PROJECT DESCRIPTION

The manager of this project is NAVIGARE PROPERTIES, a real estate development company with origins in the nautical sector. The company is led by CEO Erik Lööv. Navigare's business model focuses on profiting from the construction of developed properties, as well as managing them as rental properties for a period of 15 years. 

The company has already developed a project of 27 units in Switzerland and has acquired two plots adjacent to the asset under study in Mijas, one of which is almost entirely sold and the other is the plot on which the El Maro project is being developed. 

The land was acquired by the project manager in 2023 with own funds and is burdened with a mortgage charge from an alternative lender, who granted a loan in January 2024. Part of the Urbanitae Loan will go to refinance this charge, as well as to finance the construction costs of the initial works. 

The urbanization is finished and the project has already been presented to the Mijas City Council, with permission to start adaptation and segregation works of the plots that will include earth movement, land adaptation and retaining walls.

At the time of the acquisition of the plots by future buyers or investors, the basic project will be 95% complete, and there will be a short period of time to modify the development before presenting it to the city council to request a new construction license. These modifications are limited in scope, as the project has already been shared with the Mijas city council and the license is expected to be obtained within a maximum of 3 months after the presentation of the basic project.

The loan repayment event will occur through the income generated by the sale of part of the resulting plots through a cash sweep, with 7 sales of the 13 projected plots for individual villas being necessary. 

The marketing for the sale of the future plots will begin next month, after the signing of the loan and the start of the adaptation works. 

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 18 months with a possible extension of 6 months in month 18. 

The exit of Urbanitae investors is expected to occur through the sale of the plots, with the sale of 7 of the 19 plots being necessary for the repayment of the principal of the Urbanitae loan plus interest.

STRUCTURE

This operation will be structured via debt, where Urbanitae Investors will grant a fixed rate loan to the company NAVIGARE PROPERTIES HOLDING, S.L.

The total amount of the gross loan amounts to 3,995,000€, fully financed by Urbanitae investors. The total loan will be structured in a single tranche, 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 3,995,000€

• Simple annual fixed interest rate of 12.0%

• Loan term: 18 months with an option to extend for 6 months in month 18

• Minimum period of guaranteed interest: 9 months

• The principal and interest 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 54.7% gross s/interest; (ii) LTV of 35.6% on the estimated value of the sale of the plots.

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

• First rank real mortgage guarantee on the registered property on which the project is developed through a Guarantee Agent. 

• Private contract of first rank pledge on the shares of the Mortgage SPV

• Private Contract of first rank pledge on the project's bank accounts.

• Corporate guarantee on the parent company NAVIGARE PROPERTIES HOLDING, S.L., owner of the SPV.

• Sales mandate on the asset with a 25% discount on the current appraisal value.

• Pledge of the credit rights of the project contracts.

• Cash sweep of the income from the sale, partial or total, of the underlying guarantee.

WHY INVEST?

There are several reasons to invest in this project:

•    High-quality asset located in one of the most sought-after areas of the Costa del Sol with great commercial acceptance of the project developed on the adjacent plot. 

•    Promotion with a solid and attractive profit margin and, therefore, exit visibility, with a minimal risk of obtaining a license. 

• Attractive LTC (54.7%) and LTV (35.6%) metrics with a cash sweep mechanism as a guarantee from the sale of the plots.

• The return that the investor will get will be 12.0% per year.

• The project has a first rank mortgage guarantee on the registered property where the project is developed. 

MARKET

A market study has been carried out to determine if the selling 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 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 18 months with a possible extension of 6 months in month 18.

• November 2025, signing of the loan contract by Urbanitae investors.

• Fourth quarter 2025, start of initial works, land adaptation and drafting of basic projects.

• Fourth quarter 2026, segregation of the plots and obtaining the Building License.

• First quarter 2027, sale of the resulting plots and repayment of the loan to Urbanitae investors.

RISKS

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

• Risk of deviations in license deadlines and initial work that causes delay in the purchase of the plots. This risk is mitigated by the promoter's experience in similar promotions and because the project has already been presented to the Mijas City Council and has permission to start the preliminary work for the adaptation of the plots. 

• Commercial risk due to delay in the sale of the resulting plots, causing 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. 

• Possibility of changing 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 cancelled 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 can in no case 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 investment of the project, 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 received funds, 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, 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 Urbanitae's Internal Code of Conduct, these investors are obliged to internally communicate these operations.

Once the investment in the project is closed, Urbanitae will provide in the project's investment area information 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.