**Click HERE to watch again the Webinar "Urbanitae up close - El Desert Project", along with Sergio Beltrán Chabrera, General Manager of Sebeco**

The manager of this project is SEBECO, who has more than 30 years of experience building and developing real estate promotions. Founded in 1996 as a construction company, today SEBECO The promoter specializes in the development of medium - large real estate promotions in the province of Castellón. Delivered projects include both protected housing and large-scale free housing projects in Castellón de la Plana, Benicasim or Oropesa del Mar among others.

Currently, SEBECO is developing 4 residential projects with a total of >200 units between Villarreal, Burriana and the El Desert project. It is also in the process of developing a development of 2,500 homes and a golf course. Its track record combines projects of different sizes and types, adding value to each operation thanks to a deep understanding of the construction phase and extensive commercial experience.

The project manager has a purchase agreement to acquire the property. The manager will apply for the building permit after completing the purchase.

Urbanitae investors will enter the project through the granting of a mortgage loan committed in a single tranche. This Tranche has a fixed annual rate of 12.0% and a term of 12 months with possible extension of 6 months in month 12. 

The exit of Urbanitae investors is expected to occur through the granting of the Developer Loan once the milestones required by the bank are reached: obtaining a license and reaching the sales threshold required by the bank. As of today, it has started conversations with the bank for future project financing.

STRUCTURE

This operation will be structured via debt, where Urbanitae Investors will grant a fixed rate loan to the company HIDRA REAL ESTATE 2,S.L.

The total amount of the gross loan amounts to 1,210,000 €, fully financed by Urbanitae investors. The total loan will be structured in a single tranche, whose main characteristics are as follows (you can consult more information in the document "Fundamental Data of the Investment"):

• Total loan amount: up to a maximum of 1,210,000 €.

• Simple annual fixed interest rate of 12.0%.

• Term of 12 months + 6 months extension.

• Minimum interest period: 6 months.

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

 • Resulting leverage ratios: (i) LTC equivalent to 65.5% until our refinancing; (ii) LTV less than 40% on the appraisal of the underlying asset.

Total early repayment will be allowed at any time, subject to a minimum guaranteed return for the Loan equivalent to 6 months of interest. An extension of 6 additional months is allowed at month 12.

Regarding the main guarantees of repayment of said loan, they are as follows: 

• First rank mortgage on the asset, with mortgage liability of 150% of the amount of the principal of the mortgage loan. The mortgage must be registered and free of any charges.

•   First rank pledge on the Borrower's shares

•   First rank control pledge without fund intervention on the project's bank accounts, including the VAT account with cash sweep of VAT refunds to amortize the Urbanitae loan

•  Joint corporate guarantee of the manager

WHY INVEST?

There are several reasons to invest in this project:

• The loan collateral asset is a plot of land located in the center of Benicasim, Castellón, with an appraisal value much higher than the loan amount from Urbanitae investors of almost 3x the loan value and a LTV of 30.8%.

• Extensive experience of the developer in developing similar projects in the province of Castellón and the municipality of Benicasim itself.

• Benicasim, shows sustained demographic growth and the highest average gross income per capita in the province. 

• The return that the investor will obtain will be 12.0% annually.

• The project has a first rank mortgage guarantee on the underlying asset and a corporate guarantee from the manager.

MARKET

A market study has been carried out to determine if the sale prices proposed by the manager are reasonable.

There is information available about 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 12 months with a possible extension of 6 months in month 12.

• October 2025, granting of the Loan by Urbanitae investors and purchase of the asset.

• Q4 2025, application for the building license.

• Q1 – Q2 2026, obtaining the building license.

• H2 2026, fulfillment of the milestones set by the bank for the granting of the developer loan and refinancing of the Urbanitae investors' loan.

RISKS

All investments carry a risk. We detail the clearest risks we have identified for this project: 

• Risk of deviations in license terms. This risk is mitigated by the developer's experience in similar promotions and in Castellón. In any case, a few additional months of contingency have been included in case there is any delay.

• Commercial risk in the sale of the homes, causing a delay in the entry of the developer loan and therefore a delay in the repayment of the loan. To mitigate this risk, a commercial analysis of the promotion has been carried out by a reputable external provider that validates the price hypotheses and expected sales rates. Likewise, the developer has a 30% reserve as of today.

• Risk of bank refinancing to complete the promotion. The developer has extensive experience in the area and relationship with banking entities. The developer's experience with banking entities has been contrasted.  

• Possibility of change of the agreed conditions. This risk includes potential substantial changes that take place from the beginning 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 (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 recommendations to 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 project 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 sense, Urbanitae guarantees that the investments of any of these people will be made through the platform, on 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's 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.