New Generation Housing: residential development successfully financed through Ratio
Apr 7, 2025
At Ratio, we are transforming real estate development through the digitalization of each and every phase, eliminating intermediaries and efficiently connecting developers and investors.
New Generation Housing was one of the first examples of how our platform allows the structuring of innovative financing models, with greater accessibility, liquidity, and profitability for all parties involved in the operation.
The project's developer, Joum, is an innovative company formed by a group of entrepreneurs with extensive experience in the real estate and digital sectors. The company has delivered over 45,000m2 and is currently promoting more than 65,000m2 in the Spanish and Argentine markets.
In this case, the opportunity involved purchasing a disused building with 28 units within the @22 district of Barcelona, with the aim of recovering and refurbishing it based on current market needs, thereby helping to expand supply.
The problem: limitations of the traditional model
To tackle the acquisition of the asset and execute the entire operation, valued at a total of 3 million euros, Joum's first option was to follow the traditional financing model in these types of scenarios: the developer's own capital accompanied by a bank loan; ultimately exiting the project through its sale to an institutional fund.
A very standardized scheme in the sector, but it presented several disadvantages:
High financial costs due to high reliance on bank debt.
Long execution times (more than 6 months), which slows down the return on investment.
Lack of flexibility in capital diversification and exit strategy.
The solution: two complementary financing pathways
Ratio proposed an alternative financing model to Joum, managed through its technological platform, which involves attracting third-party capital through two complementary investment avenues: joint participation and pre-sale unit purchase.
Joint participation
Individual investors can co-invest in a series of units that are renovated and leased out for a determined period of time.
In this case, a total of 20 investors jointly participated in a selection of units from the building, which in just 3 months were refurbished and equipped by Joum based on the demand from digital nomads.
After the renovation, the units were leased with a 2-year time horizon, generating an annual return of 8% for the investor. All under a 'turnkey' model, where an operator handles all marketing, management, and maintenance of each home.
Once this profitability period concludes, these renovated units will be marketed with the aim of maximizing the sale price and generating a capital gain of +15% over the invested capital.
Pre-sale purchase
Individual investors have the opportunity to pre-purchase a unit on their own, prior to the purchase of the building and horizontal division by the developer.
In this way, 16 investors pre-purchased the remaining units of the building at a below-market price, with the option to keep the property in its current state or adopt the same renovation and lease scheme used in the joint investment model, with the same yield and capital gain conditions.
The result: maximum profitability in less time
The structure proposed by Ratio allowed the New Generation Housing project to come to fruition in record time, enhancing the efficiency of the invested capital and maximizing its returns for all involved parties.
Benefits for the developer
Full fiscal and financial optimization by eliminating bank and other intermediary dependencies, saving 15% of the project's initial budget and reducing the operation's timing from 6 to 3 months.
Access to a global and diversified network of over 150 investors, sourced and managed directly by Ratio.
A process from contract signing, operational facilities, investment, communication, and dashboard for real-time monitoring of project progress.
Developing this project through Ratio allowed us to structure an efficient exit, without relying on agents or institutional funds. The use of the platform enabled faster financing of the operation while adding value to different types of investors. Additionally, their CRM tool allowed us to maintain continuous and personalized communication with each investor and they can access project updates in real-time. – Franco Sakkal, CEO & Co-founder of Joum
Benefits for investors
Access to a unique investment opportunity in off-market assets, rarely available to individual investors, with guaranteed returns and timelines, within a safe and transparent environment.
Possibility to choose between 2 investment modalities based on needs and objectives, with full advice from the Ratio team.
100% digital investment process through the platform – including the selection of modality, contract signing, and transfer of funds, as well as subsequent monitoring of project progress and invested capital performance.
This is my first real estate investment under the pre-sale model. It is profitable, with low risk and a clear return period, between 12 and 18 months. The investment process was very simple, completely online, with continuous tracking through the Ratio platform. – Carlos Marini, investor in New Generation Housing.
At Ratio, we are transforming real estate development through digitization…
