The project manager is SETHA GROUP, an investment and real estate promotion firm that has been operating for over a decade in the identification, acquisition and development of brownfield land in the UK and Italy, specializing in obtaining urban licenses for residential and mixed-use projects. The founder and manager of the firm, Manuel Alsoni, has a long career in the real estate sector, having led more than 20 projects with an aggregate GDV of over £1,000M and more than 1,000 units delivered between London, the southeast of England and the main Italian squares. 

The company acts as a developer and investor, which allows direct control over the execution, design and costs of the project in the Versilia area, where the team has active local experience, with a luxury villa renovation project currently under development at Via dell'Acqua 166, Forte dei Marmi, in collaboration with Urbanitae. 

SETHA GROUP focuses its activity on strategic locations on the Mediterranean coast and the main Italian urban centers. The current project is being developed on a hotel asset on the beachfront in Marina di Pietrasanta, with a contribution of own funds already executed of €2.0M at closing. It is a property with SCIA in force for the works of strip-out and with the volume expansion permit expected for September 2026.

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The developer commits a total capital of c. €3.01M, of which c. €2.04M are already disbursed as of the closing date of the financing. The project also has a senior loan from Solution Bank of €7.5M, of which €5.0M have already been granted and €2.5M, as a capex line, are in the final approval phase. 

A junior loan of €8.0M is structured: €3M contributed by Urbanitae investors and €5M contributed by external investors. Urbanitae investors enter the project through a first tranche of €3M. This tranche will have an annual interest rate of 13.0% simple, with a term of 24 months and an option to extend for an additional 12 months, as well as a minimum interest period of 9 months.

The exit of Urbanitae investors will occur through the refinancing of the loan in 2028, supported by the sale of the two villas and the stabilization of the hotel under the lease contract with EGA Hospitality.

The marketing of the villas will be carried out by Setha Group's direct channels, supported by local brokers specialized in the ultra-prime segment of Forte dei Marmi and Marina di Pietrasanta, with 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 mezzanine loan to the vehicle company (SPV) Dogui 2 S.r.l., borrower of the operation.

The total amount of the gross junior loan will rise to an amount of €8,000,000, of which €3,000,000 will be fully financed by Urbanitae investors and €5,000,000 by external investors.

The main characteristics of the Urbanitae loan are as follows (you can find more information in the document "Fundamental Data of the Investment"):

• Loan amount: up to a maximum of €3,000,000, raised by Urbanitae investors.

• Simple annual fixed interest rate of 13.0%.

• Loan term: 24 months with the option to extend for 12 months in the 24th month

• Interest and principal of the loan will be paid at maturity (interest will begin to accrue from the moment the loan contract is formalized).

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

Full early repayment will be allowed at any time, subject to a minimum return of interest equivalent to 9 months of interest. 

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

• First rank pledge guarantee on 100% of the shares of the Borrower SPV (Dogui 2 S.r.l.)

• First rank pledge guarantee on the bank accounts of the Borrower SPV.

• Subordination of partner loans granted to the Borrower SPV.

• Commitment to contribute additional equity by the developer in case of construction overruns.

As in all debt projects, this project includes 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:

• Solid guarantee package, with first rank pledge on the Borrower SPV and developer's commitment in case of overruns.

• Return of 13.0% simple annual, with a minimum return of 9 months of interest.

• Exclusive asset on the beachfront, in one of the most coveted locations in the Mediterranean: Marina di Pietrasanta, at the gates of Forte dei Marmi.

• Developer with solid track record: Setha Group, +20 projects and GDV over 1,000 M£

MARKET

A market study has been carried out to determine whether the selling prices and operational parameters proposed by the manager are reasonable. In turn, a Technical, Legal and Commercial Due Diligence has been carried out by external agents who have issued a favorable report corroborating the selling prices of the villas and the operational parameters of the hotel, aligned with the comparables of Versilia. 

There is information available on the market within the "Sales Witnesses" documentation, where you will find a list of houses for sale in the area.

WHEN WILL I RECOVER THE INVESTED MONEY?

The estimated term of this project is 24 months with an option to extend for an additional 12 months in month 24.

• Second quarter 2026: loan granted by Urbanitae investors to the promoter for the acquisition and renovation costs of the project.

• Third quarter 2026: start of construction works after obtaining the volumetric expansion permit (PdC).

• Second quarter 2028: sale of the two villas and first partial repayment of the loan.

• 2028: hotel opening and refinancing of the mezzanine loan, with full repayment to Urbanitae investors.

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 selling price established in the Business Plan.

• Administrative risk linked to obtaining the permit for volumetric expansion of the hotel (PdC), expected for September 2026. This risk is mitigated by the fact that the core part of the asset can be undertaken directly under the SCIA already in force, and by the active dialogue of the promoter with the City Council, which already knows the project.

• Risk of deviations in the project timelines due to possible unforeseen events during the construction phase. To mitigate this risk, the promoter has the support of a Project Manager in charge of the supervision and rigorous control of the execution schedule ensuring the fulfillment of the established milestones. Also, it is a manager experienced 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 the C Tranche 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 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 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;

• 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, or privileged access to information compared to the rest of the investors registered in Urbanitae. In accordance with the Internal Conduct Regulation of Urbanitae, 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.

In general, the withholding to be applied at source, according to Italian regulations, is 26% on the interests that will be paid by the borrowing entity resident in Italy.

As an exception to the above, reduced rates may be applicable according to Italian domestic law and/or conventions to avoid double international taxation. For this, it will be necessary for the investor to accredit their tax residence through the corresponding certificate. 

Specifically, in the particular case of investors who are tax residents in Spain, the certificate must be issued in accordance with the Convention to avoid Double International Taxation between Spain and Italy (article 11), the withholding is limited to 12% provided that:

• The beneficial owner of the interests is a tax resident in Spain, and

• This residence is accredited by a certificate issued by the Spanish Tax Agency (model 01 or valid digital certificate) for the purposes of the aforementioned convention, covering the period in which the interest has been due.