The Partner with whom Urbanitae investors will invest in this operation is Tent Peak SL. Since its establishment in 2021, it has allocated 50 million euros to real estate projects. Its goal is to grow through buildings located in the urban centers of some of the main cities in Spain. They focus on residential and office assets that complement their coworking, coliving or short and medium term rental apartment solutions. 

Their investment strategy is carried out through two approaches:

•      100% Retention Strategy Projects: these are assets that will remain in Tent Peak's portfolio without any plans for their future sale.

•      Value-added Projects: they invest in the early stages of development, actively manage and improve the project to maximize its value, and aim for an exit within approximately 24 to 36 months from then 

The delegated Manager of this operation is Kolac Capital, founded in 2016, it is a real estate investment and asset management company focused on the acquisition, divestment, operation and management of assets; including serviced apartments, hotels, residential, commercial premises and office buildings. It acts as a delegated developer for third-party investors. The company is specialized in projects located in Seville, with a deep knowledge of the local market and solid execution capabilities.

The asset will be operated under a management contract by the company SharingCo, an integrated Operator specialized in flexible housing and work solutions, which include apartments with services, coliving and coworking spaces. Founded in 2021, the company manages and develops flexible real estate assets in the main Spanish cities, focusing on privileged urban locations (Madrid, Malaga, Seville and Valencia). The platform currently manages about 225 operational units in its portfolio, with occupancy levels above 90%, and has another 194 units under development and in project

SharingCo combines asset management, operation and tenant experience in a single platform. The terms of the management contract can be found in the attached documentation as "Management Contract Summary".

The project consists of the acquisition of a tertiary asset (with permitted lodging use) in the central Nervión neighborhood for its complete reform and transformation into 44 tourist apartments. The asset has two floors (ground and first) and an area of c.2.045m2 within a residential building with completely independent entrance. The reform of the asset will be processed via responsible declaration that has already been submitted to the Seville City Council, so the start of work is imminent. Once the apartments have been developed, the Operator, SharingCo, will manage the daily operation and it is expected that, after a year of operation, the complex will be sold to a property investor.

The contributions of Urbanitae investors will be made through a capital increase in the vehicle company that will group the platform's investment in the project: EMERITA OPPORTUNITIES 8, SL. This company, in turn, will carry out a capital increase in the project's promoter company, Nervión Living SL.

STRUCTURE

The operation will be structured via a capital increase, where both Urbanitae investors and the Partner will make a capital contribution to the promoter company of the operation for a total amount of 4.650.000 €, of which Urbanitae will contribute 2.325.000 €, that is, 50% of the necessary capital. The contributions will allow the complete development of the project, that is, purchase and development of the asset, modification for its subsequent management and sale. The Sponsor and the Partner plan to resort to bank financing to cover development costs where they have already obtained indicative terms from a banking entity.

The manager will be dedicated to the integral management of the project and the promoter company and the Partner will contribute 50% of the total capital of the investment.

WHY INVEST?

There are several reasons to invest in this project:

• Strategic location in Seville: Good location, in the Nervión neighborhood, Seville - a well-established residential area with excellent communications and proximity to the main urban and transport nodes. Eg: 10 mins from Santa Justa, 20 mins from the center of Seville and the airport.

• Partner's Contribution: we have a very aligned partner in the operation since he invests 50% of the necessary capital.

• Established local promoter: we have a Manager specialized in the management of tourist apartments specifically in Seville

• Experienced operator: SharingCo has a lot of experience developing this kind of assets, with more than 225 units under management.

• Attractive profitability - risk binomial: Preferred IRR of 13%. Under this structure, we prioritize the recovery of capital and the profitability of our investors, offering an investment opportunity with a highly mitigated risk profile and an attractive return margin.

ECONOMIC SCENARIOS

According to the CNMV criterion, in addition to the base (favorable) scenario proposed by the manager and which we contrast from Urbanitae, in Equity projects 2 additional scenarios must be published that show potential variations in the business plan.

