Edificio Vilalba
A 12-room hostel, ten co-living apartments and a let commercial unit under one roof — on the Camino del Norte in the centre of Vilalba, Galicia.
A mixed-use building on the Camino del Norte
Edificio Vilalba sits in the centre of Vilalba, in the Terra Chá district of Lugo — a market town on the A-8 motorway and directly on the Camino del Norte, the northern pilgrim route to Santiago. The building combines a 12-room pensión, run as a hostel, with ten self-contained apartments above (nineteen bedrooms in total, from one to four bedrooms each) and a ground-floor commercial unit already let to a long-standing local business.
It is a working, income-producing building today — not a ground-up development. The structure is deliberately simple: acquired all-equity, with no bank debt, so investors keep 100% of the income and any gain on exit. The hostel serves pilgrims, tourists and contractors working in the area; the co-living apartments target longer-stay tenants drawn to the town's expanding industrial and agricultural base.
One building, three income streams
Hostel, co-living and commercial income sit side by side, so the building is not dependent on a single guest type or a single tenant to perform.
Commercial let
A long-let commercial unit, fully occupied and already generating rent — the steadiest income line in the building.
Co-living apartments
Ten apartments — one to four bedrooms each, nineteen bedrooms in total — let to longer-stay workforce tenants.
12-room hostel
Serving Camino pilgrims, tourists and contractors passing through Vilalba — the income line with the most room to grow.
A closer look
Two demand engines, one town
Vilalba sits on a working pilgrim route and inside one of Galicia's busiest industrial growth zones.
The Camino del Norte
Vilalba is a stop directly on the Camino del Norte. Camino traffic network-wide reached a record 530,987 pilgrims in 2025 — up 53% on 2019 — and is still rising into the 2027 Holy Year. The town's 15th-century Torre dos Andrade, now a Parador, keeps a steady flow of visitors through the centre.
A growing industrial base
The Santuario wind farm — 161 MW across 23 turbines on land spanning Vilalba, Xermade and Guitiriz — was authorised for construction in 2024. Thirty kilometres away, the As Pontes transition is projected to bring up to 7,500 construction jobs over six years within a 40 km radius that includes Vilalba.
The highest-turnover company in Lugo province is based in Vilalba.
Terra Chá and Meira place 13 companies in the province's top 100, c. €1.2bn combined.
Vilalba's employment office handled over 5,600 appointments in 2025.
Set out plainly
No jargon — just what it costs, what it is set to pay, and what it hands back over five years.
| Target return | What it means | Per €100k share | Figure |
|---|---|---|---|
| Net annual income | Cash paid to investors each year | €10,100 / yr | 10.1% |
| Average annual return | Income plus growth, over the 5-year hold | — | 15.0% |
| Total money back | Income plus sale proceeds, over 5 years | ~€194,800 | 1.95× |
How the return builds: a fully-let commercial unit, ten co-living apartments serving Vilalba's growing workforce, and a 12-room hostel on the Camino del Norte together target €323,760 a year in gross income. After running costs and management, that is €10,100 a year for every €100,000 share — and, with the building sold on at the end of year five at a 7% market cap rate, around €194,800 back per share in total. Full occupancy assumptions and historical trading data are set out in the full investment memorandum.
Held for 15 years
Same building, same income, run for three times as long.
| Milestone | What has happened by then | Cumulative income / share | Running total / share |
|---|---|---|---|
| Year 5 | Full stabilised income reached | €46,970 | €46,970 |
| Year 10 | A further five years at full income | €97,470 | €97,470 |
| Year 15 | Building sold — income plus exit | €147,970 | €292,256 |
More cash, and a different shape of return: holding for 15 years instead of 5 takes the total handed back on a €100,000 share from €194,800 to €292,256. The annualised rate settles at 11.0% over 15 years, a little below the 5-year figure of 15.0%, simply because ten extra years of steady income (no rent growth assumed) are added to a single exit gain rather than compounding it. Investors who value a longer, income-led hold see a larger total payout; investors prioritising the highest annual rate may prefer the shorter hold.
Vilalba, on the pilgrim road
Vilalba is a year-round market town in the Terra Chá, set on the A-8 motorway between the Cantabrian coast and the city of Lugo. It is known for its medieval Torre dos Andrade — now a Parador — and a steady flow of Camino del Norte pilgrims passing straight through the town centre.
Request the full investment memorandum
This page is an indicative summary. The full investment memorandum sets out the share structure, occupancy assumptions, historical trading data and complete terms.
Indicative summary only — full terms, risks and financial detail are set out in the investment memorandum, available on request following an NDA. Capital at risk. Completion is conditional on the property being delivered free of tenants, in line with the purchase agreement — investor funds are only drawn once that condition is met. Targets shown assume stabilised hostel and co-living occupancy of 80% following planned refurbishment and relaunch; they are not guaranteed and actual returns may be higher or lower. Past and projected performance are not a reliable indicator of future results.