Real Estate
Tokenized Debt
Fixed Income
€10MTotal Issuance
5–10Active Projects
150+Completed Deals
8.00%
Annual Coupon (Fixed)
€10M
Total Issuance Size
7 Years
Maturity
Project Overview
Urbanflip is an institutional-grade investment opportunity designed to capture the spread between outdated housing stock and the premium buyers pay for fully refurbished homes in Madrid's most prestigious districts: Salamanca, Chamartín, Chamberí, Retiro, and Centro Norte.
The Issuer intends to issue up to €10,000,000 of Tokenized Notes, the proceeds of which are used by Compartment Urbanflip to fund a secured loan facility to Urbanflip Capital S.L., supporting a diversified portfolio of 5–10 residential refurb-and-sale projects. Each property follows Urbanflip's disciplined buy–renovate–sell strategy and is acquired vacant to ensure immediate refurbishment.
Investors benefit from a fixed 8.00% annual coupon, net of all fees, paid quarterly, while Urbanflip contributes 10–20% of subordinated equity to every deal, ensuring strong alignment of interests.
The investment thesis rests on a fundamental imbalance: over 80% of Spain's 26 million homes were built before 2000, and a significant share no longer meets modern standards of energy efficiency, layout, or design. Buyers, however, increasingly demand turnkey homes with new installations and efficient finishes. Urbanflip bridges this gap by purchasing below market price and executing targeted refurbishments, then reselling at 25%+ annualized project-level premiums.
With more than 150 successful projects completed since 2021 and a consistent record of double-digit annualized returns, Urbanflip has proven the repeatability and scalability of its model. This offering is now open for subscription by qualified investors and professional investors via the StegX or Vesta subscription flow.
150+ Projects Completed
25%+ Annualized Project Returns
Qualified & Professional Investors Only
Investment Offering
Investors subscribe for Tokenized Notes issued by StegX LU S.à r.l., acting for and on behalf of Compartment Urbanflip (Luxembourg securitisation undertaking), in registered form, with a EUR 100,000 denomination and a total issuance size of up to EUR 10,000,000.
The Notes pay an 8.00% fixed coupon per annum, paid quarterly in arrears, with an Issue Date of 1 February 2026 and a Final Maturity Date of 1 February 2033 (7 years). The Notes are distributed solely by way of private placement to professional investors within the meaning of MiFID II and to qualified investors within the meaning of the Prospectus Regulation, and are not available to persons located in the United States.
By subscribing, investors will digitally execute the subscription documentation and investor representations referenced in the Offering Memorandum, including eligibility confirmations.
Key Terms at a Glance
- Facility Size: €10,000,000
- Denomination / Minimum Ticket: €100,000
- Coupon: 8.00% fixed per annum
- Payment Frequency: Quarterly in arrears (ACT/360)
- Issue Date: 1 February 2026
- Maturity: 1 February 2033 (7-year bullet)
- Loan-to-Value: 70–80%
- Co-Investment: 10–20% subordinated equity from Urbanflip
- Eligible Investors: Professional investors (MiFID II) and qualified investors (Prospectus Regulation); non-US persons only
Asset & Portfolio Overview
Urbanflip systematically exploits value gaps in Madrid's premium districts, acquiring old, under-valued apartments, executing standardized, design-led refurbishments, and reselling into a deep pool of buyers seeking modern turnkey homes. The approach emphasizes updated layouts, energy-efficiency upgrades, and high-quality finishes to command premium pricing.
Urbanflip Madrid – Premium Districts is a revolving portfolio of residential fix-and-flip projects across Salamanca, Chamartín, Chamberí, Retiro, and Centro Norte. Portfolio construction prioritizes liquidity, execution speed, and diversification, enabling multiple short-duration value-creation cycles across Madrid's most resilient neighborhoods.
Urbanflip reviews 20–30 leads per month, of which 4–6 advance to offers and 1–3 become acquisitions, ensuring disciplined deployment without compromising acquisition standards. Current pipeline dossiers include Marques del Vasto 11 (€1.05M) in Chamberí and O'Donnell 45 (€2.80M) in Salamanca.
Investment Criteria
- Apartments >60 sqm, at least 2 bedrooms & 2 bathrooms
- Exterior-facing, natural light, elevator access
- Intermediate floors or attics preferred
- Target acquisition: €1–2.5M per unit (pipeline up to €3.5M)
Refurbishment Strategy
Every deal passes Investment Committee review. Budget, timeline, and EPC upgrades are monitored via monthly reports. Urbanflip co-invests 10–20% to secure alignment. Urbanflip's co-investment is deployed to secure deposits within 24–48 hours of sourcing prime opportunities, giving the company an edge in high-demand transactions.
