Urbanek Real Estate: “An extremely attractive starting position”

Urbanek Real Estate is issuing a bond these days. The paper has a maximum volume of 50 million euros. It carries an annual interest rate of 10.0 percent and runs for seven years.

In an interview with our editorial team, Christoph Urbanek, founder and CEO of Urbanek Real Estate, explains the background to the bond. He talks about the opportunities on the Viennese real estate market and about his network, which provides access to many exclusive properties. Urbanek expects demand for rental apartments in the Austrian capital to continue to rise. He wants to profit from this. He is focusing on high-quality existing properties and wants to establish a strong market position in the Viennese market.

The lawyer, who specializes in real estate transactions and financing as well as investment law, makes it clear that both national and international investors are attracted to this market as they see corresponding opportunities - combined with attractive returns.

4investors.de: Urbanek Real Estate is hardly known on the capital market. Who are you and what do you do?

Urbanek: Urbanek Real Estate GmbH is a real estate company based in Vienna. Our team consists of experienced experts who have over 20 years of professional experience in the real estate sector and have successfully accompanied projects with a total volume of several billion euros during this time.

Thanks to the extensive network we have built up over the years, we have access to exclusive real estate offers in Vienna that are often not publicly available on the market. Our in-depth knowledge of the market and our long-standing relationships enable us to identify promising properties and create attractive investment opportunities.

4investors.de: You want to issue a bond in these difficult times for real estate companies. Why?

Urbanek: The Viennese residential real estate market is currently in an exciting phase. Demand for rental apartments has risen significantly in the last 18 months. At the same time, construction companies and real estate companies are under massive pressure due to rising construction costs and higher interest rates.

In recent months, however, interest rates have slowly fallen again, which is gradually improving financing conditions. The real estate market in Vienna has also shown remarkable resilience even in difficult economic times, such as during geopolitical crises.

We expect demand to continue to grow as Vienna remains a stable market with moderate real estate prices compared to other major European cities. Thanks to the network we have built up over 20 years, we can acquire high-quality properties at attractive conditions and, if necessary, upgrade them in accordance with current regulations. This enables us to generate immediate cash flows through rental agreements and at the same time realize long-term increases in value.

4investors.de: The bond runs for seven years. That is unusual. Why did you decide on this term?

Urbanek: The choice of a seven-year term for our bond is based on a strategic consideration that enables us to finance projects over the long term and at the same time offer stable planning for our investors. This term gives us sufficient time to realize our real estate projects, increase the value of our properties and carry out any necessary renovations and modernizations.

In addition, seven years is a reasonable balance between the long-term planning of real estate development and the flexibility required to adapt to possible market developments.

4investors.de: Why do you want to get involved in the Austrian capital in particular, where do you see opportunities there?

Urbanek: We made a conscious decision to become involved in the Austrian capital because Vienna is a dynamic and growing market. The city's population is constantly increasing and Vienna acts as an important economic driver in Austria as well as an extremely attractive economic and cultural center.

Another advantage of the Viennese real estate market is the strict rent regulations, which ensure exceptional stability - especially in comparison to other European cities. This stability makes Vienna particularly interesting for investors.

Our research shows that average rents for high-quality properties in Vienna are currently between 13 and 16 euros per square meter. It is precisely these properties that we are focusing on. Our aim is to further develop these properties and bring them to the market as attractive offers in order to efficiently meet the growing demand.

4investors.de: Are the properties kept and rented out after acquisition or sold again with an increase in value?

Urbanek: Whether the properties are kept and rented out after acquisition or sold with an increase in value depends on the property in question.

For short-term cash flow generation, we concentrate on properties that are rented out or can be rented out immediately and thus generate immediate income. However, if a property offers potential for a significant increase in value, we carry out targeted renovations following a careful assessment in order to bring it into line with current sustainability and regulatory standards. We place particular emphasis on energy efficiency and plan, for example, the installation of solar panels to supply the property with its own electricity.

