New project! Invest in Granada with a 29% return

We are introducing a new debt project on Urbanitae. Next Monday, July 29 at 12 p.m. (UTC+2), we offer you the opportunity to invest in Granada with a 29.1% return in 25 months. Here’s everything you need to know.

The Genil project is somewhat different from our usual debt projects. It involves the granting of a loan to refinance the mortgage burdens and finance pending urban planning procedures until obtaining licenses for two plots in Granada. Both assets are located in the center of Granada, less than 500 meters from the train station. The building on Camino de Ronda Street is close to the Los Pajaritos neighborhood and the university area, while the buildings on the ‘Gran Capitán’ plot are located 500 meters from the Granada Cathedral. The ‘Villa Pineda’ plot – provided as additional project collateral – is located 350 meters from the Camino de Ronda building in the Los Pajaritos neighborhood.

In this project, it is important to distinguish between the promoter and the manager. On one hand, we have the promoter, which is the company that owns the two mentioned plots and the additional plot – ‘Villa Pineda’ – which is managed and owned by investors with extensive experience in the real estate sector.

On the other hand, there is the manager, in this case, ERY Consulting, which is the company responsible for leading the project to meet the milestones within the expected timeframe. ERY Consulting is a cooperative manager with more than 30 years of experience in the sector, specializing in Granada.

Once the license is obtained, 52 and 40 homes will be developed on Gran Capitán and Camino de Ronda streets in Granada, respectively, both assets located in central locations in Granada and less than a kilometer apart. The homes will have two to three bedrooms, two bathrooms, a hall, a living room, and a kitchen. The Gran Capitán building will also include a garage and storage room.

Annual return of 14% and periodic interest payments

The project manager has signed a purchase option for the assets subject to obtaining the following urban milestones: (i) the approval of the replotting and urbanization projects and (ii) the obtaining of the license. The plots are owned by three different vehicles, managed by the sole administrator and owner of the promoting company.

The Genil project is a debt project. Urbanitae investors will enter the project through the granting of a loan divided into 2 tranches. The tranche A, of 2,980,000 euros, will have a fixed annual rate of 14% and a term of 25 months. It will be used to refinance the mortgage burdens on the three underlying plots (collateral for the Urbanitae loan) and part of the pending payments for the approval of the replotting and urbanization projects. Part of tranche B will be financed outside the platform. The total loan amount is 5,870,000 euros, of which Urbanitae will finance a maximum of 5,000,000 euros.

The term for tranche A and the loan is 25 months, with a five-month extension option in month 25. Full early repayment will be allowed at any time, subject to a minimum guaranteed return for tranche A equivalent to 15 months of interest.

One of the most interesting aspects of this project is that it will start generating returns for investors in month 5. The loan interest will be paid every five months – month 5, month 10, month 15, month 20, and month 25 – from the signing of the loan. Interest will start accruing from the moment the loan contract is formalized. The principal will be repaid at maturity.

In this video, the project manager and Diego Bestard, our CEO, explain the key points: