New Project on the Costa del Sol! 12% Annual Return in Mijas

Urbanitae opens a new real estate investment opportunity: the El Maro project, a debt operation that consists of granting a loan to refinance an existing mortgage on land in Mijas (Málaga) and to fund the initial work for urbanization and parcel preparation.

Financing will open on Friday, October 31 at 12:00 (UTC+1).

Before the launch, we will hold an informative webinar on Thursday, October 30 at 12:00 (UTC+1) with the project management team.

19 High-End Homes

The loan will support the start of a residential development consisting of 19 high-end single-family homes in the El Maro urbanization in Mijas: 13 villas and 6 semi-detached houses.

The developer’s business model is based on a plot sale and self-build strategy: each buyer acquires the urbanized plot with a basic project and then builds their own home. The manager generates part of the profit in two ways: through construction of the homes and by managing some units for rental over a period of up to 15 years.

The urbanization is located on a hill with sea views and easy access to Málaga, Fuengirola, and Marbella. It targets international buyers and high-quality second homes in one of the most sought-after areas of the Costa del Sol.

The land for the El Maro project was acquired by the developer in 2023 with its own funds and currently carries an existing mortgage. Part of Urbanitae’s loan will be used to refinance that debt and part to fund initial works: land preparation, earthworks, wall consolidation, and parcel subdivision.

The basic project has already been submitted to the Mijas Town Hall. The manager has municipal permission to start the adaptation works and expects the new building permit to be granted within up to three months after the final submission of the basic project.

Minimum 9% Return

Main characteristics of the loan:

• Total loan amount: €3,995,000
• Term: 18 months
• Possible extension: 6 additional months beyond the initial maturity
• Fixed interest rate: 12.0% simple annual
• Estimated total return: 18.0%
• Guaranteed minimum interest: 9 months
• Interest and principal payment: at maturity

Early full repayment is allowed at any time, provided the minimum return equivalent to 9 months of interest is met.

How is the loan repaid?

The loan will be repaid through the sale of the resulting plots. The business plan anticipates selling the future single-family homes to end buyers and private investors acting as self-builders.

To repay the principal and interest of the Urbanitae loan, it is sufficient to sell 7 of the 13 plots planned for individual villas, reducing the number of sales required for investor exit.
Marketing will begin immediately after the loan is signed and the land preparation and subdivision works start.

The project has a typical guarantee scheme in our debt projects, including:

• First-rank mortgage on the underlying project asset.
• First-rank pledge on the borrower company shares.
• First-rank pledge on the borrower’s bank accounts, including control over cash flows.

The Manager: Navigare Properties

The project is led by Navigare Properties, a developer with roots in the nautical sector and international presence. Their model combines turnkey high-end home development and subsequent management of some units for long-term rental.

Navigare has already developed a 27-unit project in Switzerland and acquired several adjacent plots in Mijas. In one of these — adjacent to this project — most of the planned units are already sold, confirming market interest in this type of property in the area.