Project update

Update from the originator:

Due to the restrictions caused by COVID-19 the project has been facing delays. The estimate for the delays might be 9 months or more. However, the originator does not expect changes in total return.

Update from the developer:

• The Urban Development Agreement with Management is still pending. This time the delay in Management is due to the retirement of the technician who had the file. The architects informed the developer that the new technician has the documentation already and it seems that soon (the developer estimates January) the contract should be signed for this Agreement prior to obtaining the Building License.

• As of today, the project has 50% presales (11 units out of a total of 24).

Update from the developer:

• Once the deed of Capital Increase to 2,500,000 had been made, it was filed in the Mercantile Registry, which is already registered without incident and in the developer's power.
• The Urbonistic Agreement with Gerencio is still pending. After the declaration of the State of Alorma and the slowing down of the process, the developer has finally requested documentation and the developer has already presented it to you. Therefore, we anticipate its signature in a short time.
• The state prevented the developer from continuing work, coinciding with the State of Alarm in these summer months. Meeting with the real estate agency that carries out the marketing, they told the developer that September has started with requests for information with potential clients and has already closed two other presales these days, making a total of 8 pre-sales. Given the demand for homes with 2 and 3 bedrooms, the promotion is being projected with 24 units done.
• Regarding the Soterromiento project of the Paseo de Extremodura by the Madrid City Council, the developer informs you that this seems to me to be a reality. The start of the works is scheduled for February 2022, and the work is scheduled to take 9 months. The developer is convinced that this intervention will add value to their promotion since it will allow the developer to connect the promotion directly with the Casa de Campo in Madrid.

Update for June:

Madrid, June 19, 2020
Dear investors, We want to thank you for the investment made in this project and the trust placed in it. From PROMOCIONES BARRIO 2005 we are delighted to be responsible for the management of the project, being the second project we have carried out with URBANITAE investors.
On June 11, 2020, the financing planned for this project was completed (€ 2,500,000), when the capital increase that gave you entry into society as URBANITAE investors was signed before a notary.
Through this note, we want to inform you of the current situation of the housing development located in Extremadura 177. Madrid.
• The site is already owned by PROMOCIONES BARRIO BETA, and is registered at its name in the Land Registry. The corresponding demolition license was obtained, and the demolition work on the existing buildings has already been completed. The demolition license was used to carry out a large part of the emptying of the site, leaving it practically at the foundation level (piloting). It is planned to sign the Urban Development Agreement with Management in the coming weeks, after which we will present the project (already drawn up) to request a building license. We have started presales, and we are having good reception. As of today we already have 6 presales, and due to the interest in requesting information, we hope to continue signing new reservations in the coming months. Taking advantage of this time until the signing of the Agreement, we have given alternatives in the project, increasing the number of 2-bedroom homes, since we are having many requests for this type. That if, always maintaining the final sale price of the promotion initially planned.
Finally, to inform you, it seems that the Extremadura underground project is continuing, with the evident benefit that this could give to our promotion. We will continue to inform you promptly of the progress we make, Sincerely, David Jiménez Suárez