We are announcing two new project repayments at Urbanitae! In total, we have now completed more than 80 projects, and more than 55,000 investors have received their money back with an average return of 12% IRR.
This time, we are talking about the Gate 3 and Gate 3 II projects, financed by Urbanitae investors in January and July 2024, which have been settled with the full repayment of the capital invested and the payment of accrued interest.
Both transactions corresponded to two tranches of the same developer loan intended to finance the development of three luxury villas in Benahavís, one of the most exclusive residential markets on the Costa del Sol.
With this final repayment, the projects close with a total return of 22.38% and an IRR of 9.78% in the case of Gate 3, and with a total return of 16.81% and an IRR of 9.97% in the case of Gate 3 II.
What Were Gate 3 and Gate 3 II?
Gate 3 was a real estate debt project to finance the development of three luxury villas in Benahavís, Málaga. Subsequently, Gate 3 II made it possible to complete the financing of the transaction through a second tranche of the loan.
Specifically, the underlying asset consisted of three independent high-end villas, each featuring five bedrooms, a master bedroom with a walk-in wardrobe and en-suite bathroom, an entertainment room, a private gym, a wine cellar, a swimming pool, a solarium area, and equipped outdoor spaces.
Regarding the execution, the project was developed by Cogitari Homes, a group specialised in the development of luxury villas and high-end apartments. By the time financing was secured, the manager had already acquired the land with its own funds, obtained the building permit, and commenced construction work.
To mitigate risk, the transaction was structured through a 10% fixed-rate annual loan. This setup was backed by a first-ranking mortgage guarantee over the registered properties comprising the project, alongside a pledge over both the company’s shares and its bank accounts.
Financing in Two Tranches
The total financing of the project was structured in several tranches. Urbanitae investors participated in the first two:
- Gate 3, corresponding to the first tranche, for an amount of 2,815,000 euros.
- Gate 3 II, corresponding to the second tranche, for an amount of 2,185,000 euros.
In both cases, the purpose of the loan was to finance the costs associated with the development of the villas until their sale. The expected exit for investors would come through the sale of the units or, as ultimately occurred, through the refinancing of the loan.
Project Evolution
The execution of the works progressed positively throughout the life of the loan. During 2025, the villas reached their main technical milestones, including completion of the works, obtaining the final works certificates and the granting of the first occupancy licences.
Villa A was sold and transferred by deed in September 2025. This transaction made it possible to carry out a first partial repayment of the loan, with the payment of interest accrued up to that date and the amortisation of part of the principal.
In the following months, Villas B and C were completed, with final works certificates and first occupancy licences granted, and remained in the active marketing phase, with commercial visits and negotiations with potential buyers.
As the sale of the two remaining villas had not been formalised before the ordinary maturity date, the contractually agreed extension was activated. Finally, the entry of an alternative lender made it possible to settle the loan in an orderly manner without exhausting the maximum extension period.
Final Result of Gate 3
Gate 3, formalised on 12 January 2024, provided for an annual interest rate of 10%, an initial term of 24 months and an additional 6-month extension contractually agreed.
Prior to this final repayment, in September 2025 a first partial settlement was carried out as a result of the sale of Villa A, through which approximately 23.8% of the principal was repaid together with the interest accrued up to that date.
With this final settlement, the full outstanding principal is repaid, along with the interest accrued on that principal until the effective cancellation of the loan.
The final figures for Gate 3 are as follows:
- Estimated term: 29 months
- Final term: 29 months
- Weighted term: 26 months
- Final total return: 22.38%
- Final IRR: 9.78%
Final Result of Gate 3 II
Gate 3 II corresponded to the second tranche of the financing and was formalised through an addendum on 19 July 2024. This tranche also provided for an annual interest rate of 10%, with an initial term of 18 months and an additional 6-month extension contractually agreed.
As in the first tranche, the sale of Villa A made it possible to carry out a partial repayment in September 2025, with amortisation of part of the principal and payment of accrued interest.
With this final settlement, the repayment of 100% of the capital invested is also completed, together with the corresponding interest.
The final figures for Gate 3 II are as follows:
- Estimated term: 23 months
- Final term: 23 months
- Weighted term: 20 months
- Final total return: 16.81%
- Final IRR: 9.97%
An Orderly Closing Through Refinancing
Gate 3 and Gate 3 II close with the full repayment of the capital contributed by investors and the payment of accrued interest in both tranches. The project has evolved positively from a construction perspective: the three villas are completed and have the necessary licences.
On the commercial side, the sale of Villa A enabled a first partial repayment, while the subsequent refinancing of the loan facilitated the full settlement of the transaction.
The closing of both tranches highlights the importance of structuring debt transactions with solid guarantees, active monitoring and contractual mechanisms that make it possible to manage the evolution of projects within a framework defined from the outset.
