Description

The promoter proposes the development of a promotion of 27 tourist apartments, and a commercial premises on the ground floor to be developed in two adjacent buildings distributed in 17 one-bedroom apartments and 10 two-bedroom apartments. The project is going to be operated by LovelyStay, the leading company in Portugal in property management for short, medium and long term rentals, specialized in maximizing the profitability of assets. With a total built area of 3,197m², each apartment has an average area of 85 m2, where each unit has a balcony and/or garden. The sale price €/m² has been contrasted with a market study carried out by Savills and the estimated sale price set by the promoter is congruent with the conclusions of the study. The asset is very well located in the center of Porto, close to the historic center of the city, which offers a strong appeal for tourist accommodation thanks to its pedestrian accessibility, its access to services and transport, and an authentic urban atmosphere that balances local life with proximity to the main attractions.

The Project has a building license and the construction started in October 2025.

The project manager has a senior loan contracted for construction, which will be arranged once certain precedent conditions are met, among them the sale of at least 50% of the units.

In addition, the project already has a building license, and the construction began in October 2025. To date, the development has been financed through the promoter's own capital, with revenues from the pre-sales of the units, as well as with the provisions of Tranche A of the Urbanitae loan.

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. 

The return of the Urbanitae investment is expected through the amortization of the bridge loan charged to the already contracted bank loan, which will be arranged once 50% of pre-sales are reached.

STRUCTURE

This operation is going to be structured via debt, where Urbanitae Investors will grant a fixed rate loan to the company ROUNDNOISES - UNIPESSOAL LDA.

The total amount of the gross loan amounts to 2,000,000 €, fully financed by Urbanitae investors. The total loan will be structured in two tranches, whose main characteristics are as follows (you can consult more information in the document "Fundamental Data of the Investment"):

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

I. A first tranche or Tranche A, for an amount of up to 1,000,000 €, raised in April 2026 by Urbanitae investors. 

II. A second tranche or Tranche B, for an amount of 1,000,000 €, to be raised by Urbanitae investors.  

• Simple annual fixed interest rate of 10.0% for Tranche B.

• Term of 10 months + 6 months extension for Tranche B.

• Minimum interest period: 4 months.

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

• Resulting leverage ratios: (i) LTC equivalent to 16.6% without including as own funds the non-monetary contribution of the land; (ii) LTV equivalent to 16.3% on the appraisal of the underlying asset in finished building hypothesis.

Total early repayment will be allowed at any time, subject to a minimum guaranteed return for the Loan equivalent to 4 months of interest. An extension of 6 additional months is allowed at month 10.

Regarding the main guarantees of repayment of said loan, they are as follows: 

• Second rank mortgage on the asset, with a mortgage liability equivalent to 130% of the principal amount of the loan. The mortgage must be registered with the authorization of the senior lender, as well as with his commitment not to make any disposition until the exit of the Urbanitae loan.

• No disposition of the senior debt contracted with BPI will be made, except for the amortization of the Urbanitae loan. 

• Irrevocable power of sale of the asset up to 25% below the appraisal value.

WHY INVEST?

There are several reasons to invest in this project:

• The collateral asset of the loan is a plot of land located in Porto, Portugal, which already has work in progress and so far has been funded with the developer's own funds, through pre-sales made and with the provisions of Tranche A.

• Developer's experience developing similar projects in Porto. 

• Porto is the second largest city in Portugal and one of the main economic, cultural and tourist centers of the country, playing a key role within the northern region and its metropolitan area. 

• The return that the investor will obtain will be 8.33% (10.0% annual) with a minimum period of guaranteed interest of 4 months

• The project has a second lien mortgage guarantee on the underlying asset.

• The bank financing is already contracted, so the bridge loan repayment mechanism is clearly defined once the required level of pre-sales is reached.

MARKET

A market study has been carried out to determine if the selling prices proposed by the manager are reasonable.

There is information available about the market within the "Market Report" documentation, where you will find a market study by Savills.

WHEN WILL I RECOVER THE INVESTED MONEY?

The estimated term of this project is 10 months with a possible extension of 6 months in month 10.

• April 2026, granting of the first tranche of the loan by Urbanitae investors, and continuation of construction work. 

• June 2026, granting of the second tranche of the loan and continuation of construction work.

• Q1 2027, Once the pre-sales target of 50% is reached, Banco BPI will be allowed to enter with the bank loan for the financing of the project, as well as the repayment of Urbanitae investors.

RISKS

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

• Commercial risk in the sale of the homes, causing a delay in the repayment of the loan, as the marketing is still in an initial phase which limits visibility on the market absorption for this product. To mitigate this risk, a market analysis has been carried out based on comparables that corroborates that the prices contemplated in the business plan are aligned with the market in the Porto area.

• Risk of deviations in construction times and costs, given that dependence on an external contractor for the execution of the work could result in cost overruns and delays with respect to the project's planned schedule. This risk is partially mitigated since (i) the work is currently in progress and has a construction contract under the modality of a fixed global price, (ii) we have carried out a Technical Due Diligence with an independent expert who validates the prices and deadlines set out in the business plan, and (iii) the entry of the bank and repayment of Urbanitae investors mainly depends on the level of pre-sales reached and is not directly linked to the degree of progress of the work.

• 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 cancelled and the investment returned.

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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 in no case can it 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 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 the project's investment, the deadline 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 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 received funds, 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;

• 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, 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 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.

• The principal of the loan does not entail withholding. The following considerations apply exclusively to the generated returns.

• The withholding applicable at source, in accordance with Portuguese regulations, is 28% for individuals and 25% for legal entities, on the interest paid by the borrowing entity resident in Portugal.

• Notwithstanding the above, reduced rates or exemption may apply in accordance with Portuguese domestic law and/or international double taxation treaties. For this, it will be necessary for the investor to accredit their tax residence with the corresponding certificate.

• In the particular case of investors who are tax residents in Spain, this percentage is reduced to 15% in accordance with the Double Taxation Treaty between Spain and Portugal, provided the following conditions are met:

- The effective beneficiary of the interest is a tax resident in Spain;

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

In any case, the investor residing in Spain may deduct in his declaration, the withholding suffered in Portugal with a limit of 15%, in accordance with article 80 of the Personal Income Tax Law (individuals) and articles 31 and 32 of the Corporate Tax Law (legal entities).