Case Study: One Luxembourg Securitisation Platform, Three Capital Markets, One Marbella Development
A Spanish developer planning a luxury residential project in Marbella needed capital from three very different investor groups: traditional private banking clients, cryptocurrency holders and digital-native technology investors. Kuts & Co designed and coordinated a Luxembourg securitisation platform with three segregated compartments, each built for one of those audiences, and introduced investors who subscribed for approximately 60% of the initially issued bond volume.
The challenge: one development, three investor worlds
The developer intended to acquire a substantial plot of land in Marbella and develop luxury villas for sale to individual purchasers. The financing had to cover the whole lifecycle: land acquisition, planning and permits, site preparation, construction phases and, finally, the sale of the villas.
The investors the developer could reach did not share a common infrastructure:
Private banking investors. Private clients and family offices with accounts at established Swiss private banks, who preferred conventional bonds with Swiss ISINs held through their existing custody arrangements.
Cryptocurrency investors. Holders of digital assets on exchanges, brokers and specialised platforms, who wanted to subscribe with cryptocurrency rather than only through conventional fiat channels.
Digital-native investors. Entrepreneurs and technology professionals who preferred tokenised financial instruments and wanted to subscribe with either cryptocurrency or fiat currency.
The task was not simply to raise capital. It was to connect three distinct financial ecosystems to one development without treating them as economically or operationally identical.
The solution: one issuer, three segregated compartments
Kuts & Co established a Luxembourg securitisation company in the form of a société à responsabilité limitée (S.à r.l.), structured as a securitisation undertaking under the Law of 22 March 2004 with three legally segregated compartments.
Each compartment financed the same Marbella project, but through a different instrument, investor channel and investment strategy:
Compartment 1
Investors: Private banking clients and family offices
Instrument: Traditional bonds with Swiss ISINs
Subscription: Conventional banking and securities channels
Underlying exposure: Debt financing only
Maturity: Earlier scheduled maturity
Compartment 2
Investors: Cryptocurrency investors
Instrument: Bonds subscribed with cryptocurrency
Subscription: Cryptocurrency, through a structured settlement arrangement
Underlying exposure: Debt financing and equity investment
Maturity: Separate maturity
Compartment 3
Investors: Digital-native and technology investors
Instrument: Tokenised bonds
Subscription: Fiat or cryptocurrency
Underlying exposure: Equity investment
Maturity: Separate maturity
Each compartment was supported by its own paying-agent or settlement arrangement, adapted to its investor audience. The compartments had separate issuance terms, maturities and economic exposures, with compartment-level assets and liabilities as set out in the governing documentation and applicable law.
Compartments are segregated pools of assets and liabilities within one issuer. They are not separate legal entities. That distinction shaped the whole structure.
The Spanish project company
A wholly owned Spanish subsidiary of the Luxembourg securitisation company acts as the project execution vehicle. It acquires the land, coordinates planning and permits, engages contractors, manages the development budget and construction phases, sells the completed villas or plots and manages project-level cash flows.
The Luxembourg company owns the Spanish subsidiary. The compartments' different exposures — debt for Compartment 1, debt and equity for Compartment 2, equity for Compartment 3 — arise under the issuance and financing documents rather than through separate shareholdings.
Capital deployed in line with the development plan
Kuts & Co worked with the developer on a detailed development plan and budget, with financing staged against project milestones. The first bond issuances raised the capital needed for land acquisition and the initial development phase. The developer did not need to raise the entire projected construction budget at the outset; subsequent financing was structured around the plan and budget.
Security for the debt financing
The debt financing is supported by security arrangements involving the development land and relevant project cash flows or receivables, as provided for in the Spanish security documentation. The arrangements contemplate phased releases: as individual plots or villas are sold, sale proceeds are applied in accordance with the financing and security documents, security over the sold assets is released on the agreed conditions, and the remaining collateral continues to support the outstanding secured obligations. The project is expected to repay debt financing before distributing residual equity proceeds.
How Kuts & Co supported the transaction
Kuts & Co acted as the central structuring and implementation coordinator, working with independent firms for legal, audit, banking, paying-agency and digital-asset services:
Structuring: the Luxembourg securitisation architecture, the issuer and its three compartments, and distinct investment strategies.
Capital markets: coordination of three bond issuance formats and terms.
Financial infrastructure: three paying-agent and settlement arrangements for conventional, crypto-funded and tokenised subscriptions.
Spanish implementation: the project company, financing and corporate documentation, and the security package.
Project coordination: the development financing plan, milestones and the Luxembourg and Spanish advisers and service providers.
Investor introductions: introductions from the Kuts & Co professional network.
The outcome
The platform was established, the initial bonds were issued and placed, and financing was deployed into the Spanish project in line with each compartment's strategy. Approximately 60% of the initially issued bond volume was subscribed by investors introduced through the Kuts & Co network. That figure refers to the initial issuance only, not to the total development budget.
The developer received both the financing infrastructure and a substantial contribution towards the initial capital needed to launch the project.
Key takeaways
One securitisation company can serve several investor communities, provided each compartment has its own instrument, terms and settlement infrastructure.
Crypto-funded and tokenised channels sit inside the same legal, AML/KYC and securities framework as traditional bonds; they change how investors subscribe, not the rules that apply.
Staged financing tied to a development plan lets a developer start with land and early works rather than raising the full construction budget up front.
Clear separation between corporate ownership and compartment-level exposures is essential to an accurate structure.
To discuss a comparable structure, see our Luxembourg securitisation services or download the case study presentation.
Client and transaction details have been anonymised. General information only. This case study is not an offer of securities, an offering memorandum, or legal, tax or investment advice. Securitisation and digital-asset activities remain subject to applicable law, AML/KYC and regulatory requirements. Compartment segregation is a statutory protection, not a guarantee against all risks.
