This week, we present a new capital appreciation project in Marbella with an 11% return on investment. Financing will open next Tuesday, December 5th, at 4:00 pm.
The Villa Olivia project involves granting a loan to finance the development of a luxury villa in Marbella. The loan will cover: 100% of the principal of a mortgage that encumbers the asset, the continuation of the villa’s construction, and a small recapitalization to the promoter of the invested capital.
Villa Olivia is located in Nueva Andalucía, Marbella, within the prestigious La Cerquilla neighborhood.
For this project, we are partnering with SB Property Group, a real estate group specialized in building exclusive homes in Marbella.
11% return and granted building license
This project will be structured as debt, where Urbanitae investors will provide a fixed-rate loan to the entity owning the asset.
The project has been granted building licenses in 2022, and construction began in Q4 2022. Currently, it is 75% complete.
SB Property Group owns the land, with a first-ranking secured debt on it. This loan has allowed the promoter to cover the initial costs of starting the construction.
Urbanitae investors will enter the project through an annual fixed-rate loan of 11%, aiming to repay the principal of a mortgage encumbering the asset, continue the villa’s construction, and recapitalize part of the promoter’s contributed capital. Urbanitae investors’ exit will be through the sale of the property.
Regarding loan repayment guarantees, there is a first-ranking mortgage on the asset, a first-ranking pledge on the SPV’s shares, a first-ranking pledge on the SPV’s bank accounts, an irrevocable power of sale in favor of the lender, and finally, a pledge on the net profit of a development project in Estepona by the promoter, with an expected delivery date in 2024.
In this video, Francisco Conde, Director of Real Estate at Urbanitae, and Diego Bestard, CEO of Urbanitae, explain the project’s key points.
Return in 12 months
The project offers an 11% return over 12 months. In the fourth quarter of 2023, the loan is expected to be granted by Urbanitae investors to the promoter, along with debt refinancing and recapitalization of part of the manager’s capital. The completion of the villa’s construction is estimated in the second quarter of 2024. Finally, in the fourth quarter of 2024, the sale of the villa and repayment of the loan granted by Urbanitae investors is anticipated.
As always, feel free to reach out with any questions about the project at contacto@urbanitae.com or by phone at (+34) 911 23 25 22.
