Hills 14 III: Debt at 9.50% Annual Interest to Complete a Luxury Villa in Benahavís

Next Monday, 24 August at 12:00 (UTC+2), we will open the Hills 14 III project for investment. This is the third tranche of a loan intended to partially finance the construction of a luxury villa and a private sports complex in El Herrojo, Benahavís, Málaga.

Tranche A was raised in May 2025 to finance the initial construction costs and certain general costs of the project. Subsequently, Tranche B was formalised in February 2026 to continue financing the construction works. Now, Tranche C will allow progress to continue towards completion of the asset, which already has a certified construction progress level of more than 67%.

The transaction is structured as debt, with a fixed interest rate of 9.50% simple annual interest, a term of 12 months and a minimum return equivalent to 9 months of interest.

• Opening for investment: Monday, 24 August at 12:00 (UTC+2)

• Project webinar: you can rewatch the Hills 14 webinar.

A luxury villa with a private sports complex

Hills 14 III forms part of the development of a detached single-family home called The Hills 14, located in the El Herrojo residential community in Benahavís.

The villa is distributed across three levels on a 2,374 sqm plot and will have a total built area of 2,250 sqm. The project includes an outdoor and indoor swimming pool, garage, garden, sea views and a lower floor dedicated to leisure spaces, with a wine cellar, bar, cinema, games room, gym and spa.

In addition, a private sports club will be developed next to the home on an adjoining 10,982 sqm plot, with a tennis court, padel court, mini-football, volleyball and crossfit area. This combination makes the asset a unique product within the luxury residential segment on the Costa del Sol.

An exclusive location in El Herrojo

The asset is located in El Herrojo, one of the benchmark residential communities in Benahavís.

The area stands out for its privacy, natural surroundings and good connections with Marbella, Puerto Banús and other locations on the Costa del Sol. The home will be surrounded by landscaped areas and natural vegetation, with views of the sea and the La Quinta Golf & Country Club golf course.

Benahavís has consolidated its position as one of the most exclusive residential markets in the province of Málaga, with a product offering aimed at high-net-worth national and international buyers.

The manager: Cogitari Homes

The manager of the project is Cogitari Homes, a real estate group specialised in the design and development of exclusive residential projects, mainly on the Costa del Sol.

The company was founded by Lars Christensen, who has more than 30 years of experience in the real estate sector between Denmark and Spain. Cogitari Homes has developed more than 15 projects and has experience in luxury homes in Marbella, Benahavís and Málaga.

Hills 14 is the fifth project that Urbanitae has financed together with Cogitari Homes, after Villa Alcalá, Gate 3, Pinares de San Antón and Alcalá 4 Golf.

Construction progress above 67%

The project has a building permit and construction began in December 2024. As of the launch date of this new tranche, certified construction progress exceeds 67%.

This point is especially relevant in a development of these characteristics. The phases with the greatest technical uncertainty – earthworks, foundations and the initial part of the structure – have already been completed. Therefore, Tranche C investors enter at a more advanced execution stage.

In addition, the works are supervised by a Project Monitor, who reviews certifications, construction progress, possible deviations in timing and cost, and approves the monthly loan drawdowns.

9.50% per year and a 12-month term

The transaction is structured as debt, through a fixed-rate loan.

The total loan amounts to up to €8,515,000 and is structured in three tranches:

• Tranche A: up to €2,400,000, formalised in June 2025.

• Tranche B: €2,710,000, formalised in February 2026, of which €2,600,000 was committed by Urbanitae investors and €110,000 by external co-investors.

• Tranche C: up to €3,405,000, of which €2,400,000 will be raised through Urbanitae and €1,105,000 will be contributed by external co-investors.

The main characteristics of Tranche C are:

• Urbanitae amount: €2,400,000

• Interest rate: 9.50% simple annual interest

• Term: 12 months

• Possible extension: 6 additional months

• Minimum return: equivalent to 9 months of interest

• Payment of principal and interest: at maturity

The part of the loan intended to finance construction works will be drawn down through monthly certifications, always subject to a favourable report from the Project Monitor.

Loan guarantees

The loan has a guarantee package made up of:

• First-ranking mortgage over the properties being financed, with mortgage liability of 150%.

• First-ranking pledge over the shares of the borrowing SPV.

• First-ranking pledge over the bank accounts of the borrowing SPV.

• Irrevocable power of sale in favour of Urbanitae investors, for an amount of 75% of the current valuation, exercisable in month 36.

These guarantees are in addition to the already certified construction progress and the manager’s experience in developing luxury residential assets on the Costa del Sol.

Exit strategy

The expected exit for Urbanitae investors will take place through the sale of the villa.

The commercialisation of the asset will be carried out by a leading real estate agency on the Costa del Sol, on an exclusive basis. As is usual with this type of asset, the commercialisation period begins when construction has reached a sufficient level of progress for potential buyers to better assess the final product.

The plan envisages the completion of construction between the first and second quarters of 2027, and the sale of the villa and repayment of the loan in the fourth quarter of 2027.