Each apartment is refurbished according to a standardized playbook developed over years of execution. Average renovation budgets range from €120,000–180,000 per €1 million apartment (equivalent to €1,200–1,800 per sqm), with works lasting six to nine months on average. Renovations focus on energy-efficiency upgrades, improved distribution, and modern finishes, directly increasing both liquidity and exit pricing.
Investors participate through Tokenized Notes issued by the Luxembourg securitisation vehicle. The Notes are limited recourse obligations of the Issuer, with recourse limited to the assets of Compartment Urbanflip, which include a secured loan facility to Urbanflip and the related security package — including pledges over Spanish SPV shares and project cashflow accounts. Post-project reviews feed into continuous refinement of the process, compounding operational advantages over time.
Track Record (Selected Assets)
Completed projects demonstrate the resilience and repeatability of Urbanflip's approach across Madrid's premium districts, consistently delivering strong annualized returns:
- Alcalá 131 — 3 months · 30.2% annualized return
- San Bernardo 66 — 6 months · 30.4% annualized return
- Paseo de las Delicias 63 — 5 months · 32.7% annualized return
- Príncipe de Vergara 81 — 7 months · 33.0% annualized return
- Francisco Silvela 76 — 6 months · 35.4% annualized return
- Méjico 3 — 7 months · 42.1% annualized return
- General Margallo 26 — 5 months · 51.9% annualized return
- Naciones 14 — 2 months · 114.9% annualized return
- General Álvarez de Castro 40 — 2 months · 131.1% annualized return
Location & Market Analysis
Madrid's inner-ring districts inside the M30 combine deep liquidity, constrained supply, and high international demand. Salamanca, Chamartín, Chamberí, Retiro, and Centro Norte are characterized by classic architecture, green avenues, excellent transport, and premium amenities.
Buyer preference increasingly favors turnkey homes due to mortgage timelines, renovation complexity, and the premium placed on immediate habitability. Refurbished apartments consistently outperform outdated stock in both absorption speed and pricing power, especially where layouts, energy performance, and finishes are modernized.
Location Key Facts
- Inner-Ring Liquidity: Deep buyer pools and constrained, high-quality supply persist.
- Transport & Amenities: Metro and bus connectivity, services and schools elevate desirability significantly.
- Turnkey Preference: Buyers pay premiums for renovated, immediately habitable homes.
- Exit Visibility: Ample comparables support pricing discipline and absorption speed.
Market Dynamics
Prime Madrid prices have risen 4–5% YoY (2024–2025), outpacing the national average. Renovated units consistently sell at a 25–30% premium to outdated stock.
Average Refurbished Prices
- Salamanca: €12,000/sqm (top >€27,000/sqm)
- Chamberí: €9,500/sqm
- Chamartín: €8,000/sqm
- Retiro: €10,500/sqm
Buyer Base
80% of buyers are international (60% primarily Latin American, 20% other nationalities) and 20% are domestic. Around 70% of transactions in Madrid's prime areas are cash-financed, highlighting the liquidity and resilience of this segment.
Macro Fundamentals
Spain's GDP is projected to grow by 2.5% in 2025, with unemployment trending down to 11.5%. Mortgage rates have stabilized at around 3.5%. Foreign investment remains strong, with Madrid consistently ranking among the top three European cities for cross-border real estate capital. Government subsidies for energy-efficient renovations, linked to EU decarbonization targets, provide an additional incentive for the refurbishments Urbanflip systematically executes.
4–5% YoY Price Growth (2024–2025)
70% Cash-Financed Transactions
Top 3 European City for Cross-Border RE
Team & Sponsor
Urbanflip Capital S.L. is a Madrid-based platform specialized in buying, renovating, and selling premium residential apartments in high-income districts within the M30. The team combines investment banking, legal, technical, and construction expertise with a proven, data-driven sourcing and execution model. Since launch, Urbanflip has completed 150+ transformations and consistently delivered 20–30%+ annualized project returns.
Operations are institutional: standardized refurbishment playbooks, competitive tendering across 3–4 trusted contractors, and monthly budget-versus-actual controls. The Urbanflip Investment Committee combines legal, financial, and operational expertise — reviewing all acquisitions, approving budgets, and monitoring risks.
