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This week, we are returning to Ibiza to offer you a new investment opportunity that will open for financing on Friday, October 13th at 12:00 PM.
The Ibiza Sky Villas project involves the development of a promotion comprising 21 residential units with a garage and commercial space in Ibiza. Specifically, the promotion is located in Marina de Botafoch, one of the most exclusive areas on the island, with numerous entertainment options.
For this project, we have partnered with URBANIA, a developer that is new to our platform but has over 20 years of experience in developing assets in Spain, as well as in other countries such as Brazil and Portugal.
Mortgage guarantee on the property that makes up the project
This operation will be structured as debt, where investors on Urbanitae will provide a fixed-rate loan of 13.5% per annum to the company that will develop the project. This loan will be used to finance 43% of the total acquisition cost of the asset. To cover the remaining portion, the developer plans to secure bank financing. Furthermore, they have expressed their interest in financing the project with a loan that will cover 100% of the costs associated with the project’s development.
URBANIA expects to obtain the building permit within an approximate timeframe of 16 months. During this time, we anticipate marketing the residential units and obtaining the pre-sales necessary before the developer’s mortgage loan enters. Additionally, the project has a mortgage guarantee on the property that makes up the project.
As for the loan repayment guarantees, a first-ranking mortgage is established on the asset, with a liability of 150% of the total loan amount. A first-ranking pledge is also established on the shares of the vehicle company holding the asset.
In this video, Diego Bestard, CEO of Urbanitae, explain the key aspects of the project.
27% return in 24 months
The project offers a return of 27% over 24 months, with an option for a 6-month extension. The loan interest will be paid along with the principal at maturity.
In the fourth quarter of 2023, the loan is expected to be granted by Urbanitae investors to the developer, and the asset will be acquired. During the first quarter of 2024, the application for the building permit is estimated. In the first quarter of 2025, the necessary pre-sales are expected to be obtained for the entry of the developer’s loan. Finally, during the third quarter of 2025, the license is expected to be obtained, the developer’s loan granted, and the repayment of the loan from Urbanitae investors.
As always, you can contact us at contacto@urbanitae.com or by phone at (+34) 911 23 25 22.
