Next Friday, 23 October at 12:00 (UTC+2), we will open the Villa Joy project for investment, a new debt opportunity aimed at refinancing part of the existing financing and completing construction of a luxury villa in Roca Llisa, Ibiza.
Tranche A amounts to €2,240,000, with a term of 24 months and a fixed interest rate of 10.5% per annum, simple interest, equivalent to a total return of 21% over the standard term. It also includes a minimum return equivalent to 12 months of interest.
- Investment opening: Friday, 23 October at 12:00 (UTC+2)
- Webinar: Thursday, 22 October at 16:00 (UTC+2)
- Loan amount: €2,240,000
- Term: 24 months + two possible six-month extensions
- Interest: 10.5% per annum, simple interest
A luxury villa with sea views
Villa Joy is a contemporary detached residence set on a plot of approximately 1,880 m².
The project features around 550 m² of living space — approximately 900 m² of built area including terraces and outdoor spaces — five bedrooms, an infinity pool, spacious terraces, home automation and high-end finishes.
The villa is located in Roca Llisa, one of Ibiza’s most exclusive residential areas. It is a low-density, gated development with controlled access and security, opposite Golf de Ibiza.
In addition to its sea views, the property is just a few minutes from Cala Olivera and enjoys good connections to Talamanca, Marina Botafoch, Ibiza Town and the airport.
Construction is already well under way
The project has all the necessary permits in place, and construction is under way.
By July 2026, the foundations, retaining walls and much of the structure had been completed, with construction approximately 30% complete.
Construction is expected to finish at the end of 2027. The first occupancy licence will then be processed, followed by the final marketing and sale completion phase during 2028.
The construction company is also retaining 30% of each certified progress payment, with payment deferred until the villa is sold and subordinated to Urbanitae’s loan.
A developer with its own capital committed
Before Urbanitae investors entered the project, the developer had contributed approximately €2.06 million in equity.
It is expected to contribute a further €600,000 before the second tranche is drawn down, bringing its total contribution to approximately €2.66 million, equivalent to 39% of the project’s total cost.
In addition, the developer undertakes to cover 100% of overhead costs and any unforeseen cost overruns not included in the business plan using its own funds.
10.5% annual interest and a minimum return of 12 months
The total loan facility may reach €3,315,000 and is structured in two tranches.
Tranche A, which is now opening for investment, amounts to €2,240,000 and will be used primarily to refinance existing debt, settle certain outstanding payments from the initial construction stages and cover the transaction’s structuring costs.
Its main terms are:
- Fixed interest: 10.5% per annum, simple interest.
- Term: 24 months.
- Extensions: two possible additional six-month periods.
- Total return over the standard term: 21%.
- Minimum return: 12 months of interest, equivalent to 10.5%.
- Principal and interest payments: at maturity.
The second tranche, of up to €1.075 million, will be used to finance outstanding construction costs and contingencies. Drawdowns will be made against construction progress certificates validated by an external Project Monitor.
Loan security
The transaction includes a first-ranking mortgage over the villa, with mortgage security covering 140% of the principal.
This is complemented by:
- A first-ranking pledge over the shares of the borrowing company.
- A first-ranking pledge over its bank accounts.
- A 100% cash sweep of the net proceeds from the sale, meaning all those funds will be allocated to repaying the loan principal and interest.
- Commitments from the developer to contribute capital to cover cost overruns and overhead costs.
- An irrevocable sale mandate, which may be activated at maturity or in the event of certain defaults, allowing the sale of the property to be pursued at a minimum price linked to its updated valuation.
The planned exit for investors will be through the sale of the villa.
A 44% LTV and a moderate LTC
The total loan represents approximately 44% of the villa’s projected sale price — LTV.
LTV compares the amount of debt with the value of the asset. In this case, the 44% ratio leaves a substantial margin between the financed amount and the home’s projected sale price. This buffer may provide flexibility when marketing the property if the asking price needs to be adjusted, because the project has room to sell below its initial target without the debt representing a high proportion of the property’s value.
Meanwhile, LTC — loan to cost — compares the loan with the project’s total cost. It stands at around 33% for Tranche A and would reach approximately 48% if the full financing facility were drawn down, reflecting the significant capital contribution made by the developer.
Why invest in Villa Joy?
We believe Villa Joy brings together several important features for a debt transaction: a luxury property in an established location in Ibiza, construction already under way with all permits granted, a significant equity contribution from the developer and a comprehensive security package.
The main highlights include:
- 10.5% annual simple interest.
- Total return of 21% over the standard term.
- Minimum return equivalent to 12 months of interest.
- First-ranking mortgage over the property.
- Construction approximately 30% complete, with no outstanding permitting risk.
- €2.66 million in capital committed by the developer, equivalent to 39% of the cost.
- Approximate 44% LTV based on the projected sale price.
- Target sale price of €7.55 million, below the average of the comparable properties analysed in €/m² terms.
Estimated timetable
The standard loan term is 24 months, with up to two possible six-month extensions.
The main planned milestones are:
- October 2026: Tranche A loan disbursement, refinancing of existing debt and continuation of construction.
- April 2027: expected drawdown of Tranche B, once the developer has contributed the additional capital.
- End of 2027: expected completion of construction.
- First half of 2028: obtaining the First Occupancy Licence and marketing the completed property.
- Second half of 2028: expected sale of the villa and repayment of the loan.
You can find full information about the transaction, its risks, security, market study and supporting documentation on the project page.
Do you have any questions about the project?
You can ask your questions during the webinar on Thursday, 22 October at 16:00 (UTC+2).
Villa Joy will open for investment on Friday, 23 October at 12:00 (UTC+2).
You can also email us at contacto@urbanitae.com or call us on (+34) 911 23 25 22.
