PROJECT DESCRIPTION

Mexto is a Swiss capital promoter and investor specializing in the luxury residential segment in Portugal, focusing on prime rehabilitation and high-end new construction in Lisbon and its surroundings. Present in Portugal since 2017, it has developed a project volume of between 200 and 250 million euros, with about 71,000 m² of built area and more than 269 homes. Urbanitae already co-invests with Mexto in the Castilho 3 project, located a short distance from this asset.

The project has a capital gains strategy and consists of an alliance with the manager to develop a high-end residential building in Lisbon, Portugal, composed of 6 high-end homes (typologies from 2 to 5 duplex bedrooms), with large terraces, 17 parking spaces and exclusive common areas such as a swimming pool, gardens and a gym designed to maximize the comfort and quality of life of the residents.

The contributions of Urbanitae investors will be delivered to the manager via a capital increase to the vehicle company that will group Urbanitae investors: TERRACOTA OPPORTUNITIES 9, S.L. This company will later enter the Portuguese project promoter company, MEXTO QCO, UNIPESSOAL LDA. The manager has approved bank financing planned for an amount of 14,000,000 € (2,150,000 € for the acquisition of the plot and 11,850,000 € for construction).

The contribution of Urbanitae investors will go to a capital increase in MEXTO QCO, UNIPESSOAL LDA and to provide the company with liquidity to support the project costs not covered by the manager, the partners or the financing, until the building is sold.

The acquisition of the property is scheduled for September 2026. As of the launch date of this project, the construction license has already been granted and demolition works have already been carried out. The risk of licenses is therefore eliminated. The start of the work is scheduled for October 2026, with an estimated duration of 24 months.

Once construction has started, the homes will be marketed for sale, with the aim of maximizing the pace of pre-sales before the completion of the work. The average sale price forecast in the business plan is €16,174/m² of sellable area, which represents a total estimated sales amount of €27,447,650. The sale prices of the promoter's business plan have been contrasted with the new construction comparables in the area.

STRUCTURE

The operation will be structured via a capital increase, where Urbanitae investors will make a capital contribution to the vehicle company of the operation, which in turn will increase capital in the project promoter company. This company has approved bank financing from a leading bank in Portugal, to cover the cost of the development of the work.

A capital distribution has been agreed with the Promoter that incentivizes him to optimize the return on invested capital. The distribution of profits is made in tranches, depending on the IRR achieved by the project:

• Up to an IRR of 15.0%: all capital is remunerated pari passu and profits are distributed according to the capital structure of the company;

• Between an IRR of 15.0% and 20.0%: the manager receives 25% of the excess generated in that range as variable remuneration, and the remaining 75% is distributed among the partners according to the capital structure.

• Above an IRR of 20.0%: the manager receives 50% of the excess and the remaining 50% is distributed among the partners according to the capital structure.

The manager, Mexto, will be dedicated to the comprehensive management of the promotion.

WHY INVEST?

There are several reasons to invest in this project: 

• Ongoing project with license risk eliminated. The construction license has already been granted and the demolition works have already been executed. The start of works is scheduled for October 2026, immediately after the closing of the acquisition, which places the project in a very advanced execution phase compared to its launch.

• Scarce product in an area with very limited supply. The project offers 6 ultra-prime homes averaging 283 m², with private terraces, outdoor pool, gym, common areas and 2 to 4 parking spaces per home. 4 and 5 bedroom types of this size are very scarce in Lisbon, where the usual product is between 100 and 200 m².

• Sale prices validated by comparables. The average price of the business plan, €16,174/m², is in line with the Castilho 3 project being developed by Mexto. In addition, the market report is favorable in terms of sales forecasts, considering that this is a quite unique product in the Lisbon market not only due to the location, but also to the qualities of the homes, common areas and exclusivity of the project.

• Top-level developer with own capital committed. Mexto, a Swiss capital developer, has developed between 200 and 250 million euros in Portugal since 2017, and already co-invests with Urbanitae. The developer will invest 45% of the total equity, which directly aligns their interests with those of Urbanitae investors.

• Prime location in Avenidas Novas (Lisbon). The asset is located at Rua Tomás Ribeiro 89, on the Marqués de Pombal – Avenida da Liberdade axis, a consolidated residential area with high demand for quality housing and a very limited supply of new construction.

ECONOMIC SCENARIOS

According to the CNMV criterion, 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 the revenue and expense estimates proposed by the manager, verified by Urbanitae and contrasted with the comparables of new construction in the area. In this project the total revenue forecast amounts to €27,447,650, while the estimate of the total costs for the execution of the promotion corresponds to €23,675,400.

2. MODERATE

The moderate scenario contemplates a 20% upward deviation of the construction costs estimated by the manager, which raises the forecast of total costs to €25,067,893, keeping the revenues at €27,447,650.

3. UNFAVORABLE

The unfavorable scenario contemplates an increase in construction costs and a drop in sales prices wide enough to result in a negative outcome for Urbanitae investors, with partial loss of the contributed capital. In this project, a 20% increase in construction costs and a 10% reduction in sales prices compared to the favorable scenario have been considered, which results in a total revenue figure of €24,702,885 and total costs of €24,814,797.

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 (€27,447,650) minus EXPENSE FORECAST (€23,675,400) divided by the total Equity (€7,160,654). 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

A market study has been carried out to determine whether the sales prices proposed by the manager are reasonable. The technical due diligence, considering the unique characteristics of the asset and the growing demand for luxury products in the Portuguese market, has been favorable regarding the market prices assumed in the business plan. In addition, we have the example of Castilho 3, a project of the same developer and with Urbanitae as co-investor, which is selling well and with values in line with those estimated in this project.

The project has been subject to a commercial due diligence carried out by Básico.

WHEN WILL I RECOVER THE INVESTED MONEY?

The estimated duration of this project is 26-30 months.

• September 2026 – Capital investment and closing of the property acquisition

• October 2026 – Start of construction

• Third quarter 2028 – End of construction (estimated duration of 24 months)

• January 2029 – Completion of sales and exit from the company

It is important to note that in all real estate promotions, 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: 

• Increase in the deadlines set in the project, due to delays in marketing.

• Deviation of the fixed costs associated with the investment, unforeseen in construction.

• Delays in the sale, and/or need to lower its price to attract customers.

• Commercial risk: as of the launch date, pre-sales have not started, so visibility on the absorption rate is still limited.

• Increase in the deadlines set in the project, due to delays in the estimated months of work.

• Possibility of changing the agreed conditions. This risk includes potential substantial changes that take place from the start of the funding campaign until the formalization of the investment contract, in which case the project would be cancelled 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 regard, Urbanitae guarantees that the investments of any of these individuals 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 Conduct Regulation of Urbanitae, these investors are obliged to internally communicate these operations.

Once the investment in the project is closed, Urbanitae will provide in the project's investment area information 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.