Bulevar 360, or How to Achieve a 12.7% IRR in Málaga
Two more repayments at Urbanitae! We are pleased to announce that we have repaid Bulevar 360 and Bulevar 360 II, two tranches of the same developer loan granted for the development of a residential project in Málaga.
With this repayment, investors have recovered 100% of the invested capital, together with the agreed ordinary interest and the late-payment interest accrued during the final days prior to closing.
What were Bulevar 360 and Bulevar 360 II?
Both projects were part of a mortgage-backed developer loan, structured in two independent tranches at different dates but linked to the same underlying asset.
The purpose of the financing was to support the development of a residential project in Málaga, one of the most dynamic markets in Andalusia. Specifically, Bulevar 360 aims to develop 165 homes in Málaga’s Cortijo Merino sector, in a residential development with around 17,000 m² of buildable area. The homes range from one to four bedrooms and include a fitted kitchen, parking space, and storage room. They also feature large terraces, swimming pools, green areas, and children’s playgrounds across more than 7,500 m².
The main loan terms were a fixed annual interest rate of 13% and an initial term of 12 months for Bulevar 360 and 11 months for Bulevar 360 II, with the option of a six-month extension.
In both cases, the extension was included in the contract from the outset.
Bulevar 360: Final result
- Estimated term: 18 months (12 initial months + 6-month contractual extension)
- Final term: 18 months + 9 days of delay
The initial maturity occurred as planned and the contractual extension was activated. Repayment was formalized a few days after the extended maturity date due to a slight delay in the formalization of the developer loan, which generated 9 additional days of late-payment interest.
- Final return (CoC): 20.04%
- IRR achieved: 12.69%
The result is in line with the initial estimates and within the contractually planned term.
Bulevar 360 II: Final result
- Estimated term: 17 months (11 initial months + 6-month contractual extension)
- Final term: 17 months + 9 days of delay
As with the first tranche, the contractually planned extension was activated and repayment took place a few days after the extended maturity date, including the corresponding late-payment interest.
- Final return (CoC): 18.59%
- IRR achieved: 12.79%
In this case as well, the project closed within the contractually planned timeframe and with a return in line with expectations (the IRR is calculated from the date the loan was formalized).
Project continuity
The transaction financed through these two tranches continues in the Cortijo Merino project, which is currently underway, demonstrating the natural progression of the development and the staged financing strategy.
Bulevar 360 and Bulevar 360 II reinforce the role of Urbanitae’s alternative financing as an effective tool for property development. At the same time, they underscore the quality of the opportunities offered to investors: in this case, exposure to debt transactions with a clear structure, a defined timetable, and contractual mechanisms that allow extensions to be managed within the planned framework.
