INVESTMENT ANALYSIS AND RATING ASSIGNMENT Altea

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Purpose

The purpose of this document is none other than the analysis of the investment project,

ALTEA, and the assignment of a credit rating to it.

In this project, which will last 1 year and 6 months, it is expected to obtain a financing of

600.000 € for a total cost of 1.138.958,49 €. The loan application has been divided into three

tranches in which 300.000 € will be raised in the first and 150.000 € in the other two.

Nature and scope of our services

Analysis of the investment Project base on the information provided about the Project,

evaluating the main parameters of the Business Plan and contrasting it with market

information and assigning a rating of the Project risk through a standardized system to assist

in making investment decisions (scoring).

The scope of our work has been based on unaudited information provided by HOUSERS,

which receives the information from the Promoter. In this sense, we must mention that we

have not carried out any independent verification, audit, review or evaluation of the

accounting, fiscal, legal, labor or environmental situation of the Investment Project that is the

object of our analysis. We have assumed that the information provided is complete and

accurate and, therefore, the possible risks that may exist and have a possible effect have not

been taken into consideration in the analysis work we have carried out.

In carrying out our work, we have used information obtained from public sources and we

assume that such information is reliable, although we can not guarantee the absence of

possible errors in the information used.

The information in the Business Plan is totally and exclusively the responsibility of the Project

Promoter, although for the purposes of our work, we have globally verified its coherence,

although we point out that its use should not be interpreted as an opinion on it and,

therefore, we do not accept any responsibility for the existence of possible errors that could

have an impact on the results of our work.

Independence

PROYECTOS CIGA states that the information contained in this document is independent and

does not constitute a recommendation for the investment to be made.

This investment analysis report is for the sole and exclusive use of HOUSERS and registered

users of the participatory financing platform in order to have an independent document on

the investment project and is issued with the understanding that it will not be used for any

other purpose than that indicated, without the prior consent of PROYECTOS CIGA.

Confidenciality

PROYECTOS CIGA authorizes the publication of this investment analysis on the HOUSERS

corporate website www.housers.com.

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Description of the project

The ALTEA project consists of the construction of a block of 6 houses, on the Pont

del Montcau seaside, located 500 meters from the beach. The houses have one or

two bedrooms, one or two bathrooms and include parking and storage.

The work will have a duration of one year and six months and will be financed by

the contribution of own funds of 350.000 € and by HOUSERS investors with an

amount of 600.000 € at an interest of 8%.

The building occupies the entire site and has a total constructed area for housing

use of 548,21 m2, as well as 270,34 m2 of garage and storage rooms, which

represents a total of 818,55 m2 built.

These homes are located in Altea, a Spanish municipality in the province of Alicante

(Valencian Community) located in the Marina Baja region, on the Mediterranean

coast, south of Calpe and north of Benidorm.

Altea is made up of 8 kilometers of coastline, more than a dozen beaches (three of

them distinguished with a blue flag), it has two first-class marinas and a 9-hole golf

course.

It also has a charming old town, crowned by the Church of Nuestra Señora del

Consuelo, internationally known as "the Dome of the Mediterranean."

Ubicación

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Plan de Negocio

The summary of the Business Plan for the Puerta de Oriente investment project is as

follows (data in euros):

The summary of the main classifications of expenditure on the Project's investment

and its financing is as follows:

Source: Promoters of the project, in thousands of euros €

Rentabilidad del proyecto

After analyzing the Business Plan, the cash flows to be obtained on a quarterly basis

are the following (data in euros):

Q1 Q2 Q3 Q4 Q5 Q6 Q7

-96.359 65.635 -82.415 106.724 -45.621 52.036 259.019

With these cash flows, the profitability of the project is in the following magnitudes:

IRR ROI

13,67% 23,61%

in € TotalUp to

todayQ1 Q2 Q3 Q4 Q5 Q6 Q7

Revenues 1.355.910 8.182 92.230 56.933 39.899 0 5.750 98.878 1.054.038

Acquisition Costs 134.679 134.679 0 0 0 0 0 0 0

Construction Costs 733.968 45.915 200.011 102.133 85.866 81.263 85.119 133.662 0

Administration Costs 84.244 5.694 31.244 9.461 9.461 9.461 9.461 9.461 0

Marketing Costs 30.000 0 0 0 0 0 0 0 30.000

EBIT 373.019 -178.106 -139.024 -54.660 -55.428 -90.724 -88.830 -44.245 1.024.038

Financial Costs 114.000 0 58.309 11.138 11.138 11.138 11.138 11.138 0

EBT 259.019 -178.106 -197.333 -65.799 -66.566 -101.863 -99.968 -55.384 1.024.038

18%

29%

53%

SOURCES OF FUNDING

Promoter

Presales

HOUSERS

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Leverage

The total amount of external financing for the project will be obtained through the

HOUSERS collective loan. The first tranche of financing, corresponding to 300.000 €,

represents 63,70% of the current appraisal value of the construction and 30,52% of

its production cost.

*It doesn’t include financial costs

Market comparison

The sale prices are in a range between 148.500 € and 394.839 € each home. The

resulting average price is 2.135 € / m2. This figure is 9.52% below the market

average for homes with the same characteristics a few streets away in the

municipality of Altea.

