Invest in Málaga with a 13% return

New project with Cogitari Homes! We return to Málaga to develop six luxury villas in the renowned Pinares de San Antón neighborhood. Do you want to invest in Málaga with a 13% return? You can do so next Wednesday, July 3rd at 4 PM (UTC+2). Here are all the details.

The Pinares de San Antón project involves developing a luxury housing complex in the eponymous neighborhood of Málaga. We will participate in phase I of the project, which includes the construction of the urbanization and retaining walls, and six luxury villas.

The homes will have four or five bedrooms and three or four bathrooms. They will also feature three floors – a basement and two above ground – and will be located in a private community with security. Amenities include three or four parking spaces, an office, a games room that could be converted into a cinema or gym… The plot has a large garden with covered terraces and a pool. The Pinares de San Antón neighborhood is located on the Cerro de San Antón, in a natural and mountainous area on the outskirts of Málaga, which provides the villas with direct sea views over the bay of Málaga.

In this project, we are collaborating again with Cogitari Homes, with whom we have already financed the Villa Alcalá and Gate 3 projects – the second phase of which is already published on the platform. Prime residential is the specialty of this Danish-origin developer, which has over 30 years of experience.

13.1% total return

This project follows a debt strategy. The total loan amount is 9,410,000 euros. Out of this total, Urbanitae will finance 5,000,000 euros. This time, we will finance the tranche A of the loan, amounting to 2,930,000 euros. The duration is 14 months with an annual rate of 11.25%.

The loan contract allows for full early repayment at any time, subject to a minimum guaranteed return equivalent to 14 months of interest – which would result in a total return of 13.1% for the investor. An extension of 6 additional months beyond the 14 months is permitted, contingent upon meeting three milestones: an 80% construction progress rate; a 67% sales progress rate (4/6 sales), and project and asset obligations being up to date.

What are we financing at Urbanitae? Tranche A will be used to cover 28% of construction costs and 16% of the general project costs. The developer already owns the asset, which was acquired with their own funds.

First-rank mortgage guarantee and ongoing construction

One of the strong points of the project is that the building permit is already in effect. Furthermore, construction began in April 2024. At the same time, we have set a high level of guarantees in the contract. The main guarantee is the first-rank mortgage on the six registral properties that make up the project – phase I, which we are financing – and also on the seven registral properties of phase II.

Additionally, the loan’s LTV (Loan to Value) is less than 57%. This means that we are lending the developer an amount equivalent to 57% of the asset’s value. If they cannot repay and we have to execute the mortgage, the sale of the asset would more than cover the principal and interest.

In this video, our CEO, Diego Bestard, and the developer explain the project’s details.