The manager of this operation is CONFIA CAPITAL, an investment manager of Grupo Arcos 21, a holding company with over 10 years of experience in the real estate sector and more than 100 employees. The Group has developed more than 270 projects worth over 100 million euros in sectors such as residential, hotel, shopping centers, logistics and industrial warehouses or health centers, among others. Its activity ranges from urban management to turnkey promotion, focusing on areas with high demand and potential for revaluation.  

B&B Hotels is an international hotel chain specialized in budget and mid-range accommodations that operates under a “light assets” model. In Spain and Portugal it operates around 80 hotels, with a total of 7,000 rooms and a turnover above 125 million euros. Its strategy focuses on strategic locations that offer essential but high-quality services, digitalization and sustainability.

The project materializes in the development of a 3-star hotel with 133 rooms in Cruz del Campo, Seville. The asset will have a surface area above ground of 4,077 m2 in addition to the underground where the parking lot will be located, which will have 41 spaces. The hotel will have common areas such as a bar/restaurant, lounge area, 24-hour reception and terrace. The contract signed with B&B is a fixed lease contract with a duration of 45 years (15 + 15 + 15) where the first 15 years are mandatory. Located in the new neighborhood of Cruz del Campo, on the former site of the Cruzcampo factory, which has an area of more than 200,000 m2, being the main transformation area of the city where several housing developments, public facilities and new green areas are being developed.

The project has a capital gain strategy, which consists of the alliance with the manager for the development of the hotel and sale of the asset once finished to an institutional investor. The contributions of Urbanitae investors will be delivered to the promoter via capital increase to the vehicle company that will gather all the contributions of Urbanitae investors in the project: TERRACOTA OPPORTUNITIES 4, S.L. This company will later increase capital in the project's promoter company, PROYECTO SEVILLA HOTEL SPV, S.L.

From a commercial point of view, the sale of the asset has been estimated after the completion of the works and the opening of the hotel. In addition, the hotel will be operated for a period of 6 months after the opening, enough time to corroborate its correct operation. The manager has closed a fixed lease contract with a top-level international hotel operator. The estimated exit yield is 6.25%, which has been corroborated by an independent third party in the commercial Due Diligence carried out for the project.

STRUCTURE

The operation will be structured via a capital increase, where both the manager and Urbanitae investors and co-investors will make a capital contribution to the promoter company of the operation of €6,655,000, of which Urbanitae will participate with €3,000,000, expandable by an additional €2,000,000, in case the Promoter requests it. This promoter company plans to resort to bank financing for the development of the work, which has already obtained binding indicative terms to grant the developer mortgage loan.

The manager will be dedicated to the integral management of the promotion and will contribute 10% of the total capital of the investment.

WHY INVEST?

There are several reasons to invest in this project:

• Investment opportunity in a new hotel development project in Seville.

• A 15-year fixed lease contract (mandatory) has been signed with two extensions of 15 years each, with a top-level international hotel operator.

• The project will be promoted by CONFIA CAPITAL, investment manager of Grupo Arcos 21. The group has high experience in similar projects. Additionally, the manager contributes its own capital, which aligns the interests of all the agents participating in the investment

• Commercially, the city of Seville is experiencing a strong expansion of its tourist market as well as conventions and different events, with a great need for accommodation. Additionally, there are few projects under development of these characteristics that can compete with this project due to the difficulty of finding good opportunities in the market.

ECONOMIC SCENARIOS

According to the CNMV's criteria, in addition to the base (favorable) scenario proposed by the manager and which we contrast from Urbanitae, in Equity projects 2 additional scenarios must be published that show potential variations in the business plan.

1. FAVORABLE

The base, or favorable, scenario contemplates the revenue and expense estimates proposed by the manager, verified by Urbanitae, and contrasted by the commercial and technical due diligence report. In this project, the total revenue forecast amounts to €18,977,677, while the estimate of the total costs for the execution of the promotion corresponds to €15,834,825.

2. MODERATE

The moderate scenario contemplates a downward deviation of the estimated sale price of the asset and an increase in construction costs. In this project, a reduction in the estimated sale price of about 11% has been considered, which decreases the total revenue amount to €17,095,125 and an increase in construction costs of 10%, leaving the total costs at €15,576,111 (costs are reduced compared to the favorable scenario due to the reduction of the corporate tax).

3. UNFAVORABLE

The unfavorable scenario contemplates an increase in construction costs and a decrease in the estimated sale price, wide enough to obtain a negative result, with partial loss of the contributed capital. In this project, an increase in construction costs corresponding to more than 35% and a reduction in the estimated sale price of the asset of about 11%, which would result in a total revenue figure of €17,000,917 and total costs of €17,027,004 has been considered.

According to the supervisor's criteria, crowdfunding platforms should not communicate the estimated profitability in an Equity project. The total profitability of a project is the REVENUE FORECAST minus the COST ESTIMATE, divided by the TOTAL EQUITY. For example, in the FAVORABLE scenario, the calculation would be REVENUE FORECAST (€18,977,677,) minus EXPENSE FORECAST (€15,834,825) divided by the total Equity (€6,655,000). The result of this quotient multiplied by 100 will be the profitability percentage on the contributed capital of this scenario.

The forecasts are mere estimates, and are subject to variations that could arise from the economic, social or other situation throughout the duration of the project.

MARKET

A market study has been carried out to determine if the sale price proposed by the manager is reasonable in addition to a commercial Due Diligence carried out by a top-level entity where sale transactions in the market are analyzed, as well as the competition from other hotels in the area of influence and study of potential customer demand. 

WHEN WILL I RECOVER THE INVESTED MONEY?

The estimated term of this project is 26-30 months.

• Fourth quarter 2025 – capital increase and purchase of the land.

• First quarter 2026 – Second quarter 2026 - start of the execution of the work.

• Fourth quarter 2027 – end of the execution of the work, entry of the tenant and opening of the hotel.

• First quarter 2028 – Sale of the asset, liquidation of the company and distribution of profits to investors.

It is important to bear in mind that in all real estate development, the deadlines can vary both upwards and downwards. 

RISKS

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

• Increase in the projected timelines for the project, due to construction delays.

• Increase in the projected timelines for the project, due to delays in the granting of the building permit.

• Deviation of the fixed costs associated with the investment, unforeseen in construction. 

• Delay in the sale, and/or need to lower its price to attract final buyers.

• Risk of the bank refusing to subrogate the developer loan into a mortgage to some buyers, due to a situation of insolvency.

• 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 capital increase, in which case the project would be cancelled and the capital contributed by the investors would be returned.

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Warnings and Risks

Urbanitae Real Estate Platform (Urbanitae) does not hold the status of an investment services company, nor of 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 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 promoter 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. All this according to the provisions of Article 69 of Law 5/2015 on Business Financing Promotion.

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 promoter 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;

• Directors or employees of Urbanitae;

• Individuals or legal entities linked to these partners, directors 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, nor 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 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.