Localización Price m2 €/m2

Altea Pueblo, Altea 175.000 85 2.058,82 Altea Pueblo, Altea 219.000 75 2.920,00 Altea Pueblo, Altea 175.000 78 2.243,59 Altea Pueblo, Altea 184.000 78 2.358,97 Altea Pueblo, Altea 250.000 100 2.500,00 Altea Pueblo, Altea 210.000 90 2.333,33 Altea Pueblo, Altea 195.000 78 2.500,00 Altea Pueblo, Altea 149.900 87 1.722,99 Altea Pueblo, Altea 187.000 78 2.397,44 Altea Pueblo, Altea 220.000 65 3.384,62 Altea Pueblo, Altea 175.000 92 1.902,17 Altea Pueblo, Altea 168.000 80 2.100,00 Altea Pueblo, Altea 159.000 67 2.373,13 Altea Pueblo, Altea 122.000 70 1.742,86 Altea Pueblo, Altea 165.000 65 2.538,46

Average Price 2.335,27

Av. price promotion 2.135,08 Source: Web Idealista, Own análisis of the main real estate agencies (Engel&Volkers, Remax,Funny House etc)

300.000

470.935

Loan

Value

Loan to value

300.000

1.016.138

Loan

Cost

Loan to cost

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Promoter

ALTEA I L'AIGUA INMOBILIARIA SL, with CIF B42519637 registered office at País

Valencià street, 8 03610 Petrer-Alicante.

It is a company linked to the development of real estate development on the Costa

Blanca and Vinalopó.

Its main areas of activity are urban development, both public and private initiative,

architecture projects, residential complexes, interior design, rehabilitation, etc.

To date, they have more than twenty projects developed.

The project will be financed through the contribution of own funds of 206.899 €,

and by HOUSERS investors with an amount of 600.000 € at an annual interest of 8%.

The project has a mortgage guarantee and the promoters have the necessary

licenses to carry out the work.

Financial statements of the promoter

Balance Sheet (data in euros)

2020 2019 2018

Non current assets 0,00 0,00 0,00

Current assets 170.973,62 170.973,62 173.473,62

Total Assets 170.974 170.973,62 173.473,62

Equity 170.973,62 170.973,62 173.473,62

Non current liabilities 0,00 0,00 0,00

Current liabilities 0,00 0,00 0,00

Equity and Liabilities 170.973,62 170.973,62 173.473,62

Income statement (data in euros)

2020 2019 2018

Revenues 49.176,90 0,00 0,00

Operating costs 46.067,83 2.500,00 17.466,38

EBITDA 3.109,07 0,00 0,00

Amortizations 0,00 0,00 0,00

EBIT 3.109,07 -2.500,00 -17.466,38

Financial result -389,71 0,00 0,00

EBT 2.719,36 -2.500,00 -17.466,38

Taxes 0,00 0,00 0,00

Net income 2.719,36 -2.500,00 -17.466,38

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Project rating

Scoring is an evaluation system whose purpose is to rate the investment project.

This allows the investor to make decisions about the company's risk taking as a

reference a note that indicates the level of risk exposure. This qualification of the

investment project is based on two analyzes.

The first to be evaluated will be the promoter's background by rating different

financial ratios.

The second to be evaluated will correspond to the analysis of this project, its

Business Plan and its profitability based on factors that indicate its suitability.

The rating considers 3 levels of investment quality:

- Investments with optimal and high quality: AAA (optimal), AA and A (High)

- Investments with a good (BBB) and satisfactory (BB y B) quality

- Investments with a minimal (CCC) and questionable (CC y C) quality)

Score

Equivalence

AAA

Optimal AA

Very high A

High BBB

Good BB

Very satisfactory B

Satisfactory CCC

Minimal CC

Questionable C

Very questionable

Analysis of the promoter

This first analysis examines a series of parameters related to the company that runs

the promotion, after studing its Annual Accounts, giving specific weight to each one.

According to the results of the analysis carried out, we have given each metric a

grade according to the situation of the company.

Variables Score C CC CCC B BB BBB A AA AAA

Company evolution AA

Promoter experience AAA

No. Promoter projects AAA

Liquidity ratio AAA

Debt ratio AAA

ROE C

ROA CC

Profitability ratio CC

The promoter rating is A. It is given a weight of 40% on the global rating.

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Project analysis

The second type of analysis evaluates the most relevant aspects for the investor

when evaluating this particular investment, giving a specific weight to each one.

According to the result of the analysis carried out, we have rated each metric with a

grade according to the situation of the promotion itself.

Variables Score C CC CCC B BB BBB A AA AAA

IRR B

ROI AAA

Licence AAA

Transactions AAA

Sale price €/m2 Country BBB

Sale price €/m2 Region AAA

Sale price €/m2 Province AA

Average price. vs district BBB

City (residents) C

% Formalized sales B

Loan to Value CCC

Loan to Cost AAA

Land ownership AAA

The project’s grade is A. It is given a weight of 60% in the overall rating.

Global Rating

The overall rating of the investment project is determined by assigning a weight of

40% to the rating of the Promoter and the remaining 60% to the rating of the

Project, which have been indicated as A and A, respectively and, therefore, we have

assigned the project to investment of ALTEA a global rating of:

C CC CCC B BB BBB A AA AAA

The ALTEA project obtained a grade AA (very high) in the global rating,

the project has been increased by one point due to the existence of a

mortgage guarantee.

In Madrid, June 4, 2021.

Juan José Alvado Martín

PARTNER DIRECTOR

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C/ Embajadores, 187, 28045 - Madrid

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