The project manager is CALIZA HOMES, a real estate group based in Barcelona specializing in residential development in Catalonia. Its partners have over 20 years of experience in the real estate and construction sector, and have developed more than 140 residential units through their two brands, Caliza Homes and Loess Homes Club.

The asset consists of a residential plot of 5,949 m² that already has a Building License granted. The project contemplates the construction of 31 terraced houses in 6 blocks, with landscaped areas and a swimming pool, for a total of 4,177 m² built.

As of today, the project already has 5 reservations, 16% of the total number of homes. 

The structure of the houses will be executed through prefabricated concrete construction, by a top-level construction company with over 50 years of experience, specializing in industrialized construction.

The manufacturing of the structure has an estimated period of 4 months, followed by an on-site assembly of 2-3 months additional. The manufacturing and assembly works will be organized in two phases: a first phase that will cover two-thirds of the houses, and a second phase for the remaining third.

Simultaneously with the manufacturing of the structural modules, earthmoving, foundation, and sanitation works will begin. Once phase 1 of manufacturing and assembly is completed, interior and conditioning works will continue, allowing the different work fronts to advance in parallel, without stoppages.

The overall estimated period until the completion of the construction works is 22-24 months.

The marketing of the homes will be carried out through a local agent, in collaboration with the project manager himself. 

Caliza Homes is currently developing another promotion for 13 homes in the Figueres area under the same construction system, which has been very well received commercially, reaching a pre-sales level of 84% with a work progress of 50%. 

This previous experience supports both the existing demand in the area and the validity of the construction system used in the Clay Project.

The project manager has disbursed to date own funds of approximately 1.3 M€, for the acquisition of the land and the general costs of defining the project and licenses. Additionally, the manager commits to contribute own funds amounting to 1.47 M€ to cover the construction costs and general costs pending from the project, in line with the established milestones.

This additional contribution is guaranteed by an Equity Commitment Letter and, as an additional guarantee, a first rank mortgage on a second asset, reinforcing the promoter's financial commitment to the project.

Urbanitae investors will enter the project through the granting of a loan committed in 3 tranches, to partially finance the construction costs and general costs of the project.

Tranche A, for an amount of 2,430,000€, will have a fixed annual rate of 11.0% and a term of 27 months, with the option to extend for an additional 6 months in month 27 (27+6).

The use of funds from Tranche A of the loan will be used, on the one hand, to face the first disbursement corresponding to the manufacturing of the prefabricated structure of Phase 1, as well as to finance the construction costs associated with earthmoving, foundation, and sanitation of the promotion.

In order to guarantee the funds disbursed for the manufacturing of the structure, the construction company will issue a first demand guarantee in favor of the promoter through a top-level banking entity. 

The exit of Urbanitae investors will occur through the income from the sale of the homes.

STRUCTURE

This operation will be structured via debt, where Urbanitae Investors will grant a fixed-rate loan to the company ANYWAY INVESTMENTS, S.L.

The total amount of the gross loan will amount to €6,200,000, committed in three 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 €6,200,000, committed in three tranches:

i. A first tranche or Tranche A, amounting to €2,430,000, fully contributed by Urbanitae investors. 

ii. A second tranche or Tranche B, amounting to €1,800,000, fully contributed by Urbanitae investors.

iii. A third tranche or Tranche C, amounting to €1,970,000, fully contributed by Urbanitae investors.

● Simple annual fixed interest rate: 11.0% for Tranche A. 

● Loan term: 27 months, with the option to extend for 6 months in month 27 (27+6, up to month 33).

● Interest and principal of the loan will be paid at maturity ('bullet'), starting to accrue from the formalization of the loan contract. Early repayment, partial or total, is allowed at any time, subject to the payment of a minimum guaranteed interest of 16 months for Tranche A. 

● Loan disbursements for construction costs will be made monthly against work certifications, subject to the review and validation of an external Project Monitor appointed by Urbanitae (except for the payment to the contractor carrying out the prefabricated structure).

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

● First rank mortgage real guarantee on the asset subject to financing, with Mortgage Responsibility of 140% of the principal.

● First rank pledge without intervention of funds on the project's bank accounts.

● First rank pledge on the shares of the Borrower company.

● First rank mortgage real guarantee on a second promotion located in L’ Ametlla del Vallès, as additional guarantee. 

● Commitment letter for additional capital contribution (Equity Commitment Letter), by which the developer commits to contribute additional own funds for construction costs, contingencies and any cost overrun not contemplated in the Business Plan.

● Cash sweep of 100% of the income from the sale of the houses, intended to repay the Urbanitae loan.

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

WHY INVEST?

There are several reasons to invest in this project:

● First rank mortgage guarantee on the asset, reinforced with an additional guarantee on a second promotion of the developer.

● The project already has a Building License granted, which reduces urban risk and allows for immediate construction start after signing.

● Prefabricated concrete construction, which reduces execution risk by offering fixed deadlines and costs, greater industrial quality control and less dependence on specialized labor on site

● Reservations already committed, with 16% of the homes reserved to date and a list of more than 50 additional interested parties. 

● The return of 11.0% per annum for Tranche A, with a minimum guaranteed return equivalent to 16 months of interest (14.67%).

● Solid experience of the manager: more than 20 years in the sector and 140+ units developed in Catalonia, with a comparable project in prefabricated construction in Figueres

MARKET

A market study has been carried out to determine whether the selling prices proposed by the manager are reasonable. In turn, a Commercial Due Diligence has been carried out which has issued a favorable report corroborating the proposed prices and the promoter's business plan. 

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 27 months, with a possible extension of 6 additional months in month 27 (27+6, up to month 33).

● July 2026, loan concession by Urbanitae investors and start of construction works.

● First quarter 2027, end of the assembly of the prefabricated structure and continuation of interior works and urbanization of common areas. 

● Third quarter of 2028, completion of construction works, deed of the homes and repayment of the loan to Urbanitae, within the 27-month period (estimated maturity in October 2028).

RISKS

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

● Risk associated with the prefabricated construction system, derived from the anticipated disbursements necessary for the manufacture of the structure before its assembly on site. This risk is mitigated by the issuance of a first demand guarantee by the construction company in favor of the promoter, which guarantees the correct application of the disbursed funds to the manufacture of the structure, in accordance with the payment milestones established in the construction contract. 

● Commercial risk derived from a possible delay in the sale of the homes, which could cause delays in the repayment of the debt. This risk is mitigated by several factors: the project already has 16% of committed reservations and a list of more than 50 additional interested parties, which shows solid demand from the initial marketing stages. Additionally, a Commercial Due Diligence has been carried out that has validated both the prices established in the Business Plan and the expected sales schedule, confirming that the 27-month loan term is sufficient to achieve 100% of sales.

● Risk of deviations in construction costs. The Business Plan includes a 5% contingency item that, if materialized, will be financed in a 50%-50% proportion between the promoter's own funds and Tranche C of the loan. Additionally, the promoter commits to provide the necessary capital to cover any cost overrun not contemplated in these contingencies. 

● Risk of deviations in construction deadlines. The overall estimated period until the completion of the works is 22-24 months, which leaves, within the total loan term of 27 months, a margin of 3-5 months for marketing, deed of the homes and repayment of the loan before its maturity. This time cushion allows for possible moderate deviations in the work schedule without compromising the timely repayment of the financing.

● Risk associated with the commitment to contribute Equity by the promoter. This risk is mitigated by the Equity Commitment Letter and the first rank mortgage on a second promotion as Additional Guarantee.

● Possibility of changing the agreed conditions. This risk includes potential substantial changes that may occur 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 would be returned.