The project manager is GAZAR INVERSIONES, a family firm that has been operating since 2018 in the acquisition, construction, management, and consulting services within the real estate sector. The founder and manager of the firm has over 30 years of experience in the sector through various development and construction companies, with successful promotions delivered in the Casares area.

The company acts as a developer-builder, which allows direct control over the execution and costs of the project in the Casares area, where the team has extensive experience having developed a promotion of 146 luxury apartments, among other projects.

GAZAR INVERSIONES focuses its activity on strategic locations on the Costa del Sol. The current project is being developed on a plot of 1,608 m² acquired with own funds. It is a finalist urban land with Building License in force.

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The project promoter commits a total capital of c. € 1.47M, of which to date has invested c. € 1.05M. Urbanitae investors will enter the project through the granting of a mortgage loan committed in 3 tranches, to finance the construction costs of the villa. Tranche A will have a fixed annual rate of 11.0% and a term of 24 months with the option of extending 12 months in month 24.

The exit of Urbanitae investors will occur through the sale of the house.

The marketing of the asset will be carried out mainly by the direct sales channels of the Finca Cortesín Hotel Golf & Spa, main commercial reference for luxury residential assets in the Finca Cortesín urbanization. The sales office closely manages the brand and provides direct access to the target international customer base.

STRUCTURE

This operation is going to be structured via debt, where Urbanitae Investors will grant a fixed-rate loan to the company GLOBAL SARDAUCAN, S.L.

The total amount of the gross loan will amount to an amount of 2,965,000 which will be fully financed 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 2,965,000 €, committed in three tranches:

I. A first tranche or Tranche A, for an amount of up to 960,000 €, raised by Urbanitae investors.

II.A second tranche or Tranche B, for an amount of up to 870,000 €, raised by Urbanitae investors.

III. A third tranche or Tranche C, for an amount of up to 1,135,000 €, raised by Urbanitae investors.

• Simple annual fixed interest rate of 11.0% for Tranche A.

• Loan term: 24 months with the option of extending 12 months in month 24.

• Interest and principal of the loan will be paid at maturity (interest will start 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 promoter through work certifications on a monthly basis, subject to the favorable report issued by the Project Monitor.

Total early repayment will be allowed at any time, subject to a minimum return of interest for Tranche A equivalent to 15 months of interest.

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

•  First rank mortgage real guarantee on the property subject to the financing, with Mortgage Responsibility of 150%.

• Private contract of first rank pledge on the shares of the Borrower SPV.

• Private Contract of first rank pledge on the bank accounts of the Borrower SPV.

• Sales mandate in favor of Urbanitae investors that will be activated in month 24 if the extension does not occur, in month 36 if the extension occurs or upon the materialization of any loan default.

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 also approve the monthly loan disbursements.

WHY INVEST?

There are several reasons to invest in this project:

• First rank mortgage guarantee on the underlying asset, located in the prestigious urbanization of Finca Cortesín, Casares, Málaga

• The annual return of 11.0%, with a minimum return equivalent to 15 months of interest (13.75%)

• The asset has all the licenses and permits in force to start the works

• Experience of the manager-builder in similar real estate products in Casares and other locations on the Costa del Sol

MARKET

A market study has been carried out to determine if the sale prices proposed by the manager are reasonable. In turn, a Technical Due Diligence and a Commercial Due Diligence have been carried out by external agents who have issued a favorable report corroborating the proposed prices.

Information is 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 24 months with a possible double extension of 6 months in month 24.

• May 2026, loan grant by Urbanitae investors to the developer and start of construction.

• Third quarter 2027, completion of construction works.

•  Second-Third quarter 2028 sale of the villa and repayment of the loan to Urbanitae.

RISKS

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

• Commercial risk derived from a possible delay in the sale of the asset, which could cause delays in the repayment of the debt. This risk is mitigated by the participation of a leading real estate agent in the sector, as well as the backing of the favorable report issued during the commercial due diligence, which validates the sale price set in the Business Plan.

• Risk of deviations in the project deadlines due to possible unforeseen events during the construction phase. To mitigate this risk, the developer has the support of a Project Manager in charge of rigorous supervision and control of the execution schedule, ensuring compliance with the established milestones. Also, it is an experienced manager in real estate products in Casares.

• Risk of deviations in construction costs derived from unforeseen contingencies. To mitigate this risk, a contingency item has been included in the Business Plan that will be financed in Tranche C of the loan to absorb possible cost overruns without compromising the financial viability of the project.

• Possibility of change of 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 canceled 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 project investment, the deadline 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:

•          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, 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 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.