New project: 13% annual debt investment in a hotel and luxury villas on the Tuscan coast

Next Thursday, April 30 at 16:00 (UTC+2), we open investment in the Arianna project, a new real estate debt opportunity in Italy. This is Urbanitae’s third operation in the country and the second in the Forte dei Marmi area, one of the most established luxury coastal destinations in the Mediterranean.

• 📅 Investment opening: Thursday, April 30 at 16:00 (UTC+2)
• 🎙 Project webinar: Wednesday, April 29 at 12:00 (UTC+2)

In this webinar, we will explain all the details of the project and answer investors’ questions.

A beachfront hotel asset

The project involves granting a mezzanine loan to finance the acquisition and repositioning of the Hotel Arianna, a beachfront hotel asset located in Marina di Pietrasanta, on the southern edge of Forte dei Marmi.

The operation includes a full refurbishment of the hotel, which will feature:

• 42 rooms across five floors
• A rooftop SPA with panoramic terrace
• Restaurant and bar
• Fully renovated common areas

The project scope also includes two high-end residential villas: Villa Residencial and Villa Dependance, both with private gardens, swimming pools, and luxury finishes.

Forte dei Marmi and Versilia: established luxury on the Tuscan coast

The asset is located just a few minutes’ walk from the center of Forte dei Marmi, opposite the Versiliana Park and with direct access to some of the most exclusive beach clubs on the coast, such as Twiga, Augustus, and Principe Forte dei Marmi.

Versilia, on the Tuscan coast, combines natural surroundings, beaches, high-end services, and proximity to iconic destinations such as Forte dei Marmi and Viareggio. It is one of Italy’s most renowned luxury tourism markets and a location with strong demand from international buyers and guests.

This beachfront location gives the project a distinctive positioning within the premium hotel-residential segment.

Project sponsor

The project is managed by Setha Group, a real estate investment and development firm with over a decade of experience in identifying, acquiring, and developing brownfield sites in the UK and Italy.

Its founder and CEO, Manuel Alsoni, has extensive experience in the sector, having led more than 20 projects, with an aggregate GDV (gross development value) exceeding £1 billion and more than 1,000 units delivered across London, Southeast England, and major Italian markets.

Setha Group acts as both developer and investor, allowing it to maintain direct control over design, execution, and costs. It also has active experience in the Versilia area, including a luxury villa refurbishment project currently under development at Via dell’Acqua 166, Forte dei Marmi, also in partnership with Urbanitae.

A project with senior financing and committed capital

The sponsor commits approximately €3.01 million in equity, of which around €2.04 million has already been invested at the time of financial closing.

The project also benefits from a senior loan from Solution Bank of €7.5 million, of which €5 million has already been granted, while €2.5 million, allocated to CapEx (capital expenditure for construction, equipment, and improvements), is in the final stage of approval.

Total junior financing amounts to €8 million, of which:

• €3 million will be provided by Urbanitae investors
• €5 million will be provided by external investors

What is a mezzanine loan?

Urbanitae’s investment is structured as a fixed-rate mezzanine loan.

Mezzanine debt is an intermediate layer of financing between senior debt and equity: it ranks behind the main bank loan but ahead of shareholders’ equity. Due to this subordinated position, it typically offers higher returns than senior debt.

Key terms of the loan:

• Amount: up to €3,000,000
• Interest rate: 13.0% annual simple
• Total return: 26%
• Term: 24 months
• Possible extension: additional 12 months
• Minimum interest: equivalent to 9 months
• Interest and principal payment: at maturity

The portion of the loan allocated to refurbishment works will be drawn through monthly certifications, subject to approval by the project monitor.

Early full repayment is allowed at any time, with a minimum return equivalent to 9 months of interest.

Loan guarantees

The loan benefits from a security package tailored to its mezzanine structure:

• First-ranking pledge over 100% of the SPV shares
• First-ranking pledge over the SPV’s bank accounts
• Subordination of corporate and shareholder loans granted to the SPV
• Sponsor commitment to inject additional equity in case of construction cost overruns

Additionally, as in all debt projects, a project monitor will oversee construction certifications, progress, potential deviations in timeline or cost, and approve monthly drawdowns.

Exit strategy

The exit for Urbanitae investors is expected through refinancing of the loan in 2028, supported by two main drivers:

• The sale of the two residential villas
• The stabilization of the hotel under a lease agreement with EGA Hospitality

The villas will be marketed through Setha Group’s direct sales channels, supported by local brokers specialized in the ultra-prime segment of Forte dei Marmi and Marina di Pietrasanta.