Invest in two luxury villas on the Costa del Sol

At Urbanitae, we continue to offer high-end real estate investment opportunities. This time, we present El Madroñal H, a debt project in Benahavís, Málaga, to finance the construction of two luxury villas. Funding will be available on our platform on Friday, March 28, at 12:00 PM (UTC+1).

This investment offers an annual return of 10.75% with an initial term of 24 months, with the possibility of a 12-month extension.

An Exclusive Location on the Costa del Sol

El Madroñal H involves the development of two luxury villas, Villa Hope and Villa Tiffany, on a 3,757 m² plot, with a total built area of 1,259 m². Each villa will feature six bedrooms, seven bathrooms, three guest toilets, and four kitchens, among other amenities.

The project is located in the prestigious El Madroñal residential complex in Benahavís, one of the most exclusive residential areas on the Costa del Sol. This enclave is known for its privacy, security, and proximity to renowned golf courses, such as La Quinta Golf & Country Club, and is less than 15 minutes from Marbella and Puerto Banús.

The design is intended to blend seamlessly with the natural surroundings, offering privacy and exclusivity in one of the most sought-after areas of the Costa del Sol.

Investment Structure and Conditions

The project developer is Inmolux Group, a business holding founded in 2008, specializing in luxury real estate on the Costa del Sol. The group has developed 10 projects in Marbella’s most prestigious areas and currently has seven projects under construction and five in development. They have already delivered luxury villas in Golden Mile, Sierra Blanca, Cascada de Camoján, Nueva Andalucía, Zagaleta, and Guadalmina Baja.

The project developer is committing a total capital of €6,169,916 (35.7%), including an initial equity contribution of €4,481,614. Of this amount, €2,536,095 comes from the acquisition and construction of Villa Paradise, a luxury home built in 2024 in Paraíso Alto, which will serve as additional collateral for the loan. Additionally, the developer commits to providing €1,688,302 in additional equity throughout the project.

Urbanitae’s loan considers two scenarios:

• Base scenario: A loan of up to €11.12 million, committed in three tranches. The loan will finance construction work and general project costs, with the developer committing €3.4 million from the sale of the additional collateral. €5 million of this loan will be funded by Urbanitae investors, with the remaining amount covered by external investors.
• Alternative scenario: If the developer does not commit the agreed €3.4 million equity from the sale of Villa Paradise, the loan amount will increase to €14.825 million, also structured in three tranches.

Both plots have had building permits since 2023. Construction began in November 2024, with completion expected in Q4 2026, and the sale of the villas projected for Q2 2027.

The asset’s commercialization will be managed by the developer and exclusively by Solvilla, a real estate agency. The developer’s experience in the area suggests that these properties are typically sold within 6-9 months after construction is completed.

Loan Conditions

• Total Loan Amount (Tranche A): €3,635,000
• Annual Return: 10.75% (21.5% total over 24 months)
• Loan Term: 24 months, with the possibility of a 12-month extension
• Collateral:
  • First-rank mortgage on the two plots for development.
  • First-rank mortgage on Villa Paradise, a newly built home valued at €4.62 million.
  • First-rank pledge on the borrowing company’s shares.
  • First-rank pledge on the company’s bank accounts.
  • Irrevocable sale power over the main asset at 75% of the appraisal value in month 30.
  • Irrevocable sale power over Villa Paradise at 80% of the appraisal value in month 13.