The manager of this project is GRUPO ARUA, a company whose management team has over 23 years of experience in the real estate investment sector. In recent years, it has focused its activity on the premium segment of the market, specializing in projects aimed at high net worth clients. Its deep knowledge of the sector and access to exclusive opportunities have allowed it to carry out acquisitions and developments obtaining high returns.

The La Algaba project represents the continuation of the Las Albercas project, a promotion with very similar characteristics that was developed and delivered by the manager with great success. In addition, the group owns 11 single-family plots in Finca Cortesín, of which 4 have already been developed and sold, thus consolidating its trajectory in one of the most prestigious enclaves on the Costa del Sol.

The asset is developed on a plot of 10,722 m² acquired by the project manager with its own funds. The plot will have a Building License granted in October 2025.

The project manager has committed a total capital of c. € 4.7m to date and will commit c. € 5.5m additional throughout the project. Urbanitae investors will enter the project through the granting of a mortgage loan committed in up to 5 tranches, to finance part of the construction costs and refinance part of the initial costs already incurred by the developer (c. € 800k). The Tranche A will have a fixed annual rate of 11.25% and a term of 30 months with possible extension of 6 months in month 30.

The exit of Urbanitae investors will occur through the sale of the homes. With the amount obtained from the sale of 11 of the 19 units, we estimate that the developer will have sufficient liquidity to fully repay the loan. 

The marketing of the asset will be carried out directly through the sales office of Finca Cortesín. This sales point captures all customers who access the Hotel facilities. Conversations are also being held with some of the most important agencies with the most presence in the luxury segment of the Costa del Sol.

STRUCTURE

This operation will be structured via debt, where Urbanitae Investors will grant a fixed rate loan to the company ARUA PROYECTOS INMOBILIARIOS, S.L.

The total amount of the gross loan will amount to an amount of 20,500,000 €, of which Urbanitae investors will contribute up to a maximum of 5,000,000 € per year. The total loan will be structured in five tranches, whose main characteristics are the following (you can consult more information in the document "Fundamental Data of the Investment"):

• Total loan amount: up to a maximum of 20,500,000 €, committed by Urbanitae and co-investors in five tranches:

 I. A first tranche or Tranche A, for an amount of up to 2,475,000 €, raised by Urbanitae investors. 

II. A second tranche or Tranche B, for an amount of up to 2,915,000 €, of which 2,525,000 € will be raised through Urbanitae investors and the remaining 390,000 € will be contributed by "co-investors" who join the existing debt taking part in Tranche B.

III. A third tranche or Tranche C, for an amount of up to 2,165,000 €, raised by "co-investors" who join the existing debt taking part in Tranche C.

IV. A fourth tranche or Tranche D, for an amount of up to € 5,015,000, of which 5,000,000 € will be raised through Urbanitae investors and the remaining 15,000 € will be contributed by "co-investors" who join the existing debt taking part in Tranche D

V. A fifth tranche or Tranche E, for an amount of up to € 7,930,000, raised by "co-investors" who join the existing debt taking part in Tranche E.

• Simple annual fixed interest rate of 11.25% for Tranche A.

• Loan term: 30 months + 6 months extension for Tranche A.

• Interest and principal of the loan will be paid at maturity (interest will begin to accrue from the moment of formalization of the loan contract).

• The part of the loan intended to finance construction works will be disposed of by the developer through work certifications on a monthly basis, subject to the favorable report issued by the Project Monitor.

Total early repayment will be allowed at any time, subject to a minimum return of interest for Tranche A equivalent to 21 months of interest. 

Regarding the loan guarantees, the following is established in the financing contract: 

• First rank mortgage real guarantee on the property subject to the financing, with Mortgage Responsibility of 140%. 

• Private contract of first rank pledge on the bank accounts of the Borrower SPV destined to the project to finance.

• Cash sweep for 100% of the sale amount both total and partial of the underlying guarantee.

As in all debt projects, the figure of the Project Monitor is incorporated into this project, who will review the work certifications, progress in construction, possible deviations in time / cost and who will in turn approve the monthly loan disbursements.

WHY INVEST?

There are several reasons to invest in this project:

• First rank mortgage guarantee on the underlying asset, located in the prestigious enclosure of Finca Cortesín, Casares, Málaga and with access to the Hotel facilities. 

