STRUCTURE

The project has a capital gains strategy, which consists of an alliance with the developer for the development of a promotion in Albal, Valencia.

The contributions from Urbanitae investors will be delivered to the developer via a capital increase to the vehicle company that will gather all the contributions from Urbanitae investors in the project. This company will later increase capital in the project's promoting company.

The management model guarantees a total alignment of interests since the developer will invest his own capital and that of his partners (€1,660,000, distributed in €900,000 in this first tranche and €760,000 in the second tranche, upon obtaining the license) along with that of Urbanitae investors (€2,000,000) and additional investors (€1,600,000) in this first tranche, to which will be added €3,040,000 additional in the second tranche, upon obtaining the license.

A distribution structure has been established in which Urbanitae investors have a priority of collection until they recover their investment plus a return of 21.15% IRR. The investors of the second tranche will, for their part, have a preferential return of 17.29% IRR. Only after satisfying these preferential returns, the developer will recover his capital and equivalent profitability. Additional profits above this threshold will be distributed 50% for the developer, 5% for capital structuring, and the rest according to the percentage of capital held by each party.

WHY INVEST?

There are several reasons to invest in this project:

Preferential return:

A preferential return equivalent to a net IRR of Corporate Tax of 21.15% has been structured for Urbanitae investors of Tranche 1. This structure protects the Urbanitae investor from possible deviations in time, construction costs or sale prices, since the developer subordinates the collection of his capital contribution and his profit to the achievement of the preferential IRR.

Attractive market:

The promotion is located in Albal, within the southern metropolitan area of Valencia, a consolidated and densely populated residential area, less than 10 kilometers from the center of the capital and with excellent connectivity (V-31, A-7 and new Renfe station 400 meters away). It is a market with strong demand for new housing from local buyers, favored by proximity to Valencia and the relative scarcity of new product in the municipality.

Competitive product:

The project's volumetry in 3 independent towers allows optimizing homes with more compact surfaces, taking advantage of 4 facades of natural light and 100% of the exterior homes, a competitive advantage in the market.

Bank financial backing:

The project will have senior bank financing committed for an approximate amount of 35 million euros, including the amounts delivered on account by customers, currently in negotiation with 2 entities

ECONOMIC SCENARIOS

According to the CNMV criterion, in addition to the base (favorable) scenario proposed by the manager and contrasted from Urbanitae, in Equity projects two additional scenarios must be published that show potential variations in the business plan. These scenarios reflect the project's costs as they are, but do not represent the premium of the Tranche 1 investor. This is because this investor has a preferential equity of 21.15%, which generates a CoC higher than that of the project as a whole, to the detriment of the promoter —who is remunerated after the preferential of the investors and on the excess margin— and of the investors who will enter later.

FAVORABLE

The base, or favorable, scenario contemplates the income and expense estimates proposed by the manager, verified by Urbanitae, and contrasted by the market study.

In this project the total revenue forecast amounts to €55,826,416, while the estimate of the total costs for the execution of the promotion corresponds to €47,285,862.

MODERATE

The moderate scenario contemplates an upward deviation of the construction costs estimated by the manager and a decrease in housing prices.

In this project, an increase in above-ground construction costs of 5% and a decrease in sales prices of 5% has been considered, with total income of €53,184,682 and total costs of €48,221,939.

UNFAVORABLE

The unfavorable scenario contemplates an increase in construction costs and a decrease in sales prices wide enough to obtain a negative result, with partial loss of the contributed capital.

In this project, an increase in above-ground construction costs of 10% and a reduction in sales prices of 17% has been considered, which would result in a total income figure of €46,580,346 and total costs of €47,681,409, reduced compared to the favorable and moderate scenarios as the payment of Corporate Tax is avoided.

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.

As an example, in the FAVORABLE scenario, the calculation would be REVENUE FORECAST (€55,826,416) minus COST ESTIMATE (€47,285,862) divided by the total equity (€8,300,000).

The result of this quotient multiplied by 100 will represent the profitability percentage on the contributed capital of this scenario.

The forecasts are mere estimates, and are subject to variations that may arise from the economic, social or other situation throughout the duration of the project.

MARKET

There is information available about 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 48-54 months.

• Third quarter 2026 – capital increase and administrative procedures

• Fourth quarter 2026 – start of marketing

• Fourth quarter 2027 – obtaining the license and capital increase of the second tranche

• First quarter 2030 – end of construction.

• Fourth quarter 2030 – delivery of homes, liquidation of the company and distribution of profits to investors.

It is important to bear in mind that in any real estate promotion, deadlines can vary both upwards and downwards.

RISKS

All investments carry a risk. Below, we detail the most relevant risks that we have specifically identified for this project:

·      Risk of cost increase: Possibility of deviation in construction costs or rise in raw material prices.

·      Risk of administrative delay: Risk of delay in obtaining the license.

·      Commercial risk: there is the possibility that the sales pace of the 240 units is slower than expected.

·      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 capital increase, in which case the project would be canceled and the capital contributed by the investors would be returned.

---------------------------------------

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 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 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 project investment, the deadline for fundraising 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 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 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, 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 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.