|Criteria||From a+ to d||Project rating|
Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
We present a new project that consists of the development of a new construction development in San Antonio (Ibiza). It consists of 39 homes with 2 and 3 bedrooms distributed over three floors, all of them with a garage and storage room . The development will also have large common areas, including a community pool and garden areas . The promotion is aimed at first-time clients in Ibiza , and marketing with foreign clients is not ruled out.
The development is located in San Antonio , on the island of Ibiza, 20 kilometers from the airport and 15 kilometers from the town of Ibiza. In particular, the development is located on calle Gavina, 2, next to the bay and Es Pouet beach.
San Antonio is a municipality located in the west of the island and connected to the town of Ibiza and the airport through the E-20 and EI-800 highways. With more than 27,000 inhabitants, San Antonio is the fourth most populated municipality on the island, behind Ibiza, Santa Eulalia del Río and San José.
The promoter of this opportunity, CONSTRUCCIONES Y OBRAS DAMP E , is a company with more than 30 years of experience in the real estate sector. Since its foundation, the group has been involved in the rehabilitation, construction and development of more than 3,000 homes, mainly in the Community of Madrid and the Balearic Islands.
In addition to the extensive experience that the company accredits in the rehabilitation and construction of homes, CONSTRUCCIONES Y OBRAS DAMPE has also been involved in the development of hotel assets, offices, residences for the elderly and shopping centers, having participated in projects with the help of the main players in the real estate sector at the national level, including Pryconsa, Vivenio, Ballesol, Fidere or the Rafael hotel chain, among others.
The project has a capital gains strategy, which consists of an alliance with the developer for the cancellation of the charges that weigh on a plot in San Antonio, Ibiza, where the 39 homes will be developed. The contributions of Urbanitae investors will be delivered to the promoter via capital increase to the vehicle company that develops the project: LONDON BRIGDE CORPORATE, SL
The project has a building license granted . The works have already begun and are in the foundation phase. The promoter is in negotiations with several banks for the formalization of a promoter mortgage loan, which will allow the construction of the project to continue .
The commercialization of the development has already started and the developer has 2 monetary reserves and 10 pre-reservations of the 39 homes that make up the development (31%), driven by the shortage of housing supply for a first residence on the island.
The operation will be structured via a capital increase , where both the promoter and Urbanitae investors will make a capital contribution to the company vehicle for the operation. Said contribution will be destined to the cancellation of the charges that currently weigh on the site, already owned by the developer, and to bear the costs of execution of the work until the entry of the bank financing . The operation plans to use bank financing for the development of the work (promoter mortgage loan).
CONSTRUCCIONES Y OBRAS DAMPE will be dedicated to the integral management of the promotion, construction, and commercialization. He will also be an investor in the project, contributing c.38% of the total investment capital.
There are several reasons to invest in this project:
The promoter expects to generate a total net profit of 3,288,508 euros with the sale of the promotion, which would mean a net profit for the Urbanitae investor estimated (after expenses and taxes) of around 30% in an approximate period of 18 months.
A capital distribution has been agreed with the Promoter that encourages it to optimize the return on invested capital . The capital contributed by both Urbanitae investors (c.62% of the capital) and by the promoter (c.38% of the capital) will be remunerated, in accordance with the estimates of the Business Plan, at 18% per year, net of Corporation Tax . The return of Urbanitae investors will also be preferred , so that it will occupy the first position in the cascade of payments of the free cash flow of the project. The additional capital gain generated by the project on said profitability will be distributed with the promoter under a capital structure that can be consulted within the documentation "Economic summary ”.
A market study has been carried out to determine if the sales prices raised by the developer are reasonable. The promoter accredits experience in the development of promotions with similar characteristics in the environment. The promotion has 31% of the reserved units.
There is information available on the market within the documentation, "Sales witnesses", where you will find a list of homes for sale in the area.
WHEN WILL I RECOVER THE MONEY INVESTED?
The estimated term of this project is 18 months .
It is important to bear in mind that in any real estate development the terms can vary both upwards and downwards .
All investments carry risk. We detail the clearest risks we have identified for this project:
Warnings and Risks
Urbanitae Real Estate Platform PFP (Urbanitae) does not hold the status of an investment services company, or a credit institution and is not attached to any investment guarantee fund or deposit guarantee fund. The information published by Urbanitae Real Estate Platform PFP on its Website is for informational purposes only and in no case may it be considered as recommendations to investors.
The participatory financing projects published by Urbanitae on its Website are not subject to authorization or supervision by the National Securities Market Commission or by the Bank of Spain, therefore, all the information provided by the promoter in relation to the projects has not been reviewed by them.
The estimated return on the investment is net to the investor. In any case, the withholdings established by tax regulations will be applied to the income obtained, and additionally, a 0.3% corresponding to the commission of the payment entity Lemonway will be deducted.
Urbanitae expressly informs that, in the event of non-compliance with the total investment volume of the project, the term for the capture may be exceeded by up to 25%, maintaining the same investment conditions. Likewise, the project may be financed by Urbanitae when at least 90 percent of the financing objective has been reached, after discounting the participation in the project that the platform itself may have. All of this in accordance with the provisions of Article 69 of Law 5/2015 on the Promotion of Business Financing.
The investment in the projects published on this Website may entail certain risks, such as the risk of total or partial loss of the capital invested, of not obtaining the expected monetary return or lack of liquidity. Therefore, we advise investors to only invest an amount that they are willing to lose and suggest that they diversify their investments to minimize and mitigate potential risks. In the event that the promoter is unable to return.
|Total Purchase||€ 4,637,554||€ 1,343 / m 2|
|Solar Cost||€ 4,579,554||€ 1,327 / m 2|
|Legal Costs||€ 58,000||€ 16 / m 2|
|General Costs||€ 7,440,636||€ 2,156 / m 2|
|Construction Cost||€ 5,749,518||€ 1,666 / m 2|
|Other Costs||€ 1,691,118||€ 490 / m 2|
|Urbanitae Commission (s / VAT)||€ 248,000||€ 71 / m 2|
|Financial costs||€ 210,000||€ 60 / m 2|
|Total investment||€ 13,327,777||€ 3,862 / m 2|
|External financing (Promoter Credit)||€ 6,873,223||€ 1,991 / m 2|
|Promoter contribution||€ 2,454,554||€ 711 / m 2|
|Urbanitae investors contribution||€ 4,000,000||€ 1,159 / m 2|
|Total revenue||€ 13,370,144||€ 3,874 / m 2|
|Sale of 39 homes||€ 15,331,730||€ 4,442 / m 2|
|Marketing and Advertising||€ 791,587||€ 229 / m 2|
|Corporate Tax Forecast||€ 1,170,000||€ 339 / m 2|
|Total benefit||€ 3,288,508||€ 952 / m 2|
|Urbanitae Investors Profit (preferential initial distribution - 30%)||€ 1,200,000||€ 347 / m 2|
|Promoter Profit (initial distribution - 30%)||€ 736,366||€ 213 / m 2|
|Excess Profit||€ 1,352,142||€ 391 / m 2|
|Total profitability||30 %|
CONSTRUCCIONES Y OBRAS DAMPE , the promoter of this opportunity, is a company with more than 30 years of experience in the real estate sector. Since its foundation, the group has been involved in the rehabilitation, construction and development of more than 3,000 homes, mainly in the Community of Madrid and the Balearic Islands.