Update from the developer:
• Work license.
Arqueosur, the company contracted for the archaeological study, performs the fieldwork satisfactorily, presenting and processing the Archaeological Intervention Report before the Andalusian Government.
The developer awaits, at this time, the Resolution of the Ministry of Culture of the Andalusian Board that is delivered to the Archeology Section of the Department of Licensing and Urban Protection of the City Council of Malaga. Once the resolution of the Urban Planning Board arrives, the developer's License will go through the next Government Commission for its final signature, without being conditioned by the Archaeological study. The developer hopes to have all these administrative procedures completed by the end of this month of February.
Parallel to the License, the different work budgets are being finished. Part of the micropile system that will be used in the foundation has been changed at the request of the bidding companies and the developer's architects. Due to the data the developer has right now, the developer will not suffer significant deviations in the amount of the work with the budgeted.
After making the first sale, to a Russian citizen, the promoter is in contact with colleagues and friends of this client who are interested, but the developer cannot move forward until they travel to Malaga. These clients already have investments in Costa del Sol. The developer is also working on the complete sale of the five remaining homes. A sales mandate has recently been signed to an investment advisory firm that works with these types of clients, specializing in the Nordic and Chinese markets. As soon as the perimeter closures are opened in Andalusia, the developer has arranged to visit the area.
On the other hand, the GILMAR real estate office in Malaga continues with the relevant commercial actions, conditioned by the current situation. The reports are stating that apart from individual clients they are presenting the product to investment groups.
Banks - Financing. The company has a current account with Banco Santander, an entity that is still interested in financing the project but does not request more than 50% of sales to start the study (3-4 homes). However, if the building were to be sold with the 30% contribution, the developer would need bank financing The interested investor group has been asked for 40%.
A new document containing pictures of the progress has been added.
The sales price of the units is rather optimistic at 3400 EUR per square meter. (with common zones included in meters. Without the zones price per square meter is 4400 euros)- See document Testigos de venta.
Carreteria street divides two neighborhoods: Centro Historico where average sales prices for object 1 and 2 are at 5000 EUR per square meter, and San Felipe neighborhood (Object 3, where average sales price is 2500 EUR per square meter)
Even though our object is more closer to Centro Historico, but technically it is in San Felipe. San Felipe average price per square meter is less than 3000 euros (for both old and new construction)
It's imporant to note, that there is no building license granted yet.
And finally, other competing properties:
These two new construction offers are very close to the one offered by Urbanitae and the sales prices is lower than the one we have in sales projections.
From Urbanitae, we present a new project that consists of the development of a residential development of 6 new construction homes on a plot next to Carretería street, belonging to the downtown district of the city of Malaga.
Over the past few years, the province of Malaga has become the engine of Andalusia and currently occupies the fourth place in economic activity nationwide. The growth forecasts remain very positive for the coming years, supported by tourism and the arrival of new technology companies in the area, due to excellent communications (AVE, airport, naval transport, highways ...), the quality of Life and very competitive prices.
The promoter of this opportunity is URBANA HOME REAL ESTATE, a real estate developer specializing in the Spanish Levante area. The manager of the promoter, has developed its activity mainly in the province of Almeria. Currently, they are in the process of expanding to other areas such as Malaga and the Balearic Islands. Within Almería its business base is in El Almerimar, belonging to El Ejido.
The project has a capital gains strategy, which consists of an alliance with the developer to develop a residential building in the central district of Malaga. The developer has signed a purchase option contract on the plot, which expires in April 2020.
The project is located on Postigo de Arance 8, just 20 meters from Carreterias Street. From the most immediate environment, it is worth highlighting the Tribune of the Poor, Marquis de Larios, the Plaza de la Constitución, the Plaza de la Merced or the Carmen Thyssen Museum in Malaga. The area is currently undergoing a process of comprehensive renovation of its buildings, with pedestrianization of streets or consolidation of public squares. Tourism is the main actor in the neighborhood and the economic environment revolves around this phenomenon.
The proposed promotion consists of 6 homes, structured in 2 studios, 1 2-bedroom apartment, 1 1-bedroom apartment and 2 duplex penthouses. Each house has approximately 50 m2. The complex is distributed ground floor plus 2 floors above ground, attic and under cover.
The operation will be structured through a company already constituted exclusively for this project by the developer, called URBANA HOME REAL ESTATE S.L. In said company, a capital increase will be carried out where both the developers and the Urbanitae investors will contribute the necessary capital for the purchase of the plot and cover the initial costs until obtaining the promotional credit that finances the work. The company will be the promoter vehicle that will contract the work to an independent construction company. The commercialization of the houses, is planned to be carried out through a real estate agency. Given the type of housing and its location, the developer expects to present the homes to patrimonial investors who can buy the entire building to exploit it on a tourist basis.
Investors will be shareholders in proportion to their contribution to the project, the company will be entered via capital increase. Regarding the current project, the architects with whom the promoter works, plan to present the preliminary project to the City of Malaga during the month of November, in order to obtain the major work license within a period of 6-8 months. The demolition will not be necessary, since currently there is no construction on the site.
The promoter will be dedicated to the integral management of the promotion and will also be an investor of the project, contributing 30% of the total capital of the investment.
There are several reasons to invest in this project:
Investment opportunity in a new construction promotion project.
The estimated net profitability by the promoter is 34.03% in 24 months.
The project is promoted by a relevant actor within the residential development of the area. (See his career and past promotions in the attached documentation).
Promotion in a residential area of high investment demand for tourist exploitation.
The promoter of the work invests its own capital in it, which aligns the interests of all the agents involved in the investment.
The developer estimates that the sale of homes will generate a total income of 1,434,000 euros, which would mean a net gain for the investor (after expenses and taxes) of 34.04%.
A market study has been carried out to determine if the sales prices raised by the promoter are reasonable. You can see more information in the documentation, Sales Witnesses, where you will find a list of homes for sale in the area.
There are currently several promotions underway, in the area. All have a pre-sale level of over 50% and are in the process of obtaining a license