Click HERE to watch again the Webinar "Urbanitae up close - Torrinha Gardens Project", which took place on Wednesday, March 25 for the first phase of the operation

Torrinha Gardens Project | Porto, Portugal

•   Debt project in Porto, Portugal

•   Amount Tranche B: 1,000,000 € // Term: 10 months

•   10.0% Simple annual interest | 8.3% Total return 

•   Minimum interests equivalent to 4 months

•   Guarantees:

1. Second mortgage on the project asset.
2. No provision of the senior debt contracted with BPI will be made, except for the repayment of the Urbanitae loan. 
3. Pledge on the shares of the project's SPV
4. Irrevocable power of sale on the asset, up to 25% below the appraisal value

We present the second phase of the project which consists of granting a loan to partially finance the construction costs and general costs of a project of 27 tourist apartments and 1 commercial premises in the municipality of Porto, Portugal. The project is currently under construction and so far has been funded with the developer's own funds and through pre-sales made. The project already has a first mortgage loan contracted, which can be used once 50% of pre-sales (14 units) is reached. The expected repayment event of the Urbanitae loan will occur through the entry of the already contracted bank loan once the level of pre-sales required by the Bank is reached.

The asset is a tourist project of 3,197 m2 on Rua da Torrinha in the municipality of Porto, Portugal, with work currently in progress. 

Urbanitae investors will enter the project through the granting of a mortgage loan (second mortgage) committed in two Tranches. This second Tranche has a fixed annual rate of 10.0% and a term of 10 months with possible extension of 6 months in month 10.

Although there is a first mortgage contracted on the asset, to date no disbursement has been made in relation to this loan. Bank financing will only be activated once certain project conditions are met and to repay the Urbanitae loan, so in no case will it coexist with the Urbanitae loan. In this sense, the second mortgage granted in favor of Urbanitae investors offers an additional level of security, as the bank loan and the Urbanitae loan will not be in force simultaneously on the asset.

The Torrinha Gardens project is located in a central and consolidated area of Porto, one of the main cities of Portugal and an important economic, cultural and university center of the country. It has a privileged location within the municipality, in a consolidated residential area and very close to the city center. The project is just a few minutes from Baixa de Porto, as well as emblematic areas such as Cedofeita and Jardim da Cordoaria, and also has excellent access and proximity to shops, services, universities and public transport, which enhances its attractiveness both for regular residence and for investment.