New project! 7.6% return in 7 months

We present you with a new investment opportunity offering returns in seven months! This time, we head to Valencia to complete a housing development. The Montesano project will be open for investment this Thursday, May 23, at 4 PM. Are you going to miss it?

In this new project, we will provide a loan to the developer to complete the construction of five single-family homes in Montesano, a residential area in Bétera, Valencia. The homes, featuring avant-garde style and high-quality finishes, will have four bedrooms and three bathrooms, distributed over three levels: basement, ground floor, and first floor.

The developer of the Montesano project is Viviz, a company dedicated to real estate marketing and development. It was established in 2014, but its management team has extensive experience in the sector.

Construction license and 90% completion

The Montesano project includes five single-family homes, with construction already 90% complete. It is owned by a developer who, due to the real estate crisis, was unable to complete the construction of five of the six homes that originally comprised the development.

This project involves debt. Urbanitae investors will grant a loan to Viviz of up to 1,280,000 euros, with a term of seven months (extendable by six months) and an annual fixed interest rate of 13%. Therefore, if the project is completed within the seven months planned in the business plan, the total return for Urbanitae investors would be 7.58%.

In addition to the progress of the works, another advantage is the valid construction license and the notarial deed of completion of the works. The remaining works will be undertaken in June, as soon as the asset is acquired with the Urbanitae loan; they should be completed within four to five months.

80% sold

Sales of the homes began in April, and since then, four out of five have been sold. There is already interest in the remaining home, but the developer prefers to wait to maximize the sale price. This is another strong point of the project.

The money from Urbanitae investors will be used to cover the purchase of the asset, construction, and general project costs. The developer contributes nearly 100,000 euros in own funds (6% of the total), while customer down payments amount to more than 340,000 euros. Among the main loan guarantees is the first-rank mortgage on the properties that make up the project.

Urbanitae investors’ exit is conditional on the sale of the five homes. It is true that the loan has an extension option of six months starting from month seven.

The delivery of the homes is scheduled for December 2024, and the repayment of the loan to investors is expected in the first quarter of 2025.

In this video, the developer and our CEO, Diego Bestard, explain the key points of the Montesano project.