New project! 12.5% return in 12 months
We are excited to introduce a new investment opportunity. This time, we return to the luxury sector with a project focused on completing the construction of a villa in Benahavís, Málaga. You can invest this Friday, January 17th at 12 PM (UTC+1). Below, we provide all the details about the project.
The Villa Orquídea project involves the completion of a villa with a total built area of 2,309 m² on a plot of 1,740 m². The villa will feature 8 bedrooms, 9 bathrooms, 1 guest restroom, a garage with 6 parking spaces, a garden with pools, and sea views. Additionally, the garden-level floor will include a sauna, massage room, gym, and game room.
The development is located in the El Herrojo residential area, within the municipality of Benahavís, one of the prime destinations in Málaga province. The property is surrounded by landscaped areas, natural vegetation, large beaches, luxury residential complexes, and is close to several golf courses.
The developer is Casas Fintech, an investment management company specializing in the development and promotion of luxury real estate, with extensive experience on the Costa del Sol. Casas Fintech is part of the Portuguese group Grupo Madre SGPS, one of the most renowned investment consortia in Portugal.
12.5% return in 12 months
The Villa Orquídea project is a debt-based investment. The partnership between the developer and Urbanitae investors involves the granting of a second-ranking mortgage loan to cover the land purchase, settled financial costs, and outstanding execution costs for the developer’s bank loan.
The total loan amount for the developer stands at €4,050,575 – secured by a first-ranking mortgage – including €1,744,179 in equity, €1,306,396 in partner contributions, and €1,000,000 in investor contributions during the project.
Initially, Urbanitae commits to a single tranche of up to €3,570,000 at an annual interest rate of 12.5% and a term of 12 months – with a potential 12-month extension at month 12. However, a second tranche may be considered to refinance the mortgage loan.
Approved construction license
A key point for investors is that the development has an approved construction license and all valid urban planning permits. The only remaining requirement is the First Occupancy License (LPO), which will be granted once construction is completed. Approximately 40% of the construction has been completed to date.
As for the marketing of the asset, it will begin once construction has reached approximately 60%-70% completion.However, the developer’s experience in the area suggests that properties are typically sold within 6-12 months after construction is completed, with sales sometimes occurring even before completion.
In this video, the developer and our Real Estate Director, Sergio Arana, explain the project details.
Return in 12 months
The estimated timeline for this project is 12 months. In December 2024, the loan from Urbanitae investors is expected to be granted. From that month until April 2025, the construction is projected to be completed, and from Q4 2025 onwards,the villa will be sold, and the loan repaid to Urbanitae investors.
Have Questions?
Next Wednesday, January 15, at 4 PM (UTC+1), we will hold a webinar with the developer where you can ask questions. You can also contact us at contacto@urbanitae.com or by phone at (+34) 911 23 25 22. We look forward to seeing you!