Next Tuesday, 7 July at 16:00 (UTC+2), we will open La Quinta 237 II for investment. This is the second tranche of a loan intended to finance the construction of a luxury villa in the La Quinta development, in Benahavís, one of the most exclusive residential enclaves on the Costa del Sol.
Tranche A of the project was financed by Urbanitae investors in June 2024. Now, tranche B will make it possible to complete construction of the villa, which is already 60% complete and has finished its structural works.
La Quinta 237 II will be Urbanitae’s 13th project in Benahavís – including different tranches – where we have already financed more than €27 million through the platform. Most of this activity has focused on transactions linked to the prime and luxury residential segment.
- 📅 Opening for investment: Tuesday, 7 July at 16:00 (UTC+2)
- 🎙 Project webinar: you can rewatch the La Quinta 237 webinar, held in June 2024.
A Frontline Golf Villa
The asset being financed is a luxury villa located on the front line of La Quinta golf course, with views of both the course and the sea.
The property has 878 sqm built on a 1,090 sqm plot. The project includes 5 bedrooms, 5 bathrooms, a garage for 3 vehicles, a private pool, a lift, cinema room, gym, outdoor barbecue area and fully equipped kitchen.
La Quinta is located in Benahavís, around 5 kilometres from San Pedro de Alcántara and 12 kilometres from the centre of Marbella. Its immediate surroundings include golf courses, beaches, natural areas, shops and high-end restaurants.
It is, therefore, a location fully aligned with demand for luxury housing on the Costa del Sol: privacy, views, proximity to Marbella and access to premium services.
A Project With Advanced Construction Progress
The project has a valid building permit. The villa was acquired by the developer in 2022 with the permit already granted. In August 2023, the Town Hall approved the execution project and the change of ownership of the permit.
Construction began at the end of 2024, after the financing of tranche A. The project is currently around 60% complete, with the structure already finished.
Tranche B will finance the remaining costs until construction is completed. It will also cover the updated kitchen budget, certain quality improvements and the partial settlement of accrued interest from tranche A.
Construction is expected to be completed by the first quarter of 2027. The sale of the asset and repayment of the loan are expected during the second quarter of 2027.
The Developer: Puro Properties
The developer of the project is Puro Properties, a Swedish joint venture formed by two investment funds, each with a 50% stake.
The company has been present in Spain since 2009 and has experience in marketing real estate projects on the Costa del Sol. It has also carried out development activity in Sweden, where it has successfully delivered more than twenty homes.
In the case of La Quinta 237, the developer has contributed approximately €1.78 million in equity to date. These funds have been used for the acquisition of the asset and general project costs.
Total Return of 8.44% in 9 Months
The transaction is structured as debt through a fixed-rate loan. The total loan amount is €4,390,000, fully financed by Urbanitae investors and structured in two tranches:
- Tranche A: €2,265,000, formalised in June 2024.
- Tranche B: €2,125,000, corresponding to this new opening.
The main characteristics of tranche B are:
- Amount: €2,125,000
- Interest rate: 11.25% simple annual interest
- Total return: 8.44%
- Term: 9 months
- Possible extension: 6 additional months
- Minimum return: equivalent to 7 months of interest
- Principal and interest payment: at maturity
The part of the loan allocated to construction will be drawn down through monthly certifications, always subject to a favourable report from the Project Monitor.
Loan Guarantees
The loan has a security package made up of:
- First-ranking mortgage over the underlying asset being financed.
- First-ranking pledge over the borrower’s shares.
- First-ranking control pledge, without intervention of funds, over the borrower’s current accounts.
- Sales mandate in favour of Urbanitae investors.
In addition, as in all debt projects, the Project Monitor will be involved. The Project Monitor will review work certifications, construction progress, potential deviations in timeline or cost, and approve the monthly loan drawdowns.
Exit Strategy
The expected exit for Urbanitae investors will take place through the sale of the villa once construction is completed.
As is usual with this type of luxury asset, marketing will take place once the project has reached a sufficient degree of progress. In this case, construction is already at an advanced stage, with 60% completed and the structure finished.
The business plan envisages completion of the works by the first quarter of 2027 and the sale of the asset during the second quarter of 2027. This would lead to the repayment of both tranche A and tranche B.
Why Invest in La Quinta 237 II
These are some of the main strengths of the transaction:
- Luxury villa in La Quinta, Benahavís, one of the prime residential locations on the Costa del Sol.
- Frontline golf, with views of La Quinta golf course and the sea.
- Construction 60% complete, with structural works already finished.
- Valid building permit and construction ongoing since the end of 2024.
- First-ranking mortgage over the underlying asset.
- Sales mandate in favour of Urbanitae investors.
- Fixed return of 11.25% simple annual interest, with a minimum return equivalent to 7 months of interest.
- Project Monitor to supervise certifications, construction progress and drawdowns.
Estimated Timeline
The base term of tranche B is 9 months, with maturity expected in April 2027. In addition, there is a possible additional extension of 6 months, until October 2027.
The main planned milestones are:
- July 2026: granting of tranche B by Urbanitae investors.
- By the first quarter of 2027: expected completion of construction works.
- Second quarter of 2027: sale of the asset and repayment of the loan granted by Urbanitae investors.
As with any real estate investment, timelines may vary depending on the actual progress of the works, commercialisation and market conditions.
Main Risks
The main risks identified are related to potential deviations in timeline, construction costs and sale schedule.
Regarding the timeline, the development phase has taken longer than expected. One reason was that the foundation and earthworks could not begin on the initially planned date because they coincided with a period of torrential rain in Marbella. To mitigate this risk, additional extensions have been approved, one of which has already been activated.
Regarding costs, contingencies of approximately €300,000 have already materialised. They were financed against tranche A after being consulted with and approved by the investors in that tranche. Given the project’s current stage of progress, no additional material contingencies are expected.
There is also a risk of delay in the sale of the property, which could affect the repayment schedule. However, the construction progress, the asset’s location and the sales mandate help reinforce the planned exit structure.
A New Luxury Residential Transaction in Benahavís
La Quinta 237 II offers the opportunity to participate in the second tranche of a debt transaction linked to a luxury villa in one of the most consolidated areas of the Costa del Sol prime market.
The combination of location, construction progress, first-ranking mortgage guarantee, sales mandate and fixed return of 11.25% simple annual interest reinforces the appeal of this new opportunity.
The opening for investment will take place on Tuesday, 7 July at 16:00 (UTC+2).
Do You Have Questions About the Project?
You can rewatch the La Quinta 237 webinar, held in June 2024, on the project page.
You can also write to us at contacto@urbanitae.com or call us on (+34) 911 23 25 22.
