Next Monday, 31 August at 12:00 h (UTC+2), we will open the La Algaba II project for investment, the second tranche of a loan aimed at partially financing the pending construction costs of a luxury residential development in Finca Cortesín, Casares, Málaga.
Tranche A of this loan was granted by Urbanitae investors in October 2025. Now, this second tranche will allow the financing of a development comprising 19 homes distributed across 5 blocks to continue, within one of the most exclusive residential complexes on the Costa del Sol.
The transaction is structured as debt, with a fixed interest rate of 10.75% simple annual interest, a term of 19 months and a guaranteed minimum return equivalent to 15 months of interest.
- Opening for investment: Monday, 31 August at 12:00 h (UTC+2)
- Project webinar: you can watch again the webinar for La Algaba, corresponding to the first tranche.
19 luxury homes in Finca Cortesín
La Algaba II forms part of a development of 19 homes located near the 5-star Finca Cortesín Hotel, in Casares, Málaga. The project consists of a residential complex of 5 blocks. All homes will have sea views, most will have a private swimming pool and all will have private terraces. In addition, the development will include a communal swimming pool with sea views. Residents will have access to the facilities of the 5-star Finca Cortesín Hotel, one of the most renowned luxury complexes in Europe, and will have internal cleaning, security and maintenance services. Currently, 8 of the 19 homes have been commercialised, equivalent to approximately 42% of the total.A benchmark location on the Costa del Sol
The asset is located within the Finca Cortesín complex, around five minutes by car from the hotel and the golf course. Casares combines a natural setting with proximity to destinations such as Marbella and Sotogrande. Finca Cortesín is located in this enclave, an international benchmark for luxury and exclusivity, with a five-star hotel, golf course and first-class services. The location within this estate provides security, privacy and a differentiating value for a high-net-worth international audience seeking a home in one of the most distinguished areas of the Mediterranean.The manager: Grupo Arua
The project manager is Grupo Arua, a company whose management team has more than 23 years of experience in real estate investment. In recent years, the group has focused its activity on the premium segment of the market, with projects aimed at high-net-worth clients. La Algaba is the natural continuation of Las Albercas, a development with very similar characteristics that was successfully developed and delivered by the manager. In addition, the group owns 11 single-family plots in Finca Cortesín, of which it has already developed and sold 4.Licence granted and works under way
The project is being developed on a 10,722 m² plot, acquired by the manager with its own funds. The development has a building licence granted in October 2025. Earthworks began in September 2025 and construction is currently underway, with progress close of more than 7%. The developer expects to complete the project within 24 months of construction from its start date.10.75% per annum and a minimum return of 13.44%
The transaction is structured as debt, through a fixed-rate loan. The total loan amounts to up to 20,500,000 euros and is structured in five tranches. Tranche A, amounting to 2,475,000 euros, was raised by Urbanitae investors and granted in October 2025. Tranche B amounts to up to 2,915,000 euros, of which 2,525,000 euros will be raised through Urbanitae investors and 390,000 euros will be contributed by external co-investors joining the existing debt. The main characteristics of tranche B are:- Urbanitae amount: 2,525,000 euros
- Interest rate: 10.75% simple annual interest
- Term: 19 months
- Possible extension: 6 additional months
- Guaranteed minimum return: 13.44%, equivalent to 15 months of interest
- Principal and interest payment: at maturity
Loan guarantees
The loan has a guarantee package consisting of:- First-ranking mortgage over the property being financed, with mortgage liability of 140%.
- First-ranking pledge over the bank accounts of the borrowing SPV allocated to the project.
- 100% cash sweep of the sale proceeds, whether total or partial, from the underlying collateral.
Exit strategy
The expected exit for Urbanitae investors will come through the income from the sale of the homes. According to the business plan, with the sale of 11 of the 19 units, the developer would have sufficient liquidity to fully amortise the loan. Marketing is being carried out directly through the Finca Cortesín sales office, which attracts clients who access the hotel facilities. The development currently has 8 homes sold or reserved.Why invest in the La Algaba II project
These are some of the main strengths of the transaction:- Development of 19 luxury homes within the Finca Cortesín estate, in Casares, Málaga.
- Access to the facilities of the 5-star Finca Cortesín Hotel, one of the most exclusive luxury complexes in Europe.
- First-ranking mortgage over the underlying asset, with mortgage liability of 140%.
- Works under way, with licence granted and earthworks started.
- 8 of the 19 homes commercialised, equivalent to 42% of the total.
- Fixed return of 10.75% simple annual interest, with a guaranteed minimum return of 13.44%.
- Manager with experience in Finca Cortesín, where it has already developed and sold luxury homes.
- 100% cash sweep of sale proceeds to amortise the loan.
Estimated timeline
The estimated term of tranche B is 19 months, with a possible 6-month extension. The main expected milestones are:- October 2025: granting of tranche A of the loan by Urbanitae investors.
- September 2026: granting of tranche B by Urbanitae investors and external co-investors.
- Last quarter of 2027: expected completion of construction works.
- First quarter of 2028: delivery of the homes and expected repayment of the loan to Urbanitae.
- Fourth quarter of 2028: estimated longstop date if the extension is applied.
