The Promoting Partner with whom Urbanitae investors will invest in this operation is Jamison Group, a real estate firm established in 2008, backed by more than 25 years of experience in asset development and management in Europe, Latin America, Africa and the Gulf region (GCC).

Jamison Group has accumulated up to $3 billion in managed assets and has structured investment funds worth more than 150 million euros in Europe and Latin America. The firm has a solid track record in distressed asset management and NPLs, acting as Master Servicer and Asset Manager. In Spain, it operates residential and mixed-use assets in the center of Madrid, focusing on short and medium stays.

Its investment strategy in Madrid is articulated around two lines of activity

Short and medium stay projects: refurbished, furnished and fully managed central assets, aimed at mobile executives, postgraduate students and digital nomads. Jamison currently manages a portfolio of 23 apartments in two neighborhoods in the center of Madrid (Las Letras and Salamanca).

Value-added projects: acquisition, transformation and divestment of assets within 24-36 months, with repositioning strategies such as conversion to tourist use under the regulatory framework of the Reside Plan

Jamison Group contributes €1,125,000 of its own equity to this project (25% of the total), which represents a direct alignment of interests and a first loss cushion for Urbanitae investors. The promoter accesses the surpluses only after the Urbanitae investors have recovered their capital plus the preferred return of 14%.

The asset subject to the investment is a recently renovated residential building in perfect state of conservation, with an estimated residual capex of c. €470,000. The works will be coordinated by RTA Grupo within an estimated period of 6 months. No building permit is required, which eliminates the risk of delays due to urban planning procedures.

The project consists of the acquisition of a residential asset in the Lavapiés neighborhood. The asset is renovated, but needs small adjustments for its transformation into tourist apartments under the Reside Plan. The building has 6 floors (ground floor, 4 apartment floors, and a storage floor) and a commercial premises of 192m2. This adds up to a total area of 1,443 m2, with an independent entrance. The asset's reform will be processed via a responsible declaration that has been submitted to the Madrid City Council, so the start of works will be imminent and during the exploitation of the asset. Once the reform has been completed, the Reside Plan license will be processed and the exploitation period will begin. During the first twelve months the operator will be the Sponsor itself and when the Reside Plan applies, a choice will have to be made between the offers received from different operators. After one year of operation under this framework, the complex will be sold to a property investor.

The Reside Plan is the regulatory framework of the Madrid City Council that allows the conversion of residential buildings to tourist apartment use for a maximum period of 15 years, provided that the asset complies with certain technical and urban requirements. This mechanism is the central piece of the project's value-added thesis: obtaining the tourist license turns the asset into a product with active demand from institutional and property investors, with an estimated exit price of €10,800,000, compared to the current appraisal value of €8,060,000.

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: DIMORA PROPERTIES 5, S.L. This company will in turn carry out a capital increase in the project's promoting company: LARCHMONT SPAIN S.L.

STRUCTURE

The operation is structured via a capital increase, where both Urbanitae investors and the Partner will make a contribution to the promoting company for a total amount of €4,500,000, of which Urbanitae will contribute €3,375,000, i.e., 75% of the necessary capital. The remaining 25% (€1,125,000) is contributed by Jamison Group. Additionally, senior bank debt will be subscribed by subrogation of the existing mortgage.

The distribution of returns is structured as follows: first, the capital is returned to Urbanitae investors plus a preferred return of 14% per annum (net IRR); then, Jamison Group receives a catch-up equivalent to 14% on its contribution; and the remaining surpluses are distributed in a 50/50 proportion between Urbanitae and investors and Jamison respectively.

WHY INVEST?

There are several reasons to invest in this project:

• Virtually refurbished asset, without construction risk: the residual capex amounts to only c. 340,000 € and no building license is required, eliminating the risk of deadlines and budget deviations.

• Regulatory upside via Reside Plan: the conversion to tourist use for 15 years is the main catalyst for revaluation, with an estimated capital gain of 31% on the current appraisal value, expanding the universe of buyers in the divestment.

