|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 you a new project that consists of the development of a new-build residential development comprising 20 semi-detached houses with 3 and 4 bedrooms in Puerto Real (Cádiz) . All homes include a garage space. The promotion will also have garden areas and a community pool . The average price per home is € 235,000. Marketing has already started and the developer has monetary reserves in 7 of the 20 homes that make up the project (35%).
The development is located in the Casines area, Luchadores por la Libertad street , in the center of the municipality , just 2 km from the Town Hall and the Puerto Real train station. Overlooking the bay of Cádiz, the project is located less than 10 minutes from Playa de la Cachucha, the Puerto Real University Hospital and the Villanueva Golf & Croquet course.
Puerto Real is the ninth most populated municipality of the forty-five that make up the province of Cádiz, with more than 41,500 inhabitants. Located in the west of the province, Puerto Real is less than 15 km from the city of Cádiz. In addition, the municipality benefits from an extensive transport network that allows direct access by highway to the airports of Jerez de la Frontera (less than 25 minutes via the A-4) and Seville (less than 1 hour and 30 minutes through the A-4). Finally, Puerto Real has a train station that establishes connections with the main municipalities of the province.
The promoter of this opportunity, INICIATIVAS INMOBILIARIAS , is a business group linked to the real estate sector, with more than 50 years of experience, and is a leader in the promotion of homes in Andalusia (more than 12,000 homes delivered). The company's activities include the construction and marketing of most of the promotions they manage. In addition, they perform urban planning and land management services.
The group has 5 associated companies and is present in more than 20 municipalities. Urbanitae has previously worked with Real Estate Initiatives on the Rota projects, which have already been completed, and Jerez, which is in progress. Within the documentation area you can find more information about the promoter .
The project has a capital gains strategy, which consists of an alliance with the developer for the acquisition of a plot of land in Puerto Real, Cádiz, where the 20 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: MARINA CUSTOM HOMES, SL
INICIATIVAS INMOBILIARIAS has formalized an exclusive deposit contract on the land that is the object of the promotion. The developer plans to apply for the building license in December 2021, and following the deadlines set by the City Council, expects to obtain its authorization in the second quarter of 2022. The works will begin immediately after obtaining the building license and signing. of the promoter mortgage loan.
Regarding commercialization, the promoter has monetary reserves in 7 of the 20 units that make up the promotion (35%). The purchase and sale contracts corresponding to said reserves will be formalized after the concession of the building license. The commercialization of the remaining units will be carried out by INICIATIVAS INMOBILIARIAS .
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 used for the acquisition of the site and the expenses necessary for the start of the project. The vehicle company plans to resort to bank financing for the development of the work (promoter mortgage loan).
The promoter will be dedicated to the integral management of the development and will be an investor in the project, contributing c.20% of the total investment capital. In the Marina Homes project INICIATIVAS INMOBILIARIAS will not carry out the execution of the work, which will be contracted to an external builder. At the moment the promoter is in negotiations to close the budget for the work.
There are several reasons to invest in this project:
The promoter expects to generate a total net profit of 297,997 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% of his investment in an approximate period of 24 months .
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 35% of the reserved homes.
There is information available on the market within the documentation, " Sales Witnesses" , where you will find a list of homes and storage rooms for sale in the area.
WHEN WILL I RECOVER THE MONEY INVESTED?
The estimated term of this project is 24 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 that have been 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 receive financing when at least 90 percent of the financing objective has been reached, once the participation in the project that the platform itself may have has been discounted. 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 or remunerate the funds received, Urbanitae will not return their investment to investors.
|Total Purchase||€ 690,000||€ 268 / m 2|
|Solar Cost||€ 690,000||€ 268 / m 2|
|General Costs||€ 3,323,364||€ 1,293 / m 2|
|Construction Cost||€ 2,280,656||€ 887 / m 2|
|Other Costs||€ 1,042,708||€ 405 / m 2|
|Urbanitae Commission (s / VAT)||€ 52,000||€ 20 / m 2|
|Financial costs||€ 120,151||€ 46 / m 2|
|Total investment||€ 4,291,133||€ 1,670 / m 2|
|External financing (Promoter Credit)||€ 3,291,133||€ 1,281 / m 2|
|Promoter contribution||€ 200,000||€ 77 / m 2|
|Urbanitae investors contribution||€ 800,000||€ 311 / m 2|
|Total revenue||€ 4,483,512||€ 1,745 / m 2|
|Sale of 20 homes||€ 4,694,130||€ 1,827 / m 2|
|Marketing and Advertising||€ 105,618||€ 41 / m 2|
|Corporate Tax Forecast||€ 105,000||€ 40 / m 2|
|Total profitability||30 %|
Iniciativas Inmobiliarias is a company linked to the development sector, leaders in Western Andalusia. It has more than 50 years of experience and more than 12,000 homes delivered. In the last 5 years they have sold more than 1,750 homes.