Next Friday, 2 October at 12:00 h (UTC+2), we will open the Caleta de Fuste project for investment, a new debt opportunity to partially finance the construction of 68 homes in Caleta de Fuste, Fuerteventura.
Tranche A has an amount of 2,920,000 euros, a term of 24 months and a fixed interest rate of 11.75% annual simple interest, representing a total return of 23.50%. It also includes a minimum return equivalent to 15 months of interest, that is, 14.69%.
The development is already underway: it has a building permit and phase 2 shows an approximate progress level of 40%.
- Opening for investment: Friday, 2 October at 12:00 h (UTC+2)
- Term: 24 months + possible 6-month extension
- Ticket: 2,920,000 euros
- Interest: 11.75% annual simple interest
68 homes in Caleta de Fuste
The project partially finances the pending construction costs of phase 2 of a residential development comprising 121 homes located in the El Castillo urbanisation, in Caleta de Fuste.
This second phase consists of 68 multifamily homes with 1 to 3 bedrooms, distributed across several blocks and with a swimming pool, landscaped communal areas and parking spaces.
The development is being built on a 21,185 sqm plot. Its phase 1, comprising 53 homes, is already completed and in the process of being handed over to its buyers.
The asset is located around 2 kilometres from Castillo beach, 4 kilometres from Fuerteventura Golf Club, 8 kilometres from the airport and 14 kilometres from Puerto del Rosario.
Construction 40% complete
Phase 2 has a valid building permit and is approximately 40% complete.
The developer estimates a term of between 13 and 14 months to complete construction. The loan funds will be used to finance the remaining construction costs and will be drawn down through monthly certifications, subject to approval by an independent Project Monitor.
In addition, the first phase provides a direct reference for the same product, executed by the same manager: its 53 homes were built in 14 months and sold in full within 12 months.
The manager and alignment of interests
The project is being developed by Nordal Antigua, a company owned 50% by Alza Real Estate and 50% by Nordestada.
Alza has a track record of almost 40 years, more than 8,000 homes delivered and around 2,500 currently under construction. It also participates directly in the technical execution of the development.
The manager has already committed around 5.9 million euros to the project. Approximately 2 million correspond to equity contributed in cash and another 3.9 million to works already carried out by the group’s construction company and not yet collected.
The collection of those certifications is deferred until the sale of the homes and subordinated to the full repayment of the Urbanitae loan, thereby reinforcing the alignment of interests.
11.75% annual interest and a total return of 23.50%
The total financing may reach 12,215,000 euros, structured in four tranches.
Caleta de Fuste corresponds to tranche A, with the following conditions:
- Amount: 2,920,000 euros.
- Fixed interest: 11.75% annual simple interest.
- Term: 24 months.
- Possible extension: 6 months.
- Total return: 23.50%.
- Minimum return: 15 months of interest, equivalent to 14.69%.
- Payment of principal and interest: at maturity.
Early repayment will be possible at any time, while respecting that minimum return.
Loan guarantees
The operation includes a first-ranking mortgage over the phase 2 homes, with mortgage liability of 140% of the principal.
The guarantee package also includes:
- First-ranking pledge over the shares of the borrower company.
- First-ranking pledge over its bank accounts.
- Cash sweep of 100% of the net income obtained from the sale of the homes, meaning that all net income from sales will be used to repay the loan principal and interest.
- Subordination of any additional financing to the Urbanitae loan.
The expected exit for investors will take place precisely through the sale of the homes. According to the project estimates, the sale of approximately 39 of the 68 units would generate sufficient liquidity to fully repay the loan and its interest.
Why invest in Caleta de Fuste
Among the main highlights of the project are:
- Construction 40% complete and valid building permit.
- First-ranking mortgage over the financed homes.
- Interest of 11.75% annual simple interest, with a total return of 23.50%.
- Minimum return of 14.69%, equivalent to 15 months of interest.
- 5.9 million euros already committed by the manager, between capital and works executed.
- Cash sweep of 100% of the net income from sales, allocated in full to repaying the loan.
- A phase 1 already completed and sold 100% in 12 months, serving as a direct reference for costs, timelines and commercial absorption.
Estimated timeline
The ordinary term of tranche A is 24 months, with a possible six-month extension.
The current forecast envisages continuing construction work during 2026 and 2027, with completion of construction in the fourth quarter of 2027. Delivery of the homes and repayment of the loan are expected in the first quarter of 2028.
You can consult the project page for all information on the operation, risks, legal documentation, due diligences and key investment data.
Do you have questions about the project?
The opening for investment of Caleta de Fuste will be on Friday, 2 October at 12:00 h (UTC+2).
You can ask your questions in the webinar on Thursday, 1 October at 12:00 (UTC+2).
You can also write to us at contacto@urbanitae.com or call us on (+34) 911 23 25 22.
