The promoter of this opportunity is a company linked to GRUPANXON. This company is a business holding with over 20 years of experience in different areas, notably real estate development, and includes its own construction company. It is the same promoter of the operations of Madrid Sur, Torres del Mediterráneo, Puerta del Ángel, La Chopera, Palos de la Frontera, Ondarreta, among others, already financed on the platform. In addition, most of these projects have already been returned to investors, improving the return on investment in all of them.

In 2017, GRUPANXON decided to create a new business line specialized in the promotion of parking spaces, storage rooms and homes, finding a clear market niche in the center of large cities due to the scarcity of this type of solutions. In less than five years, they have promoted and built more than 2,000 units between Málaga, Sevilla and Madrid.

The project has a fixed-rate loan strategy, which consists of financing the promoter for the acquisition of two commercial premises and the development of 101 storage rooms and a house distributed in two independent actions. The promoter has two signed deposit contracts with the owners of the premises for their acquisition. In the urban planning field, the Albacete project has favorable urban viability, while the Madrid project has the Responsible Declaration processed before the corresponding ECU. All expenses associated with the project will be assumed with the promoter's own resources. The promoter's intention is to develop both assets for their subsequent marketing. The exit of the investors will occur once the storage rooms are sold.

In the case of the Oporto project (Madrid), it does not require a building permit, as it is processed through a Responsible Declaration, which allows the works to start once the purchase of the premises has been formalized. After the execution of the works, the corresponding administrative inspection will be necessary to validate the adequacy of the project. On the other hand, the Franciscanos project (Albacete) has favorable urban viability issued by the City Council, which accredits the possibility of implementing the 39 storage rooms and the house planned in the development.

The work is expected to last about 15-18 months and the project as a whole a maximum of 20 months, including the process of selling the final units.

STRUCTURE

The operation is going to be articulated through a company created by the promoter exclusively for the project: PROMOCIONES MADRID Y ALBACETE, S.L. The operation is going to be structured via debt, where Urbanitae Investors will grant a loan to the company. It is not necessary to sell all the storage unit units for the return of the loan. 

The main characteristics of the debt are as follows: (more information in the document "Fundamental Data of the Investment"):

• Amount: 550,000 €.

• Fixed-rate loan of 11% per year.

• Loan term: 20 months.

• The loan interests will be paid at maturity and investors will be rewarded with guaranteed minimum interests corresponding to 18 months (make whole).

Regarding the guarantees of return of said loan, the following is established in the debt contract:

• Promise of Mortgage in first rank on the property on which 39 storage rooms and a house will be developed, located at: 1) Basement asset at c/ Concejal Prieto Rojas 3 and 5 – 02004, Albacete.

• Promise of Mortgage in first rank on the property that the promoter will acquire for the development of a project of 62 storage rooms, located at: 1) Basement premises at c/ de María de Martínez 17 – 28025, Madrid.

• Promise of first rank pledge on the shares of the SPV.

WHY INVEST?

There are several reasons to invest in this project:

• The project is going to be promoted by a company linked to GRUPANXON, a group with which Urbanitae has collaborated on 18 occasions and having successfully returned 14 projects.

• The building license is processed as a Responsible Declaration and therefore it is not necessary to wait for a favorable report from the Administration to start the works.

• The return that the investor will get will be 11% per year.

• The project has a promise of mortgage on the properties that make up the project.

WHEN WILL I RECOVER THE INVESTED MONEY?

The term of the loan that will be granted to the developer is 20 months. 

The deadlines set by the developer for the operation are:

• Fourth quarter 2025, granting of the loan by Urbanitae to the developer and acquisition of the properties and start of the project. 

• Third quarter 2027, end of the works and repayment of the loan. 

RISKS

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

• Deviation of fixed costs associated with unforeseen events in construction, which hinder the repayment of the loan. 

• Risk of deviations in deadlines due to unforeseen events associated with construction. 

• Risk of not selling enough units in time for the repayment of the investors' debt.

• Possibility of changing the agreed conditions. This risk includes potential substantial changes that take place from the start of the funding 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 (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 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 term for raising funds 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:

•          Partners of Urbanitae who hold 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 sense, 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 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.