• Prime location in Lavapiés, Madrid Centro: neighborhood with strong tourist and medium-stay demand, scarce supply of properly licensed assets and excellent connectivity (Lavapiés L3 metro, Atocha, Embajadores).

• Developer aligned with skin in the game: Jamison Group contributes 1,125,000 € of its own equity (25%) and accredits a proven operational track record in downtown Madrid with 23 apartments under management.

• Attractive risk-return ratio: Preferred IRR of 14% for Urbanitae investors. Under this structure, we prioritize the recovery of capital and the profitability of our investors, offering an opportunity with a highly mitigated risk profile and an attractive return margin.

• Bank debt already formalized: the senior mortgage of 4,445,000 M€ is granted on the asset (subrogation), eliminating the risk of financing.

• Double exit route: in addition to the sale to an institutional investor, the developer plans to use the funds from the sales of other assets of his property to repurchase the participation of Urbanitae if necessary.

ECONOMIC SCENARIOS

According to the CNMV's criteria, 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 obtaining the Reside Plan license and the exploitation of the asset in the form of tourist apartments. In this project the forecast of total net income amounts to 11,247,775 €, while the estimate of total costs for the execution of the project corresponds to 9,708,064 €.

2. MODERATE

The moderate scenario contemplates a reduction of 25% on the estimated sale price, which implies a sale at a yield of 8%, which places the total income at 8,565,123 €. This decrease entails a reduction of the associated taxes, resulting in total project costs of 9,194,828 € (costs are reduced due to the reduction of the corporate tax). Although the reduction in the sale price generates losses in the project, Urbanitae investors would not lose capital and would continue to obtain a positive return thanks to the structure of the Preferred IRR.

3. UNFAVORABLE

In the unfavorable scenario, the aim is to modify the hypotheses enough to end up losing capital. In this case, we lower the selling price by 33.3%, which would mean going out at a yield of 9%. In this catastrophic scenario, revenues drop to €7,670,905, which would mean selling the asset at a price lower than the purchase price. Costs remain the same as in the moderate scenario. It is in this scenario that Urbanitae investors would start to generate losses.

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 (€11,247,775) minus EXPENSE FORECAST (€9,708,064) divided by the TOTAL EQUITY (€4,500,000). 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 Savills to prepare an ECO valuation report (December 2025) that sets the current value of the asset at €8.06 M. The acquisition price of €7.46 M represents a discount of 7.5% on this value, offering a safety margin at the entry point. The estimated exit value rises to ~€10.8 M (~€7,511/m²), with an exit yield of 6.00% on the stabilized NOI. 

WHEN WILL I RECOVER THE INVESTED MONEY?

The estimated term of this project is 22-26 months.

•       June 2026, closing of the operation, signing of the management contract and subrogation of the existing mortgage.

•       July 2026, start of transformation works. At this stage there are operating revenues derived from existing rents. Simultaneously, the works are managed and the urban planning license is processed to comply with the Reside Plan.

•       December 2026, completion of transformation works.

•       July 2027, obtaining the urban planning license.

•       June 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: 

• Plan Reside License Risk: there is a regulatory risk that can cause a delay in adhering to the Plan Reside. The ECU has confirmed that the asset is very close to meeting the technical requirements; in addition, the asset can operate in medium stay and generate sufficient NOI to cover the preferred return without the need for the license.

• Operational Risk: the asset's cash flow depends on the quality of the operator's execution. Mitigated by being a top-level professional manager with projections aligned with market comparables.

• Liquidity Risk in Disinvestment: the Plan Reside license has a term of 15 years, which may limit the universe of buyers. Mitigated by the liquidity of licensed tourist assets in the center of Madrid among institutional investors and by the alternative of repurchase by the developer.

• Risk of Cost Increase: the residual capex could deviate upwards. Mitigated because the scope of the works is clearly delimited and does not require additional permits.

• Developer Risk: insolvency, fraud or incompetence of the developer. Mitigated by the solid proven track record of Jamison Group, its contribution of 25% of the equity and the preferred return structure that aligns their incentives with investors.

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Warnings and Risks

Urbanitae Real Estate Platform (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 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 compared to 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.