Invest in Málaga with a 20% return

We don’t want to bid farewell to the year without offering you new investment opportunities. In this case, we’re talking about a luxury real estate project in Benahavís, between Marbella and Ronda. If you want to invest in Malaga with a 20% return, this is your project.

This time we travel to Benahavís, one of Malaga’s main destinations, 7 km from the coast. The Gate 3 project involves granting a loan to finance the development of three luxury villas. Each home has three floors and five bedrooms, along with three bathrooms and a guest toilet, an entertainment room with a bar and TV area, a private gym, and even a wine cellar. And outdoors, a private pool, solarium, and a space for barbecues…

The developer is Cogitari Homes, a group specializing in the construction and development of luxury villas for sale and high-end apartments for rent.

10% annually and building permit

The developer owns the land, free of charges, and has had a building permit since December 2022. In fact, construction began in September 2023 and has progressed by 15%.

The Gate 3 project operates on a debt strategy. Urbanitae investors will enter the project via a fixed annual 10% interest loan, intended to cover all costs associated with developing the villas until their sale. Urbanitae investors’ exit will occur through the sale of the units that make up the development.

The total loan amount is €6,450,000. Urbanitae investors’ contribution amounts to €5,000,000, broken down into two tranches. The first tranche amounts to €2,815,000, which is the Gate 3 project’s target. The second tranche will be €2,185,000; both will finance the works and cover certain soft costs. The remaining €1,450,000 will be contributed by institutional investors, adhering to existing debt, either in the second tranche or a third tranche.

First-rank mortgage guarantee

Part of the first tranche as well as tranches two and three will be disbursed by the developer through monthly work certificates.

The loan term is 24 months. However, full early repayment of the loan will be allowed at any time, subject to a guaranteed minimum return equivalent to 18 months of interest. An additional 6-month extension to month 24 is also permitted, subject to 100% progress on the construction.

Moreover, the operation has a high level of guarantees. The debt contract establishes a first-rank real mortgage guarantee on the three registered properties that make up the project, through a collateral agent. Investors entering the subsequent tranches will be subrogated to this same mortgage. It also establishes a first-rank pledge on the SPV’s shares and on the SPV’s bank accounts.

In this video, Cogitari’s CFO, Rafael Vázquez, and our CEO, Diego Bestard, explain the details of the Gate 3 project.