The project consists of the development of three independent buildings that, together, make up 39 tourist apartments —studio type and one-bedroom— with a total approximate built area of 2,400 m². 

The assets that make up the project are as follows:

(i) Conde de Trénor, Located in the historic center of Valencia, in a privileged location in front of the Serranos Towers. It is a building to be rehabilitated that will have 10 one-bedroom apartments, with a built area of 829 m² and an estimated progress of work of 25%.

(ii) Joan Mercader, located in the El Cabañal neighborhood, consists of a new building between party walls that will house 8 studio and one-bedroom apartments. The built area amounts to 469 m², including common areas and pool, and presents an approximate progress of 20%.

(iii) Buenos Aires, located in the Ruzafa neighborhood in El Ensanche, corresponds to a new building between party walls intended for 21 studio and one-bedroom apartments. It has a built area of 1,103 m², including common areas and pool, and an estimated progress of 6%.

The project manager acquired the assets progressively between the years 2018 and 2023. During this period, the technical projects were drafted and the corresponding construction and change of use licenses to tertiary hotel were processed, in order to allocate them to the operation as tourist apartments.

The licenses were granted successively between 2023 and 2024, currently having the approval of the City Council as tertiary use assets.

The assets are currently in the construction phase, with different degrees of progress: approximately 6% in Buenos Aires, 20% in Joan Mercader and 25% in Conde de Trénor. In the projects of Conde de Trénor and Joan Mercader, the structure works have already been completed, while in Buenos Aires the foundation works are being initiated.

The estimated execution time of the works is 12 months for the projects of Joan Mercader and Conde de Trénor, and 20 months for the Buenos Aires building.

The equity invested in the project to date amounts to approximately 2.4 million euros, corresponding to the acquisition of the assets, as well as the general costs and the construction costs already executed.

Urbanitae investors will enter the project through the granting of a mortgage loan committed in 3 tranches, to finance the pending construction costs until the completion of the works of the three projects, the cancellation of a mortgage charge and a recapitalization of own funds to compensate the capital disbursed to date. 

The amount of the Tranche A loan will be up to € 1,660,000, with an annual fixed rate of 10.25%, a term of 24 months, and the possibility of a 6-month extension at maturity. Likewise, a minimum return of interest equivalent to 12 months is established. 

The exit of Urbanitae investors is expected to occur through the sale of the underlying assets once the construction works are completed to a possible operator or investor. Alternatively, in the event that the manager opts to capitalize the assets, the exit and repayment of the loan is contemplated through bank refinancing once the buildings are operational and generating income. 

STRUCTURE

This operation will be structured via debt, where Urbanitae Investors will grant a fixed rate loan to the company SUECA 45 2022, S.L.

The total amount of the gross loan will amount to an amount of up to € 4,870,000, to be financed in its entirety by Urbanitae investors. The total loan will be structured in three 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 € 4,870,000, committed in three tranches:

I. A first tranche or Tranche A, for an amount of up to € 1,660,000, raised by Urbanitae investors. 

II. A second tranche or Tranche B, for an amount of up to € 1,465,000, raised by Urbanitae investors. 

III. A third tranche or Tranche C, for an amount of up to € 1,745,000, raised by Urbanitae investors.

• Simple annual fixed interest rate of 10.25% for Tranche A.

• Loan term: 24 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 the formalization of the loan contract).

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

Early total amortization will be allowed at any time, subject to a minimum return of interest for Tranche A equivalent to 12 months of interest. 

Regarding the Main Loan Guarantees, the following is established in the financing contract: 

• First rank mortgage on the three assets underlying the financing 

• First rank pledge on the shares of the Borrower and of the mortgaging companies owning the assets.

• First rank control pledge, without fund intervention, on the current accounts of the Borrower and of the mortgaging companies owning the assets.

• Cash Sweep of 100% of future revenues from the sale of any of the underlying assets, until the full repayment of the Loan.

• Passive sales mandate in favor of the Lender for the coordination of the sale of the assets.

As in all debt projects, this project incorporates the figure of the Project Monitor, 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:

• Prime Locations in the center of the city of Valencia, with strong demand and tourist attraction. The acquisition price offers a very attractive entry point compared to local references, which favors value creation through rehabilitation and new construction.

• Local manager with extensive experience in the area, who has his own construction company which gives the project control in costs and planning.

• Assets with Building License granted and works in progress, between 6 and 25% degree of progress. 

• First rank mortgage guarantee on the assets underlying the financing

• Annual return of 10.25%, with a minimum return equivalent to 12 months of interest

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. 

WHEN WILL I RECOVER THE INVESTED MONEY?

The estimated term of this project is 24 months with a possible extension of 6 months in month 24.

• February 2026, granting of the loan by Urbanitae investors and continuation of construction works.

• First quarter 2027, completion of the works of Conde de Trénor and Joan Mercader

• Fourth quarter 2027, completion of the works of Buenos Aires

• First quarter 2028, sale of the assets to an operator/investor or bank refinancing and repayment of the loan to Urbanitae.

RISKS

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

• Risk of deviations in project deadlines due to possible unforeseen events during the execution of the works. To mitigate this risk, a standard loan term of 24 months has been established, which allows for the absorption of potential delays. In addition, the manager has extensive experience in the development of similar real estate projects in Valencia, which helps to reduce uncertainty in execution.

• Risk of deviations in construction costs derived from unforeseen contingencies. This risk has been considered in the Business Plan through the inclusion of a specific contingency item, intended to absorb any cost overruns without compromising the financial viability of the project.

• Possibility of changes in the agreed conditions. This risk includes potential substantial changes that may occur 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 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, 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.