Project update

Last update from the originator:

"Negotiations are ongoing to finalize the agreement with the new project manager. We will keep you informed as soon as we have details of the agreement and the new timeline.

as of right now There are no significant developments in the negotiation process. In parallel, Urbanitae has commissioned an appraisal to determine the current land value and analyze all the project's possibilities."

Update from the originator: 

"

Dear Investors,

We are writing to you with a very important update on the status of the Botánico Homes project, as

well as the next steps we will be taking immediately. After many months of intense work and

complex four-way negotiations - with the original developer, potential new partners, financial

institutions and delegated developers - we are pleased to announce that we have managed to reach a

definitive solution for the project.

Grupo Artal has signed its formal exit from the project, which will allow a new partner to take over its position in

the company. This milestone, key to unblocking the operation, opens the door to a new stage in which the new

development plan will be activated immediately.

Thanks to this breakthrough:

• The entry of a first level and prestigious delegated developer will be formalized, who will lead the

development hand in hand with Urbanitae.

• The commercial mandate and sales plan will be activated with a pricing strategy adjusted to

the new market context.

• We already have the backing of one of the main financial institutions in the country, which will

allow us to finance both the urbanization and the development of the project.

• We have also secured the integral urbanization of the surrounding area, including both plots, so

that we will not depend on the outgoing developer to carry out our works.

We would like to reiterate that this result has only been possible thanks to the continuous effort, direct

involvement and total commitment of the entire Urbanitae team. It has been a long and extremely complex

process, in which we have given our all find a viable and solid solution for the project. We know that the

delay accumulated in this project has been significant and far beyond what we all wished for. However, within

the negative, there is a clearly positive aspect that we must highlight: during these years, the real estate

market in the area has evolved favorably, with a significant rise in prices. This now allows us to propose

sales prices significantly higher than initially expected, which, consequently, should translate into a very solid

profitability for investors.

Next steps: Investor Meeting

As part of the process, we will proceed to convene an Investors' Meeting in order to approve:

1. The resignation of the current Director of the company and the waiver of the right of first

refusal by the current investors, thus allowing the entry of the new partner that will replace

Grupo Artal.

2. Once this point has been approved and the operation has been formalized, the entire project

will be put into operation immediately.

Additionally, once the project is in full execution, we will study alternative solutions to offer a possible exit to

the project's investors, providing liquidity under fair, structured and consensual conditions.

We thank you, once , for your patience, understanding and trust throughout this process. Our goal remains

the same: to work tirelessly so that this project, and all those we finance on our platform, will succeed.

Sincerely yours,

Urbanitae Team"

Update from the originator: 

" a preliminary agreement has been reached to make a change of manager through the figure of a delegated promoter. In addition, a new partner will be incorporated to replace the current project manager. During this month, negotiations have continued with all parties involved to define and specify the aspects necessary to formalize the agreement."

Update from the originator: 
The result of the analysis of one of the interested parties is favourable, although the best strategy for structuring the agreement is being studied

The conclusions of the analysis of the project's viability, by one of the interested promoters, are positive both in terms of the technical and urban aspects, as well as in the commercial aspect. This promoter expresses his interest in managing the project, although a detailed study of the structuring of the potential agreement is necessary. It is recalled that the current manager has already signed the agreement to sell his shares to shorten the management of the possible purchase if the interested promoter's proposal is confirmed. Once we have a formal proposal, it will be presented to the partners. In any case, we remember that there is another interested promoter, although he continues to study alternatives for structuring the operation and another promoter interested in co-managing the project. Commercially, no news has been reported, maintaining the 106 reservations of the 143 available homes.

Update from the originator: 

"In the last month, progress has been made in negotiations with the second developer interested in purchasing the current developer's share. The developer is in the process of finalising its analysis, with a favourable result so far. In parallel, the drafting of the potential agreement for the sale of shares with the commitment to pay for the development to lift the urban development burden has begun. It is expected that during the month of June, the analysis will be completed in order to subsequently present a proposal to the partners for their consideration. On the other hand, it is recalled that there is another developer interested, although it continues to study alternatives for the structuring of the operation, taking into account the urban development situation of the project and another developer interested in co-managing the project. At a commercial level, there are a total of 106 reservations made out of the 143 available homes."

Update from the originator: 

Work continues with the developer on the two avenues announced. During the month of December the originator have been working with a possible interested party in the purchase of the developer's participation in the project for its subsequent development together with the investors. This option is under study and the terms of the possible agreement are not yet available. It should be recalled that there is already a developer interested in co-managing the project together with the original developer, this being the second way of working to unblock the project. As for marketing, a total of 106 reservations have been formalized out of the 143 homes available.

Target closing date: 1Q 2024

Update from the originator:

The project is suffering delays because the banks have tightened the conditions for construction loans. The developer is putting every effort to get the loan, but he has not succeeded yet.

The originator anticipates there will be significant delays on this project (6-12 months).