New project! Invest with a 10.5% return in 12 months

We are back with a debt project at Urbanitae. Next Tuesday, July 16 at 4:00 PM (UTC+2), we offer you the opportunity to invest with a 10.5% return in 12 months. Here’s everything you need to know.

This time, we are returning to the Community of Madrid. The Los Fresnos project involves granting a loan to finance the acquisition costs of land and the urban planning costs necessary to obtain a construction license for six single-family homes. The project is located in Boadilla del Monte, the third municipality in Spain with the highest average income and the second in the Community of Madrid. The property is situated in one of the most valuable residential areas of Boadilla.

Regarding the developer, Auric Partners specializes in operations of this type. Founded in 2014, their focus is on real estate consulting, advising buyers and sellers in significant real estate transactions involving purchases and acquisitions, structured financing, and real estate market projections.

10.5% return in 12 months

The Los Fresnos project is a debt project. Therefore, Urbanitae investors will grant a loan to the developer amounting to 1,700,000 euros. The loan term is 12 months, with a fixed interest rate of 10.5% annually. The contribution from Urbanitae investors will be used to finance part of the purchase price, the total VAT of the purchase, and part of the segregation and soft costs of the project.

Full early repayment will be allowed at any time, subject to a minimum guaranteed return equivalent to 12 months of interest. Additionally, a six-month extension is allowed after the 12th month.

First-rank mortgage guarantee

As usual in our debt projects, we have established strict guarantees to protect the investment in case of default. Specifically, the Los Fresnos loan contract establishes a first-rank mortgage guarantee on the registry property where the project is being developed through a security agent. Additionally, we have set a first-rank pledge on the shares of the SPV and on the SPV’s bank accounts.

The estimated project duration is 12 months – with a possible six-month extension after the 12th month. According to the business plan, the period from July 2024 to April 2025 is set for the submission of the segregation project and the obtaining of the construction license. The sale of the plots and the repayment of the loan granted by Urbanitae investors would occur between April and July.

In this video, the developer and Diego Bestard, CEO of Urbanitae, explain the project details.