The project is currently at a 60% construction progress, with the structural work already completed. The villa was acquired by the developer in 2022 with a building permit, in August 2023 the city council approved the execution project and the name change of the license and subsequently construction work began in the second half of 2024 with the financing obtained through Tranche A.

The Developer of this project is Puro Properties, a Swedish joint venture of two investment funds in which each holds 50%. The company, with a presence in Spain since 2009, has extensive experience in marketing real estate projects on the Costa del Sol, as well as in promoting homes in Sweden, where it has successfully delivered more than twenty homes.

Tranche B of the loan will finance the completion of the villa's construction, including the kitchen budget update and certain quality improvements.

The project has a valid building permit, and the works have been underway since the second half of 2024. With a progress of 60% and the structural work completed, the work is expected to be completed in the first quarter of 2027 and its sale to take place during the second quarter of 2027.

The marketing of the villa, as is usual with this type of luxury assets, will be carried out once a sufficient degree of progress in construction has been reached. Marketing is estimated to begin at the end of 2026.

The equity invested in the project to date amounts to approximately € 1,780,000, corresponding to the acquisition of the asset and general project costs. 

Urbanitae investors will enter the project through the granting of a mortgage loan committed in 2 tranches, to finance construction costs until the completion of the project works. Tranche A, for an amount of € 2,265,000, was financed and signed in June 2024. 

The amount of the Tranche B loan will be € 2,125,000, with a fixed annual rate of 11.25%, a term of 9 months, and the possibility of a 6-month extension at maturity. Also, a minimum interest return equivalent to 7 months is established. 

The exit of Urbanitae investors is expected to occur through the sale of the villa once the works are completed.

STRUCTURE

This operation is structured via debt, where Urbanitae Investors grant a fixed-rate loan to the company Ellen Properties International 2020, S.L.

The total amount of the gross loan amounts to € 4,390,000, to be financed in its entirety by Urbanitae investors. The total loan is structured in two tranches, whose main characteristics are as follows (you can find more information in the document "Fundamental Data of the Investment"):

• Total loan amount: up to a maximum of € 4,390,000, committed in two tranches:

I. A first tranche or Tranche A, for an amount of € 2,265,000, raised by Urbanitae investors. Tranche A was formalized in June 2024 and was used to finance part of the project's construction costs

II. A second tranche or Tranche B, for an amount of € 2,125,000, raised by Urbanitae investors. Intended to finance the remaining construction costs until the completion of the villa. 

• Simple annual fixed interest rate of 11.25% for Tranche B

• Loan term: 9 months + 6 months extension for Tranche B

• Loan interest and principal will be paid at maturity (interest will start accruing from the moment the loan contract is formalized).

• The part of the loan intended to finance construction works will be disposed by the promoter 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 for Tranche B equivalent to 7 months of interest. 

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

• First rank mortgage on the underlying asset of the financing

• First rank pledge on the Borrower's shares

• First rank control pledge, without fund intervention, on the Borrower's current accounts

• Sales mandate in favor of Urbanitae investors

As in all debt projects, this project includes the figure of the Project Monitor, who will review the work certifications, progress in construction, possible deviations in time / cost and who will also approve the monthly loan disbursements.

WHY INVEST?

There are several reasons to invest in this project:

• Underlying asset of the debt is a luxury villa with a 60% progress in one of the most exclusive developments on the Costa del Sol, located on the front line of the Quinta golf course and with sea views. 

• Well-protected debt structure, with first rank mortgage guarantee on the underlying asset, 54% LTV and an irrevocable power of sale in favor of investors.

• Attractive return for the investor, with an annual interest rate of 11.25% and a minimum interest period of 7 months.

MARKET

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

There is information available about the market in the "Market Study" documentation, where you will find a list of houses for sale in the area.

WHEN WILL I RECOVER THE INVESTED MONEY?

The base term for this Tranche B is set at 9 months (maturity in April 2027, coinciding with the second extension of the master financing contract), with an additional extension of 6 months until October 2027:

• July 2026, granting of Tranche B of the loan by Urbanitae investors

• Until the first quarter of 2027, completion of construction works (60% progress)

• Second quarter of 2027, sale of the asset and repayment of the loan granted by Urbanitae investors (Tranche A and B)

RISKS

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

• Risk of deviations in the project timelines, due to possible unforeseen events during the execution of the works. To mitigate this risk, two additional extensions have been approved (one of which has already been activated). The development phase has been longer than expected, mainly because the foundation and earthmoving works could not start when planned due to a period of torrential rains in Marbella. With a progress of 60% and the structural works already completed, the margin for additional deviations is limited.

• Risk of deviations in construction costs derived from unforeseen contingencies. Contingencies of c. € 300k have already materialized, which were financed against Tranche A after being consulted and approved by the investors of that tranche. Given the progress of the project, no additional material contingencies are expected. 

• Delays in the sale of the house that may cause delays in the repayment of the debt, for which two additional extensions have been approved (one of which has already been activated). 

• Possibility of change in 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 (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 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;

• Managers or employees of Urbanitae;

• Individuals or legal entities linked to these partners, managers or employees by control.

In this sense, 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 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.