The project has a fixed-rate loan strategy, which consists of financing the developer for the acquisition of two commercial premises and the development of 65 storage rooms and 5 tourist apartments distributed in two independent actions. The developer has two deposit contracts signed with the owners of the premises for their acquisition. In the urban planning area, the Alcorcón project has favorable urban viability, while the Prosperidad one has the Responsible Declaration processed before the corresponding ECU. All costs associated with the project will be assumed between the loan and the developer's own resources. The developer's intention is to develop both assets for their subsequent marketing. The exit of the investors will occur once the storage rooms are sold.

The work is expected to last about 16 months and the project as a whole a maximum of 18 months plus a possible extension of 6 months including the process of selling the final units.

STRUCTURE

The operation is going to be articulated through a company created by the developer exclusively for the project: SPV TORRES 02, S.L., a Spanish nationality company. The operation is going to be structured via debt, where Urbanitae investors will grant a loan to the company.

The main characteristics of the debt are as follows: (more information in the document "Fundamental Data of the Investment"):

•             Amount: 1,105,000€.

•             Loan term: 18 months plus a possible extension of 6 months.

•             Fixed-rate loan of 11% per annum.

•         The loan interests will be paid at maturity. The developer can cancel the loan at any time during the life of the loan, but remunerating the investor with a make whole of 18 months of interest.

Regarding the guarantees of repayment of this loan, the following is established in the debt contract:

●       Promise of mortgage on the property where 65 storage rooms will be developed, located at Calle Matilde Díez 14 – 28002, Madrid (Prosperidad).

●       Promise of mortgage on the property where 5 apartments will be developed, located at Calle Tablas de Daimiel 3 – 28924, Alcorcón (Proyecto Puerta del Sur).

●       Pledge of the shares of the SPV developer.

WHY INVEST?

There are several reasons to invest in this project:

•             The project will be promoted by a company linked to the manager with whom Urbanitae has collaborated on 22 occasions and has successfully returned 15 projects.

•             In the Prosperity Project, the building permit is processed as a Responsible Declaration and therefore it is not necessary to wait for a favorable report from the Administration to start the works. On the other hand, the South Gate Project already has the change of use to tertiary approved and the license is in process. The promoter, very experienced in this type of projects, estimates that in a maximum of a month and a half it will be approved to be able to start the works.

•             The return that the investor will get will be 11% per year.  

•       The project has a promise of first degree mortgage on the properties in which the project will be developed. In addition to the pledge of the shares of the SPV promoter.

WHEN WILL I RECOVER THE INVESTED MONEY?

The term of the loan that will be granted to the promoter is 18 months with a possible extension of 6 months.

The deadlines foreseen by the promoter for the operation are:

•             Fourth quarter 2026, granting of the loan by Urbanitae to the promoter and acquisition of the properties and start of the project. 

•             First quarter 2028, end of the works and repayment of the loan.

RISKS

All investments carry a risk. We detail the clearest risks that have been identified for this project:

•             Diversion of fixed costs associated with the investment, unforeseen construction issues that hinder the repayment of the loan. 

•             Risk of delays due to unforeseen issues associated with construction.

•             Risk of not selling enough units in time to make the repayment of the investors' debt.

•             Possibility of changing the agreed conditions. This risk includes potential substantial changes that may occur from the start of the funding campaign until the formalization of the loan contract, in which case the project would be cancelled and the investment 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 investment of the project, 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 received funds, 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;

•             Urbanitae managers or employees;

•             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 persons 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 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 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.