For long-term income, we also consider selling properties as soon as we have achieved a significant increase in value through our measures and have received an attractive offer from a buyer. In this way, we create sustainable value for our portfolio and our investors in both the short and long term.

4investors.de: What should your portfolio look like at the end of 2025?

Urbanek: By the end of 2025, we plan to continue our existing strategy by continuing to acquire high-quality portfolio properties. We will use the funds from the bond to implement this strategy in a targeted and aggressive manner in order to acquire properties that promise a high increase in value in the future.

Our goal is to further establish ourselves in the Viennese real estate market and build a strong market position. We not only want to benefit from current opportunities, but also create long-term value for our portfolio and our investors.

4investors.de: How would you characterize the residential property market in Vienna?

Urbanek: The residential real estate market in Vienna is characterized by a particularly positive outlook. Almost 50 percent of all Austrians live in Vienna and the surrounding area. Vienna accounts for around 25 percent of Austria's gross domestic product (GDP) and is officially one of the fastest growing cities in Europe. The city offers a high standard of living and is both an economic and cultural center, attracting more and more people.

Given these factors, the real estate market in Vienna has a stable growth trend. Average rental prices for high-quality properties are currently up to 16 euros per square meter, which underlines the attractiveness of the market. This dynamic shows that Vienna remains a very stable and growth-oriented market that attracts both local and international investors.

4investors.de: What returns can be achieved on the Viennese real estate market?

Urbanek: Attractive returns can be achieved on the Viennese real estate market through a targeted and strategic approach. Our strategy is to increase the portfolio in the long term by acquiring properties, making necessary changes and improvements that meet the wishes of the tenants. Through targeted sales of these properties, we can increase the value of the entire portfolio and offer our investors one of the best returns.

Falling interest rates are currently creating an extremely favorable environment in which we can expect strong demand and ultimately achieve a high return. This market environment, combined with our expertise and targeted approach, offers a promising prospect of continued attractive returns for our investors.

4investors.de: Is the issue a first step towards an IPO?

Urbanek: The issue of the EUR 50 million bond is a first step towards analyzing the reactions and feedback from the market. As we are offering an attractive interest rate of 10 percent p.a. with monthly payments, it shows the great potential of the real estate market in Austria and the profitable prospects it offers.

We want to use this opportunity to raise capital that will allow us to continue to invest in the best properties that we can secure through our trusted network. In the long term, this could well pave the way for further capital raising or even an IPO, depending on how market conditions and the growth of our business develop.

4investors.de: You will also use your own funds to finance real estate, right?

Urbanek: Yes, my team and I at Urbanek Real Estate GmbH will also use our own funds to finance our future projects. We want to give investors the confidence that we are really committed to achieving the best possible returns. Putting in our own capital is a clear way of showing our commitment and underlining our confidence in the future value growth and success of our projects.

4investors.de: At what multiples are such properties currently being sold in Vienna?

Urbanek: The current prices for properties in Vienna are among the lowest in the last ten years, which gives us an extremely attractive starting position. Due to the low entry price, we expect a very good return in the long term and a strong multiple on the sale of the properties. These favourable valuations give us the opportunity to enter the market and benefit from the expected increase in the value of the properties as soon as market conditions stabilize and improve again. With interest rates now falling again and an expected increase in demand for residential space, we expect to achieve very pleasing economic results in the future.

4investors.de: Will you limit your involvement to Vienna?

Urbanek: We would initially like to concentrate on Vienna and, with some exceptions, on the surrounding areas that offer good connections to the capital. As demand in Vienna increases, it is to be expected that more and more people will move to neighboring cities, which will further fuel demand in these regions.

We are currently monitoring the market situation in Vienna very closely and are waiting for a possible market saturation, which will offer us a favorable entry point into the surrounding cities. These cities have great potential and could also offer attractive long-term returns as soon as the focus increasingly shifts from Vienna to the neighboring regions.