1. FAVORABLE

The base, or favorable, scenario contemplates the acquisition price of the asset, the rent signed in the management contract and the sale price estimated by the manager, verified by Urbanitae, and contrasted by the Savills valuation report. In this project the total revenue forecast amounts to € 13,092,122, while the estimate of the total costs for the execution of the project corresponds to € 10,705,426.

2. MODERATE

The moderate scenario contemplates a downward deviation of the sale price estimated by the Partner equivalent to 20%, which decreases the amount of total income to € 10,642,782 (costs are reduced compared to the favorable scenario due to the reduction of the corporate tax). Although the sale price has been severely affected investors would still complete their preferred IRR of 13%.

3. UNFAVORABLE

In the unfavorable scenario, the aim is to modify the hypotheses enough to lose capital. In this case, a downward deviation in the sale price estimated by the promoter equivalent to c. 30%, which decreases the amount of total income to € 9,564,237 and a increase in CapEx equivalent to c. 20%, which increases the total costs to € 9,972,801. Although the sale price and the cost of the work have been severely affected, the return for Urbanitae investors will still be protected by the 13% preferred IRR.

According to the supervisor's criteria, crowdfunding platforms should not communicate the estimated profitability in an Equity project. The total profitability of a project is the REVENUE FORECAST minus the COST ESTIMATE, divided by the TOTAL EQUITY. For example, in the FAVORABLE scenario, the calculation would be REVENUE FORECAST (€13,092,122) minus EXPENSE FORECAST (€10,705,426) divided by the total Equity (€4,650,000). The result of this quotient multiplied by 100 will represent the profitability percentage on the capital contributed in this scenario.

Forecasts are mere estimates, and are subject to variations that may arise from economic, social or other situations throughout the duration of the project.

MARKET

To validate the main hypotheses of the investment opportunity (acquisition price, development costs, projected operational business plan by the operator and the estimated divestment price) contemplated in the business plan, Urbanitae, in addition to having carried out its own analyses, has hired an external company (Savills and Nurbex) to prepare a market analysis that supports, among others, the divestment price, available on the website "Market Study", as well as a technical analysis of the project. 

WHEN WILL I RECOVER THE INVESTED MONEY?

The estimated term of this project is 30-34 months.

• May 2026 – closing of the operation, signing of the management contract. Period prior to the effective start of the reform. At this stage there are still no operating revenues.

• July 2026 – start of transformation works. 

• October 2027 – completion of transformation work.  

• July 2027 – start of maintenance actions and obtaining of ESG certification to be carried out on the asset and start of the assumed vacancy period. 

• November 2027 - Start of the asset's operation once the work is finished. During this stage the asset generates recurring operational cash while it remains in the portfolio.

• November 2028 – sale of the asset at the end of the operation period.

It is important to bear in mind that in any real estate investment, the deadlines can vary both upwards and downwards. 

RISKS

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

• Promoter risk: Insolvency, fraud or incompetence of the promoter. Risk mitigated by the solvency of Grupo Kolac and its extensive experience in the market.

• License risk: Refusal of the City Council to grant the license or delays. Mitigated since it is processed via responsible declaration (DR).

• Cost increase risk: Mitigated by experience in similar promotions and a budget made with margin.

• Commercial risk: Risk in deviation of sale prices mitigated by the interest of the entity, the study validated by Savills and the commercial experience of the promoter.

• Possibility of change of the agreed conditions: This risk includes potential substantial changes that take place from the start of the funding campaign until the formalization of the capital increase, in which case the project would be canceled and the capital contributed by the investors would be returned.

---------------------------------------

Warnings and Risks

Urbanitae Real Estate Platform (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 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 promoter 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 period 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. All this as established in Article 69 of Law 5/2015 on Business Financing Promotion.

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 promoter 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 sense, 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 regarding 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.