The project manager is Immobiliare Hestia, a real estate developer based in Milan specializing in the development of high-end residential projects in northern Italy. Founded in 2013, the company has a solid track record in the acquisition, rehabilitation, and promotion of residential assets in markets with strong demand and limited supply of premium products.

The founder of the group, Igor Chubarov, has over 30 years of experience in the international real estate sector, having participated in the development of more than 2 million square meters of residential space. Currently, the group maintains an active portfolio of projects in Lombardy and other strategic areas of northern Italy.

Immobiliare Hestia acts as the developer and investor of the project, maintaining direct control over the design, execution, and marketing. In Residenza Iris, the sponsor has already contributed a significant part of the equity and construction works have already begun, with all urban planning permits granted.

The developer contributes a total capital of c. €4.2M to the project, of which €2.8M has already been disbursed at closing, reflecting a strong alignment of interests. Urbanitae's financing is structured as a €5.0M senior secured loan divided into two tranches, with a first lien mortgage on the asset.

The exit of the investors will occur through the sale of the 24 homes, parking spaces, and storage rooms of the project, in a market with strong demand and scarce supply of new premium residential product.

The marketing will be led by RE/MAX, relying on a pre-sales strategy already active and aimed at both high-income local buyers and profiles linked to Milan and the international environment of Malpensa.

STRUCTURE

This operation will be structured via debt, by granting a senior secured loan to the vehicle company IRIS S.r.l., borrower of the operation.

The total financing will amount to €5,000,000 intended to finance part of the construction and development costs of Residenza Iris. €3,000,000, will be fully financed by Urbanitae investors, while €2,000,000, will be contributed by external co-investors.

The main characteristics of the financing are as follows:

• Loan amount: up to a maximum of €3,000,000.

• Simple annual fixed interest rate of 11.0%.

• Term: 24 months for Tranche A with the option to extend for 12 months.

• Principal and interest will be paid at maturity.

• Loan disbursements will be linked to the progress of the work and the achievement of pre-sales milestones.

The financing will have a first-level guarantee package, including a first lien mortgage on the asset, pledge on the SPV's bank accounts, and subordination of partner loans.

Likewise, the promoter will assume possible construction overruns through additional equity contributions. As in all Urbanitae debt operations, the project will have the supervision of an independent Project Monitor, responsible for reviewing the progress of the works, technical certifications and the correct release of funds throughout the execution of the project.

WHY INVEST?

There are several reasons to invest in this project:

• Solid guarantee package, with first lien mortgage on the asset and promoter's commitment to possible overruns.

• Return of 11.0% simple annual, with a minimum return of 12 months of interest.

• Premium residential project of new construction in a strategic location and with limited supply in northern Italy.

• Promoter with extensive international experience and solid track record in residential development in Lombardy.

MARKET

A market study has been carried out to determine whether the sales 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 sales prices.

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.

• First quarter 2026: start of construction works after obtaining all necessary permits and formalizing the turnkey construction contract.

•  Second quarter 2026: granting of the loan by Urbanitae investors to the promoter. 

• Second quarter 2028: total notarization of residential units and total repayment of the principal loan plus accumulated interest 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 the management of the final phases of processing. This risk is considered minimal, as the project already has the construction permit (PdC) obtained and the works have been authorized. The promoter maintains a fluid dialogue with the Busto Arsizio City Council, which ensures efficient management of any additional procedure or obtaining the certificate of habitability at the end of the work.

• Risk of deviations in the project deadlines 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 rigorous supervision and control of the execution schedule, ensuring compliance with established milestones. Likewise, it is an experienced manager in real estate products in Busto Arsizio.

• Risk of deviations in construction costs derived from unforeseen contingencies. To mitigate this risk, a contingency item has been included in the Business Plan.

• 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, or 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' 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 Urbanitae's Internal Code of Conduct, these investors are obliged to internally report 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.

Generally, 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 us with 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 effective beneficiary 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 said convention, covering the period in which the interest has been due.