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Real Estate II Distilled by Altea | May 2026 | 4 minute read
TL;DR: a €3.3m profit-participating loan funding two Valencia coastal residential projects, paying an 8% coupon plus profit share inside Spain's regulated security-token framework.
High single-digit net return, roughly 95% modelled capital preservation, first-cycle sponsor.
Express interest now
Review the full memo
What it is
- A profit-participating loan issued as a regulated security token under Spain's LMVSI regime. You hold debt that also takes a cut of the profit.
- It funds two developments: Álvaro López 14, a 16-unit block in central Valencia and the structurally strong project at about a 68% unit margin, and Puzol Beach, a larger 22-unit beachfront building up the coast at a thin 12% margin.
- 8% per annum coupon, non-compounded, paid mostly at exit, plus a profit share of 25% standard or 35% for Altea-accredited investors.
- Realistic hold of 40 to 48 months.
Why now
- Spain is roughly 800,000 homes short and builds about 100,000 permits a year against 230,000 of demand. It is a policy-made shortfall, and it widens every year.
- Valencia province led the country with 15.5% price growth in 2025. La Malva-rosa moved from €2,150 to €3,185 per square metre in two years.
- A for-sale-to-rent ratio of 1.91 says Valencia is still a buyer's market, which is what a build-to-own deal needs.
Which Altea theses this expresses
If you have read the WC lately, this is the concrete version of several threads.
The economics
- Base case: about 9.7% XIRR direct standard tier, 10.5% direct Altea tier, 9.6% net through the Altea SPV.
- Probability-weighted across six scenarios, it lands between 7.5% and 8.2%.
- The 8% coupon does roughly three-quarters of the work. The profit share is the kicker and mostly shows up in the good scenarios.
- Modelled capital preservation is about 95%. The genuine tail is a 5% wipeout case at roughly-22%.
What could break this
- First-cycle vehicle. No delivered Bonum-branded project yet. The track record sits with the two principals individually.
- Pre-permit and pre-sale. Neither project has a permit, and the CaixaBank facility only draws at 50% pre-sales. Your capital goes in before both gates clear.
- Puzol's thin margin. At about 12%, a 10% cost overrun or price miss wipes out its profit. Álvaro carries the portfolio under stress.
- Open terms. The binding Offering Document is still in regulatory review. Subscribe now and you commit before the final waterfall and default terms are fixed.
Where it fits in a portfolio
This is income with an equity kicker, backed by real assets. You hold it for the 8% coupon and a shot at more on exit, accept a four-year lock-up, and live with a 5% chance of real loss.
- It belongs in the alternatives sleeve, in the income and real-asset-backed credit corner, next to film bridge lending and industrial outdoor storage. Different corner from Maritime I, which is venture risk, and different again from gold, which is a liquid hedge.
- Treat it as one deal among many in a diversified alts allocation, roughly 0.5% to 2% of investable assets. At that weight, the wipeout case is survivable.
- It diversifies. The return rides the Spanish housing cycle and EU rates, with little connection to US equities or the next thing out of Washington. Useful if your book leans American or leans on policy calls.
Two ways in
- Direct via Brickken, non-US residents only, €7,500 minimum. Highest net return at the Altea tier, but you handle your own Spanish withholding.
- Altea SPV, Rule 506(c), for US and other accredited investors. It costs about 90 basis points of XIRR in exchange for pooled tax handling, clean US access, and quarterly oversight from us.
How we get paid
We are not arm's length. On the direct route, we earn nothing. On the SPV, we charge 2% upfront and 10% carry above an 8% hurdle, and we took a one-off sponsorship fee for a recent Sunday Edition. The full memo shows the euro impact line by line.
The terms
- Raise: €3.3m, 440 tokens at €7,500
- Coupon: 8% per annum simple, mostly at exit
- Profit share: 25% standard, 35% Altea
- Hold: 40 to 48 months, no secondary market
- Minimum: €7,500 direct, €22,500 retail cap
- Window: opens June, closes end July 2026, issuance July
- Status: two diligence items still open
Next steps
Express interest now
Review the full memo
Or if you're ready to invest now, just hit reply.
Cheers,
Wyatt
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