The manager of this project is GRUPO FRANGLA, a boutique developer with extensive experience, specializing in high-end residential projects with prices below 2 million euros.

The manager covers the entire development and has the group's construction company (Boceto) for the execution of the work. 

The construction period, obtaining the first occupancy licenses and final settlement is estimated at a maximum period of 16 months. The loan contemplates a financial term of 20 months with a possible extension of 6 additional months (20+6).

The manager has already disbursed a total capital of c. 625k € for the purchase of the plot. The remaining capital for the development of the project will be covered by additional own funds from the partners (c. 312k € of Equity Add-on to be contributed against certifications), the sales deposits committed by the customers and the loan provided by Urbanitae investors.

The Tranche A of the loan (1,310,000 €) will be used to refinance the principal plus the interest of an existing mortgage loan, while Tranche B (up to 990,000 €) will be used to directly finance the outstanding construction costs of the work.

The manager will assume, through his Equity Add-on and the flows from the sales deposits, the ordinary work contingencies and the general costs of the project. Likewise, he will formally guarantee, through an Equity Commitment Letter, the contribution of the total amount necessary to complete the project together with the financing of Urbanitae in the face of potential withdrawals by buyers.

The provisions of the work tranche will be made progressively against monthly work certifications validated by an independent Project Monitor and external technical monitoring.

The operation reflects a solid financial structure, with a gross LTC of 67.7% as of the date of formalization of the loan and a LTV of 49.7% on the estimated sales value (4,630,000 €). This implies that the expected project revenues offer a comfortable cash coverage ratio for the repayment of the principal and interest on the Urbanitae loan.

STRUCTURE 

This operation is structured via debt, where Urbanitae investors will grant a fixed rate loan to the company KUVICA ASSET MANAGEMENT, S.L.

Total loan amount: up to a maximum of 2,300,000 €, committed in two tranches:

I. A first tranche or Tranche A, for an amount of up to 1,310,000 €, raised by Urbanitae investors. 

II. A second tranche or Tranche B, for an amount of up to 990,000 €, raised by Urbanitae investors.

• Simple annual fixed interest rate of 10.5% for Tranche A.

• Loan term: 20 months with option to extend 6 months in month 20.

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

• The part of the loan intended to finance construction works will be disposed of by the developer through monthly work certifications, 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 equivalent to 15 months of interest. 

Regarding the main Guarantees of the loan, the following is established in the financing contract: 

•      First rank mortgage on the registered properties corresponding to the 3 homes with a mortgage liability of 140% on the principal of the loan. 

•     First rank pledge on the social shares of the project's promoting company. In the event that the Project Manager formalizes 100% of the sales of the development prior to the signing of the Loan, a pledge promise will be established on the social shares. 

•       First rank pledge on the current accounts (without fund intervention) of the Project in the borrowing SPV and on the Project's VAT account. 

•      Equity Commitment Letter to guarantee the additional capital commitment of €311,515 and the total amount up to €968,592 in the hypothetical case that the buyers withdraw. 

•      100% Cash-sweep mechanism of the sale amount to be received at the signing of the Deed, aimed at the priority repayment of the principal and interest of the loan until its full repayment.

WHY INVEST?

There are several reasons to invest in this project:

• Premium Location and Non-existence of Offer: Plot located in one of the most consolidated and demanded residential areas of northwest Madrid, characterized by a high-quality residential environment and a wide range of services.  

 • Commercial Risk Practically Mitigated: Solid commercial visibility, with 66% of pre-sales already secured (2 of the 3 units), backed by formalized reservation contracts and deposits already received. The third unit is in an advanced stage of commercialization.

• First Rank Mortgage Guarantee: Return at a double-digit interest rate in both tranches fully backed by a first rank mortgage on the asset with a liability of 140%. 

• Conservative Financial Structure and Ratios: It presents a comfortable LTV ratio of 49.7% on the estimated sale value (GDV of €4.63M) and a total gross LTC ratio of 71.1%. 

MARKET

A detailed market study has been carried out to determine whether the sale prices proposed by the manager are reasonable, backed by a commercial Due Diligence by an external agent who has issued a favorable report. The area suffers from a structural shortage of new construction, representing only 15-18% of the total offer compared to the clear predominance of old second-hand housing from the 90s. There is an unsatisfied demand looking for modern, energy-efficient product with private garden/pool, which ensures constant absorption rates.

There is information available on 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 20 months for Tranche A and 14 months for Tranche B, contemplating an extension option of an additional 6 months (20+6). 

• May 2026: Grant and activation of Tranche A (Refinancing Loan) by Urbanitae investors to the developer for the refinancing of the existing bridge loan and the start of the Capex work certification phase. 

• November 2026: Grant and activation of Tranche B (Capex Loan) by Urbanitae investors, allowing the entry of construction financing to continue with the construction works in parallel with the promoter's equity add-on and customer deposits. 

• Second-Third quarter 2027, completion of construction works and obtaining of first occupancy licenses (estimated at a maximum of 16 months from the grant). 

• Last quarter 2027, formalization of the public purchase deeds, delivery of keys and consequent total repayment of the principal and interest to Urbanitae investors. 

RISKS

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

• Commercial Risk (Absorption of the last unit): The market for exclusive homes may be slower than usual due to the limited interested public. This risk is mitigated by having two formalized reservations before funding and a ticket below the 2M€ barrier, which facilitates the absorption of the remaining housing. In addition, the loan has a generous total term and financial extensions to absorb any administrative or commercial delay. 

• Risk of Deviations in Deadlines and Construction Costs: Mitigated by the execution of the works through an "Open Books" contract closed with the Boceto construction company, the vertical integration of the promoter group itself and continuous external monitoring. Likewise, a contingency fund is budgeted within the business plan to absorb cost deviations. 

• 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 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 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. 

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;

• 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 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 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.