The Category entered the market just before the burst and played a pivotal role in guiding European real estate investors through a turbulent period. Íñigo Basurto, the company’s director of investment and strategy, shares to EL PERIÓDICO DE ESPAÑA, part of the Prensa Ibérica group, detailing the firm’s path, present stance, and future plans.
TO ASK. What is Category?
REPLY. Category began in 2006 as a real estate asset manager just before the downturn. It shifted Spanish investors toward Central Europe, focusing on Poland and Hungary. The local market was overheated and many believed Spanish real estate offered little upside, with some predicting a crisis. When the crisis hit, the operation that had relocated investors found itself managing assets far away, without the local presence needed to protect and income from them. During those years, founder Kepa Apraiz developed an app that allowed real‑time visibility of rents, invoices, property accounts, and tax or administrative returns. In 2006–2007 this approach enabled Category to bring under management a growing portfolio of 800–1,000 properties in record time. An illustrative case was a football player who acquired ten units in a Warsaw building.
Q. Are all these assets located in Poland?
A. The focus was Central Europe, especially Hungary and Poland. These assets were fragmented, and information was shared in real time via the application. The primary aim was not big profits, but preserving investments and keeping investors comfortable. Initially Category built relationships with long-stay residents but soon converted some units into tourist flats to provide a seasonal outlet. A few years later, as returns rose, investors asked the firm to promote its own properties in a single building and the venture moved forward with a student residence in Hungary.
Q. Did the company purchase, design, and construct the land?
A. First, Category sold investors’ scattered holdings to fund a more uniform, scalable product. This boosted profitability and improved guest relations. Dormitories were planned for medium and long stays, but they soon realized summer tourists could fill vacancies with longer-stay guests. The timeline here centers on 2013–2015. Yields improved significantly and investors began asking about developments in Spain.
Q. Were the investors Spanish or from other countries?
A. The mix was varied, with Spaniards forming the core. They were often investors who had capital abroad and now sought a return of capital to Spain. The business became a sequence: a vacant flat is acquired, Category consolidates it, and a new flat is offered within a horizontal partition of the same building. The essence of the model is ownership of property with managed, steady income. A fixed monthly return of about 3.5% is complemented by a variable component capped at year end, supported by a growing focus on sustainable and integrated living. In 2017 the company expanded to Spain, purchasing land in Tenerife from BBVA to develop a complex where multiple ideas would converge. Nivaria Beach became the first project where guests could stay for short or medium terms, with a strong emphasis on sustainability and local integration.
Q. How many flats are there and have they sold out?
A. Nivaria sold quickly in 2018, with 122 apartments ranging from 130,000 to 170,000 euros. It currently offers a fixed return of 3.5% and a variable portion typically between 7% and 8% overall.
Q. What were the next steps?
A. After that model, more projects followed such as Nivaria Golf & Marina, comprising 86 apartments nearby, plus another approximately 100 flats and a project in Lanzarote known as Gigantes de Tenerife. The firm continues to expand with several developments underway.
Q. Are the last 100 units being developed now?
A. Yes, construction is imminent. Nivaria Golf & Marina is slated to finish next year. Most units have already sold and this represents a significant qualitative leap. Prices range from roughly 180,000 to 280,000 euros.
Q. What was developed on the Peninsula?
A. Katégora operates three lines: vacation properties, a shopping center in city centers, and co-living spaces. The co-living model focuses on young students and professionals, with a strategy to build and then sell to institutional investors rather than simply selling individual apartments.
Q. How many assets are under management in Europe?
A. The portfolio includes two urban apartment complexes in Budapest, a co-living space in Vitoria, and a vacation project in Tenerife. In development, there is a 140-unit co-living in Pamplona, a 350-unit co-living in Valencia, plus projects in Tenerife and an apartment project in Andorra.
Q. What is the approximate market value of the entire portfolio?
A. Between 300 and 400 million euros.
Q. What new operations are on the horizon?
We are winding down some operations in Estepona, Alicante, Sevilla, and Barcelona while pursuing new opportunities elsewhere.
Q. How does the merge model work?
C. The property consolidation model operates as a club of developers who create projects in strategic yet well‑connected urban areas near universities, transport hubs, or tech centers. The aim is to craft large communal spaces for people to meet, alongside essential services attached to the apartments and a broad array of additional amenities.
What is the typical investor profile for Q. Coliving?
R. About 90% of investors are national, often industrial or family‑controlled groups seeking productive investments with tax advantages. After 6–7 years, these investments are sold to institutional buyers and the company restructures for the next project.
Q. What is the growth plan?
R. Four new projects per year are the target. Two will be horizontal, with rapid cycles of introduction and liquidation within three years, and an investor club will manage the process when apartments are sold to other investors, including a fixed rental guarantee.
Q. Do investments operate like a hotel chain in management?
R. Category runs a subsidiary called Kora Rentals that builds housing, manages operations within the complexes, and ensures insured rents to owners. Investors receive fixed income while the company reports on activity within the apartments.
Q. Who is the model designed for?
R. It targets the middle class because buying an apartment does not require immense wealth. Financing up to 50% of the cost increases profitability, and property is often on hotel land, simplifying compliance with housing regulations. A dedicated manager remains involved to ensure the property remains well maintained.
Q. Are there residential-only complexes among the assets?
R. Residential-only projects exist but are less common.
Q. How many investors are involved?
R. Roughly 800 investors, each owning a separate flat. Once investors grasp the Category model and receive proceeds, organizers offering tickets between 500,000 and one million euros are invited to participate.
Q. What profitability is offered to promoters?
C. Returns typically range from 15% to 22%, varying by investment round. Early stages tend to offer higher returns, with 20%+ at the outset and mid-stage returns around 15–16% as projects reach liquidation. Only highly qualified investors are invited to join this increasingly professional model, ensuring a diverse, capable group of participants.
Source note: The following overview reflects investor-focused insights gathered from the company’s discussions and public statements about its European portfolio strategy and future expansions. [Citation: Category interview, internal notes].