Management Team
- Mohamed El Madani, Founder & MD — Aerospace engineer with an MBA and Master in International Business. Former banker and consultant with over €2.6 billion in real estate assets commercialized. Leads strategy, capital formation, and execution.
- Erik Olsen, COO — Master in Real Estate Development (IE University). Experienced in acquisitions and investor relations, previously Director of Finance at Daneres SAS. Oversees operations and project execution.
- Miguel Escudero Delgado de Robles, Director of Expansion & Investor Relations — Lawyer and real estate & hospitality investment professional with experience across the full investment lifecycle: sourcing, underwriting, transaction execution, and stakeholder management. Has advised and supported closings of 500+ beds. Also serves as Hospitality Counselor at Oger and External Investment Advisor to Habyt.
- Gonzalo Roca de Togores Pascual, COO — 7+ years in real estate, starting at Savills Aguirre Newman (Valuations), supporting appraisal of large portfolios for Banco Santander, Testa, and Aedas. Later joined Casafari's Portfolio Solutions team, providing consultancy and asset sourcing to investors.
Urbanflip's governance model guarantees bi-annual reporting, project dashboards with before/after media, financial metrics, and milestone tracking. Investor updates are prepared by the Investor Relations team, reviewed by the IC, and signed off by the Founder & MD. Commercialization is handled through Urbanflip's proprietary brokerage arm Onoma Homes and a network of 1,000+ external brokers, agencies, and collaborators.
Financial Overview
Urbanflip provides de-risked access to Madrid's premium residential flip cycle via a Luxembourg-issued, tokenized debt instrument paying 8% fixed annually. Investor participation is structured through a Luxembourg securitization compartment, which provides a secured loan to Urbanflip SL. This pooled loan facility provides diversification across multiple projects over a 7-year term.
The Notes constitute direct, unsecured and limited recourse obligations of the Issuer. Recourse is limited to the assets of Compartment Urbanflip, which include the loan to Urbanflip and the benefit of the related security package. Investors should expect that any recoveries, if enforcement occurs, depend on the value and timing of realisations within the Compartment.
Use of Funds
- Acquisitions: ~€7,500,000
- Renovations: ~€1,500,000
- Fees and Costs: ~€1,000,000
Security & Covenants
Security is granted in favour of the Issuer (for Compartment Urbanflip) at the level of the loan facility to the Borrower. The security package includes the pledge of 100% of the Spanish SPV shares, assignment of receivables and related claims, and pledges over relevant Spanish operating accounts. Noteholders do not hold security directly — their recourse is limited to the assets of Compartment Urbanflip.
- Prefunded Interest Reserve: 3 months of coupons established at inception
- Maximum LTV Covenant: 80%
- Minimum Co-Investment Covenant: 10%
- Capital Recycling: Project sales recycle capital within the portfolio; proceeds do not trigger interim principal repayments unless covenanted thresholds are activated
- Repayment: Principal scheduled at final maturity, with potential early or partial redemption in specific scenarios as set out in the Terms and Conditions
Luxembourg Securitisation Vehicle
SPV Share Pledge Security
3-Month Prefunded Interest Reserve
Subscription Process
Participation in this offering is available only after completion of StegX onboarding. Investors first complete KYC/KYB and investor classification, and provide the required representations, including non-US person status. Once approved, investors select the investment amount, submit the subscription, and execute the subscription documentation digitally. Subscription funds are then transferred in accordance with the funding instructions.
Following acceptance and allocation under the offering terms, the Notes are issued in registered form, and investors receive confirmation via StegX. The Issuer has appointed BMCP GmbH as arranger in connection with the Offering. The Notes are offered to eligible investors through BMCP GmbH's tied agent, StegX GmbH. Neither BMCP GmbH nor StegX GmbH underwrite the Notes — the placement is on a best-efforts basis.
- Complete KYC/KYB and investor classification via StegX
- Provide required representations including non-US person status
- Select investment amount (minimum €100,000)
- Digitally execute subscription documentation
- Transfer subscription funds per funding instructions
- Receive Note issuance confirmation via StegX
Digital Subscription via StegX / Vesta
Min. Ticket €100,000
Best-Efforts Private Placement
This opportunity is available by enquiry only.
Due to regulatory or investment requirements, direct purchase is not enabled for this listing. Please click Enquire Now to connect with our team for more details and next steps.
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