The manager of this project is ARG Promociones, the second project to be financed on the Platform after the Privilege Project, financed in May 2025. A developer-builder specializing in the development of residential projects based on exclusivity on the Costa del Sol and specifically, in Estepona. They have the architecture studio Complot Arquitectos, with a wide trajectory and experience in luxury residential projects. 

ARG has been carrying out construction and rehabilitation projects since 1982, currently having a team of more than 50 professionals.

The project promoter has already committed a total capital of c. € 540k, and will additionally commit c. € 687k to complete the project along with the Urbanitae loan. This additional capital from the promoter will be progressively committed along with the Urbanitae Loan to finance the construction of the project. 

Urbanitae investors will enter the project through the granting of the second and last tranche of the loan. Tranche A, already formalized, was intended to partially finance the acquisition of the land, while Tranche B will be intended to partially finance the construction costs and general costs of the project. 

The loan was initially formalized with a term of 18 months with a possible additional extension of 18 months conditioned to (i) obtaining at least 5 pre-sales and (ii) the Building License. Both conditions have already been met, so, once the initial maturity of 18 months from the signing of the loan in January 2026 is reached, it will automatically extend for an additional 18 months, until July 2027. 

Tranche B will have a fixed annual rate of 11.25% and a term of 22 months with a minimum interest period of 18 months.

The exit of Urbanitae investors will occur through the sale of the homes, whose total sales target value amounts to € 8.6 million. The marketing of the asset began in July 2025 and the promoter currently has 5 of the 10 homes reserved. The revenues generated by the delivery of these 5 units are sufficient for the full repayment of the loan plus interest. The commercial analysis of the area indicates that the most demanded housing model in Estepona is the one offered by the promotion, units of 2 and 3 bedrooms of high-end new construction. In addition, the project has the differential attraction of being the only new construction in the old town of Estepona.

STRUCTURE

This operation will be structured via debt, where Urbanitae investors will grant a fixed-rate loan to the project's SPV.

The total amount of the gross loan amounts to € 2,600,000, committed 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: 2,600,000 €, committed in two tranches:

- A first tranche or Tranche A, for an amount of 1,040,000 €, which was formalized in July 2025 and was intended to finance part of the land acquisition costs. 

- A second tranche or Tranche B, for an amount of 1,560,000 €, raised by Urbanitae investors. Intended to finance part of the construction costs for the development of the works.

• Simple annual interest rates of 11.25% for Tranche B. 

• Term of Tranche B: 22 months.Tranche A of the loan was initially formalized for a term of 18 months, with an additional extension of 18 months conditioned to the fulfillment of two milestones: (i) obtaining at least 5 pre-sales and (ii) the Building License. Both milestones have already been met, so the loan will automatically extend for an additional 18 months once the initial maturity is reached in January 2026, until July 2027.

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

• The part of the loan intended to finance construction works will be disposed of by the promoter through monthly work certifications, subject to the favorable report issued by the Project Monitor.

Early total amortization will be allowed at any time, subject to a minimum return of interest for Tranche B equivalent to 18 months of interest (make-whole).

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

• First rank mortgage real guarantee on the property subject to the financing, with Mortgage Liability of 150% of the principal of the loan.

• First rank pledge on the social shares of the SPV promoting the project

• First rank pledge on the bank accounts (without fund intervention) of the project in the borrowing SPV.

• Pledge of the collection rights of the revenues from The Oak and Villa Infinity projects to guarantee the additional capital commitment by the promoter. 

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

WHY INVEST?

There are several reasons to invest in this project:

• Quality real estate asset, located in the old town of Estepona, Malaga, being the only new construction promotion in the process of marketing throughout the historic center of the city.

• High degree of commercial progress, with 50% of the Project units reserved to date. The formalization and delivery of these units will generate enough cash to repay the principal plus interest of the Urbanitae Loan.

• Attractive profitability with protected capital: interest rate of 11.25% per annum for Tranche B, with a minimum guaranteed return equivalent to 18 months of interest.

• Solid guarantee package: The project has, among others, a first rank mortgage guarantee on the registered properties where the project will be developed.

•  Experienced promoter: With extensive experience in similar real estate products in Estepona and on the Costa del Sol.

MARKET

A market study has been carried out to determine if the selling prices proposed by the manager are reasonable. In turn, a Technical Due Diligence and a Commercial Due Diligence have been carried out by external agents who have issued favorable reports. 

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 for Tranche B of this project is 18 months:

• July 2025: concession of Tranche A of the loan by Urbanitae investors to the promoter and acquisition of the lands. 

• September 2026: obtaining the building license granted by the Estepona City Council and concession of Tranche B of the loan by Urbanitae investors.

• October 2026: start of construction work

• First quarter 2028: completion of construction work 

• Second quarter 2028: Delivery of the houses and repayment of the loan to Urbanitae.

RISKS

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

• Commercial risk derived from a possible delay in the sale of the remaining houses, which could cause delays in the repayment of the debt. This risk is mitigated by the advanced degree of current marketing (50%) and the support of the favorable report issued during the commercial due diligence, which places the hypothesis of prices and sales rates below what was planned in the promoter's Business Plan, but which comfortably covers the repayment of the loan from Urbanitae investors.

• Risk of deviations in the project deadlines due to possible unforeseen events during the construction phase. To mitigate this risk, the project has the support of an independent Project Monitor in charge of supervising and controlling the execution schedule. Also, the promoter-builder has extensive experience developing multi-family projects in the Costa del Sol area.

• Risk of deviations in construction costs derived from unforeseen contingencies. To mitigate this risk, the loan has the pledge of the collection rights of two additional projects to cover any unforeseen cost not contemplated in the business plan.

•  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 canceled and the investment returned.

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Warnings and Risks

Urbanitae Real Estate Platform S.L. (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 an investment recommendation to potential 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 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 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 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.