Update from the developer:
• The Urban Development Agreement with Management is still pending. This time the delay in Management is due to the retirement of the technician who had the file. The architects informed the developer that the new technician has the documentation already and it seems that soon (the developer estimates January) the contract should be signed for this Agreement prior to obtaining the Building License.
• As of today, the project has 50% presales (11 units out of a total of 24).
From Urbanitae, we present a new project that consists of the development of a residential development of 30 new construction homes in Madrid.
The promotion is located in the Latin district, within the city of Madrid. It borders the districts of: Carabanchel, Arganzuela, Centro and Moncloa-Aravaca. At present, its main artery is the Extremadura road that borders directly with the Casa de Campo. It is an urban area, fully consolidated and with direct connection to the metropolitan infrastructure network (Metro and Bus).
The exact location of the plot is Paseo de Extremadura 177, near the intersection with Avenida de Portugal. The location has revaluation potential thanks to the announced underground works of the A-5 motorway, right on this section by the Madrid City Council. Therefore it would turn the area into a traffic-free space, and with direct access to the Casa de Campo, located just 400 meters from the site.
The promoter of this opportunity, PROMOCIONES BARRIO 2005 , is a Madrid real estate developer, where its managers and partners have more than 20 years of experience in the sector in the Community of Madrid - and with which we have previously worked on the project of Saint Sebastian of the kings-. Specifically, they have actively worked in municipalities such as Alcobendas, Madrid (Vallecas, Aravaca, Arturo Soria, Tetuán, Canillejas, Vicálvaro), Leganés, Torrejón, San Sebastián de los Reyes or Algete.
The project has a capital gains strategy , which consists of an alliance with the developer to develop housing development. The promoters already own the plot, which they will contribute to the investment vehicle already established for the development of the promotion.
The proposed promotion consists of 30 houses organized in two independent buildings, divided into two different land registry. The first building has its main elevation to Paseo de Extremadura and the second, to the back street, Hilario Sangrador. The construction of common areas is planned , including swimming pool, storage rooms for homes and two garage floors with 32 parking spaces. The houses are distributed in 1 house with 2 bedrooms, 16 houses with 1 bedroom and 13 studios. The commercialization of the houses is oriented both to first housing and to investors of housing for rent; It is scheduled to begin in late January 2020.
The developer already has a demolition license granted by the Board of the Latin District, since there is currently a construction to be demolished on the plot next to Paseo de Extremadura. The adjacent plot is free of building. The promoter plans to obtain the license for new construction by September 2020. The operation to obtain a license is being managed by the developer through the Planning Department of Madrid.
The operation will be structured through a company already constituted exclusively for this project by PROMOCIONES BARRIO 2005 , called PROMOCIONES BARRIO BETA SL In this company, a capital increase will be carried out where the developers will contribute the lot and part of the capital and the investors of Urbanitae the remaining capital necessary for the development of the promotion. The commercialization of the houses will be in charge of a local agent of the area specialized in commercializing new construction.
Investors will be shareholders in proportion to their contribution to the project, the company will be admitted via capital increase. PROMOTIONS BARRIO 2005 will not only be dedicated to the full management of the promotion, but also together with its partners, will hold 76% of the necessary capital (€ 1,900,000) for its development until obtaining the promotional credit, thanks to the solar contribution, so that they will also become majority partners of the investment vehicle. The remaining 24% (€ 600,000) will be invested through Urbanitae.
There are several reasons to invest in this project:
The developer expects to generate a total income of 6,371,000 euros with the sale of the 30 homes, which would mean a net gain for the estimated investor (after expenses and taxes) of around 31.5%.
There is currently no comparable market witness by location and type of housing. However, there are two small promotions in a nearby environment that already have a high percentage of presales. Although they do not have common areas, neither pool nor garage.
You can see more information in the documentation, Sales Witnesses, where you will find a list of new construction homes for sale in the area.
The estimated term of this project is 29 months .
It is important to keep in mind that in any real estate development the terms may vary both upwards and downwards.