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Urbanitae has successfully repaid the Las Lagunas de Mijas project, a debt operation on the Costa del Sol that enabled more than 1,700 investors to recover their capital plus interest. In total, €4.4 million has been distributed.
Project Results
Here is a summary of the project’s closing figures:
- Estimated term: 18 months
- Final term: 15 months
- Estimated CoC: 15.75%
- Final CoC: 13.9%
- Estimated IRR: 10.5%
- Final IRR: 10.3%
As explained in the project presentation, the reference term for the estimated return was set at 18 months, since the contract included an initial 12-month period with an option to extend for an additional 6 months. Therefore, although the project closed in 15 months, this does not represent an improvement over the initial forecast.
What Did the Project Involve?
The Las Lagunas de Mijas project consisted of granting a loan to the developer Nuovit to finance part of the land acquisition and associated urban planning expenses in one of the most dynamic residential areas of the Costa del Sol.
The operation was conceived as an initial step toward the development of a residential complex in a strategic location, well connected to Málaga, Marbella, and the rest of the coast. In this type of debt operation, Urbanitae investors participate in an early stage of the project, taking on limited risk thanks to the guarantees in place.
A Loan with Guarantees
Investors were backed by a solid security structure:
- First-rank mortgage on the asset.
- Pledge of the shares of the landholding company.
- Control pledge over the bank accounts of said company.
Málaga: A Hub for Investment
This was Urbanitae’s second project in the municipality of Mijas, where we have now financed three operations. The area is one of the most active real estate markets on the Costa del Sol, with strong housing demand.
Overall, in the province of Málaga alone, Urbanitae has financed more than €145 million across over 50 operations, contributing to the development of over 2,100 homes. These figures confirm Málaga’s strategic importance within the Spanish residential market and the confidence investors place in projects developed in the region.
A Positive Outcome
With this repayment, Urbanitae adds another project successfully completed in line with expectations, strengthening investor confidence in our real estate financing model.
The case of Las Lagunas de Mijas confirms that real estate crowdfunding is an effective tool for channeling investment into solid projects, with guarantees and attractive returns.