• The return of 11.25% per annum, with a minimum return equivalent to 21 months of interest (19.7%).

• Manager's experience promoting in the area, with a close relationship with the Hotel and access to internal sales points. He has developed a very similar promotion that has been delivered with great success. 

• Building license obtained prior to the signing of the loan and earth movements initiated, so no delays in the start of the works are expected. 

MARKET

A market study has been carried out to determine if the sale prices proposed by the manager are reasonable. In turn, a commercial Due Diligence has been carried out by an external agent who has issued a favorable report corroborating the proposed prices. 

There is information available on the market within the "Sales Witnesses" documentation, where you will find a list of homes for sale in the area.

WHEN WILL I RECOVER THE INVESTED MONEY?

The estimated term of this project is 30 months with a possible extension of 6 months in month 30.

• October 2025, granting of the first Tranche of the loan by Urbanitae investors to the promoter to refinance part of the initial costs incurred and partially finance the construction.

• Last quarter 2027, completion of construction works.

• First quarter 2028, delivery of the homes and repayment of the loan to Urbanitae.

RISKS

All investments carry a risk. Below are the main risks identified for this project:

• Commercial risk derived from a possible delay in the sale of assets, which could cause delays in the repayment of the debt. This risk is mitigated by the promoter's experience marketing in the area and access to internal sales points of the Hotel, as well as the backing of the favorable report issued during the commercial due diligence, which validates the sale price set in the Business Plan.

• Risk of deviations in the project deadlines due to possible unforeseen events during the construction phase. To mitigate this risk, the promoter has the support of a Project Manager in charge of the rigorous supervision and control of the execution schedule ensuring the fulfillment of the established milestones. Likewise, it is an experienced manager in similar real estate products on the Costa del Sol.

• Risk of deviations in construction costs derived from unforeseen contingencies. This risk has been contemplated in the Loan Contract by incorporating a condition precedent to the lifting of the successive Tranches of contribution of own funds to cover any possible cost overrun in the work.

• Possibility of change of the agreed conditions. This risk includes potential substantial changes that take place from the start of the financing campaign until the formalization of the loan contract, in which case the project would be canceled and the investment returned.

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Warnings and Risks

Urbanitae Real Estate Platform S.L. (Urbanitae) does not hold the status of an investment services company, nor a credit institution and is not attached to any investment guarantee fund or deposit guarantee fund. The information published by Urbanitae Real Estate Platform on its Website is for informational purposes only and in no case can it be considered as an investment recommendation to potential investors.

The crowdfunding projects published by Urbanitae on its Website are not subject to authorization or supervision by the National Securities Market Commission or the Bank of Spain, therefore, all the information provided by the manager in relation to the projects has not been reviewed by them.

Urbanitae expressly informs that, in case of non-compliance with the total volume of the project's investment, the deadline for fundraising may be exceeded by up to 25%, maintaining the same investment conditions. Likewise, the project may be financed by Urbanitae when at least 90 percent of the financing objective has been reached, once the participation in the project that the platform itself may have is discounted. 

Investing in the projects published on this Website may entail certain risks, such as, the risk of total or partial loss of the invested capital, of not obtaining the expected monetary return or of lack of liquidity. Therefore, we warn investors to only invest an amount they are willing to lose and we suggest they diversify their investments to minimize and mitigate potential risks. In the event that the manager is unable to return or remunerate the funds received, Urbanitae will not return the investors their investment made.

This project will be open to any investor registered in Urbanitae, and any of the following registered persons may invest in it:

• Urbanitae partners who own at least 20% of the share capital or voting rights;

• Managers or employees of Urbanitae;

• Individuals or legal entities linked to these partners, managers or employees by control.

In this regard, Urbanitae guarantees that the investments of any of these people will be made through the platform, under the same terms and conditions as any other investor, without receiving any preferential treatment, or privileged access to information compared to the rest of the investors registered in Urbanitae. In accordance with the Internal Code of Conduct of Urbanitae, these investors are obliged to internally communicate these operations.

Once the investment in the project is closed, Urbanitae will provide information in the project investment area about the amount invested by these investors, the type of investor who has made the investment, and the percentage it represents with respect to the total financed, always complying with the data protection policy.