We are returning to Porto with Torrinha Gardens II, the second tranche of a real estate debt transaction already familiar to Urbanitae investors. The project consists of partially financing the construction and general costs of a development comprising 27 tourist apartments and one retail unit in a central and well-established area of the city.
The first Torrinha Gardens tranche was launched in March 2026. This new offering completes the financing originally planned by Urbanitae for the project, which is already under construction and benefits from a bank loan that has been approved and will be used for repayment once the required pre-sales threshold is reached.
- 📅 Investment opening: Monday, June 15 at 4:00 p.m. (UTC+2)
- 🎙 Project webinar: You can watch the Torrinha Gardens webinar again, originally held on Wednesday, March 25.
Tourist Apartments in Central Porto
The project is located on Rua da Torrinha, in the municipality of Porto, one of Portugal’s main cities and a major economic, cultural, academic and tourist hub.
The asset has a total gross built area of 3,197 sqm and consists of two adjacent buildings that will accommodate 27 tourist apartments and one ground-floor retail unit. The development includes 17 one-bedroom apartments and 10 two-bedroom apartments, with an average size of approximately 85 sqm. All units will feature either a balcony and/or a private garden.
Location is one of the project’s key strengths. The property is situated close to Porto’s historic center, just a few minutes from downtown Porto and iconic areas such as Cedofeita and Jardim da Cordoaria. It also benefits from excellent access to services, universities, retail areas and public transportation, enhancing its appeal for both residential and tourist accommodation purposes.
A Development Already Under Construction
Torrinha Gardens has a valid building permit, and construction began in October 2025. To date, the project has been financed through the developer’s equity, proceeds from pre-sales, and drawdowns from Tranche A of Urbanitae’s loan.
The project will be operated by LovelyStay, one of Portugal’s leading property management companies for short-, medium- and long-term rentals. Its involvement strengthens the asset’s positioning within Porto’s tourist and flexible accommodation market.
The developer’s projected sales prices have been validated through a market study prepared by Savills.
8.3% Total Return in 10 Months
The transaction is structured as a debt investment through a fixed-rate loan granted to ROUNDNOISES – UNIPESSOAL LDA.
The total loan amounts to €2,000,000, fully financed by Urbanitae investors and structured in two tranches:
- Tranche A: €1,000,000, financed by Urbanitae investors in April 2026.
- Tranche B: €1,000,000, corresponding to this new offering.
The main characteristics of Tranche B are:
- Amount: €1,000,000
- Interest rate: 10.0% simple annual interest
- Total return: 8.3%
- Term: 10 months
- Possible extension: Additional 6 months
- Minimum interest period: Equivalent to 4 months of interest
- Interest and principal repayment: At maturity
Full early repayment is permitted at any time, subject to a guaranteed minimum return equivalent to 4 months of interest.
Loan Security Package
The loan benefits from the following security package:
- Second-ranking mortgage over the asset, with mortgage liability equivalent to 130% of the loan principal.
- Commitment not to draw down the senior debt facility contracted with BPI, except for the repayment of Urbanitae’s loan.
- Pledge over the shares of the project SPV.
- Irrevocable power of sale over the asset, at up to 25% below the appraised value.
Although a first-ranking mortgage has been arranged over the property, no amounts have been drawn under that facility to date. The bank financing will only be activated once specific project conditions are met and will be used to repay Urbanitae’s loan. Therefore, the bank debt and Urbanitae’s loan will not coexist on the asset.
The transaction also features conservative leverage ratios: an LTC of 16.6%, excluding the non-cash contribution of the land as equity, and an LTV of 16.3% based on the completed-value appraisal.
Exit Strategy
Repayment of the loan is expected to occur through the drawdown of the bank facility already contracted with Banco BPI.
This financing can be drawn once the project reaches 50% pre-sales, equivalent to 14 units sold. At that point, the bank financing will be used to repay the bridge loan provided by Urbanitae investors.
The exit mechanism is clearly defined: the senior loan has already been approved, but its drawdown is conditional upon reaching the pre-sales level required by the bank.
Why Invest in Torrinha Gardens II?
Some of the project’s key strengths include:
- Second tranche of an already launched transaction, with construction underway since October 2025.
- Development of 27 tourist apartments and one retail unit in a central Porto location.
- Building permit granted, with the project financed to date through developer equity, pre-sales proceeds and Urbanitae’s Tranche A.
- Fixed 10% simple annual return, equivalent to a total return of 8.3% over 10 months.
- Minimum interest period equivalent to 4 months.
- Bank loan already contracted with Banco BPI, which will be used to repay Urbanitae once 50% pre-sales are achieved.
- Second-ranking mortgage security over the underlying asset.
- Specialized operator, LovelyStay, for the management of the tourist apartments.
Estimated Timeline
The estimated term for Tranche B is 10 months, with a possible extension of up to 6 additional months.
Key milestones include:
- April 2026: Funding of the first loan tranche and continuation of construction works.
- June 2026: Funding of the second tranche and continuation of construction.
- First quarter of 2027: Upon reaching the 50% pre-sales target, Banco BPI is expected to provide the project financing facility and repay Urbanitae investors.
As with any real estate investment, timelines may vary depending on the actual progress of the project, commercialization performance and financing conditions.
A New Debt Opportunity in Porto
Torrinha Gardens II offers investors the opportunity to participate in the financing of an ongoing tourist accommodation development in central Porto, with a granted building permit, construction already underway and a clearly defined exit mechanism linked to an approved bank loan.
The combination of location, a specialized operator, low leverage ratios and repayment through bank financing enhances the attractiveness of this new investment opportunity.
The offering will open for investment on Monday, June 15 at 4:00 p.m. (UTC+2).
Do You Have Questions About the Project?
You can watch the Torrinha Gardens webinar again, originally held on Wednesday, March 25, where the details of the transaction were explained.
You can also contact us at contacto@urbanitae.com or call us on (+34) 911 23 25 22.
