New project! Invest in Málaga with a 13% total return

We present a new debt project at Urbanitae. Next Friday, August 9th at 12 pm (UTC+2), we offer you the opportunity to invest in Málaga with a 13% total return over a 12-month period. Here’s everything you need to know.

With the Bulevar 360 project, we head to Málaga. In this case, it involves granting a bridge loan to finance part of the acquisition costs, urbanization, general costs, and other fees and expenses until obtaining the building permit and the minimum pre-sales necessary to develop this promotion.

The project contemplates a first disbursement that will cover the necessary expenses before developing 165 homes in a residential promotion with approximately 17,000m² of buildable area. The homes include large terraces, pools, green areas, and playgrounds. Additionally, each apartment will have between 1 and 4 bedrooms, an equipped kitchen, a garage, and a storage room included in the price.

The Bulevar 360 project is located in the Cortijo Merino sector in Málaga. This sector is undergoing urbanization, situated within the productive circle of the city, next to the University of Málaga, the Andalusian Technology Park (PTA), and the city’s main business parks.

The manager of this project is Nuovit, with over 30 years of experience specializing in new construction houses and apartments for sale. This would be the third project financed with Urbanitae after Las Lagunas de Mijas and Oceánika. For the Bulevar 360 project, Nuovit has acquired the asset with its own funds amounting to 8 million euros, which currently encumbers the asset in the first rank.

13% Return in 12 months

This promotion is a debt project. Urbanitae investors will come together to provide a loan to the promoter. In this case, Tranche A is a bridge loan to finance part of the acquisition, urbanization, general costs, and other fees and expenses of the project.

The total loan amount is €9,325,000, of which €5,000,000 will be financed through Urbanitae and the remaining €4,325,000 through external investors.

This project is divided into two tranches, Tranche A and Tranche B. Tranche A, in turn, is divided into two disbursements, the first for an amount of €1,660,000 to cover urbanization expenses, general costs, and fees. The second disbursement of this tranche, up to €5,175,000, will take place in September 2024, with the aim of refinancing the mortgage burden on the asset and mortgaging the asset in the first rank. Both disbursements will have a fixed annual rate of 13%.

On the other hand, Tranche B, amounting to €2,490,000, will be aimed at partially financing urbanization costs, general costs, and fees from November until the final completion of the work.

Second-rank mortgage guarantee

Regarding repayment guarantees, on this occasion, the debt project establishes a real mortgage guarantee of second rank for the 1st disbursement of Tranche A and of the first rank for the entire loan once the 2nd Disbursement of Tranche A is committed on the registry property on which the project is developed through a guarantee agent. Additionally, the contract establishes a first-rank pledge on bank accounts and on the SPV’s shares.

The project manager applied for the building permit a month ago and expects to obtain it in the next 8-12 months. On the other hand, the urbanization project began in November 2023, so its approval is expected in the next 3-6 months. Additionally, an interesting fact for Urbanitae investors is that the project currently already has 5 reservations, although the marketing process will start in September.

In short, the project is expected to be completed in 12 months—with a possible extension of 6 months. After covering general costs, the refinancing of the first-rank mortgage burden will be carried out. Once achieved, obtaining the permit and the minimum required pre-sales, the bank loan will finally be granted for the exit of Urbanitae investors. In short, the loan repayment is expected in August 2025.

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