• Debt Project in Porto, Portugal
• Amount Tranche A: 1,000,000 € // Term: 12 months
• 10.0% Simple annual interest | 10.0% Total return
• Second lien mortgage on the project asset (no provision of the formalized senior debt will be made, except for the repayment of the Urbanitae loan)
• The bank financing that will give way to our loan is already formalized

We present a new project that consists of the granting of a loan to partially finance the construction costs and general costs of a project of 27 tourist apartments and 1 commercial premises in the municipality of Porto, Portugal. The project is currently under construction and so far has been funded with the developer's own funds and through pre-sales made. The project already has a first lien loan contracted, which can be used once 50% of pre-sales (14 units) is reached. The expected repayment event of the Urbanitae loan will occur through the entry of the already formalized bank loan once the level of pre-sales required by the Bank is reached.

The asset is a 3,197 m2 tourist project on Rua da Torrinha in the municipality of Porto, Portugal, currently under construction. 

Urbanitae investors will enter the project through the granting of a mortgage loan (second mortgage) committed in two Tranches. This first Tranche has a fixed annual rate of 10.0% and a term of 12 months with a possible extension of 6 months in month 12.

Although there is a first lien mortgage contracted on the asset, to date no disbursement has been made in relation to said loan. Bank financing will only be activated once certain project conditions are met and to repay the Urbanitae loan, so it will never coexist with the Urbanitae loan. In this sense, the second lien mortgage granted in favor of Urbanitae investors offers an additional level of security, as the bank loan and the Urbanitae loan will not be simultaneously in force on the asset.

The Torrinha Gardens project is located in a central and consolidated area of Porto, one of the main cities of Portugal and an important economic, cultural and university center of the country. It has a privileged location within the municipality, in a consolidated residential area and very close to the city center. The project is just a few minutes from Baixa de Porto, as well as emblematic areas such as Cedofeita and Jardim da Cordoaria, and also has excellent access and proximity to shops, services, universities and public transport, which enhances its attractiveness both for regular residence and for investment.