Magellan

Madrid, Spain

SITG
The founders of EvoEstate invest their personal capital in this project.

450 000 €

Raised 450 000 €

15%Expected Return
16.74%Actual Return

12Months Expected Term
10Actual Months Term

Listed: 2020-01-20

Type: Variable-Interest Loan

Interest payment schedule: At Project Completion

Min. amount of investment - € 0

Project originated by:

Project updates

December 03, 2020

Update from the originator:

The originator is pleased to inform you that today the originator is going to proceed with the distribution and liquidation of the Magallanes Street Storerooms project and the vehicle company in which you invested in January 2020, CRUSMETA SPAIN SL (hereinafter "the company"). As the originator anticipated, the project has yielded an after-tax result of € 101,290, which means higher profitability than estimated, and in a shorter period of time. From that amount, it is necessary to deduct € 20,374 of input VAT that the company could recover, but with low probability, so it is prudent to discount it and if this refund is obtained, it would also be distributed in a few months, further improving profitability.

Consequently, a total of € 80,916 will be distributed as a dividend, which is equivalent to 19.04% of the invested capital, 9 months after the investment date. On that amount, the company will make the withholding of 19% according to current tax regulations.

The company is also dissolved and the invested capital is returned. This operation is subject to the payment of the Corporate Operations Tax that must be taxed in the Madrid Community, the company's headquarters. The rate is 1% of the capital, and the taxpayer is the shareholder (each investor). To make your work easier and that you do not have to settle it yourself, and as the originator has done in previous projects, the originator will take care of it through a trusted agency, with which we have achieved very good conditions. Its cost will be deducted from the total amount to be distributed.

To sum up, today the investors will receive 115.4% of the amount you invested in your wallet, with all taxes already discounted (19% retention and 1% Corporate Operations Tax).

The net IRR of the operation was 25%.

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EvoEstate comment

This is a first storage units investment on EvoEstate. These storage units will have a direct access from the street with the car and have a dedicated parking. Here you can find the listing of this property. Looking at alternatives on Idealista, one can find that most of the competing properties are either located in the basement or on the roof of the buildings, here you can find them with sales prices.

This development will not require development licence and also, different to most Urbanitae investments, this one will not be leveraged. Chamberi district is one of the estbalished districts of Madrid and the developer has already built over 600 storage units. Equity investments are highest risk, you can participate not only in the upside but also potentially in the downside.

Detail Descripton

INFORMATION ABOUT THIS PROJECT

From Urbanitae, we present a new project that consists of the development of a promotion of 46 storage rooms in Madrid.

The promotion is located in the Chamberí district, within the city of Madrid. Specifically, it is located on Calle Magallanes 30, next to the Glorieta de Quevedo, within the Arapiles neighborhood, with a high population density and with almost 25,000 people registered in the neighborhood itself.

PROJECT DESCRIPTION

The promoter of this opportunity is a company linked to Grupanxon . Grupanxon , is a business holding company with more than 20 years of experience in different areas, highlighting real estate development and integrating its own construction company.

In 2017, the company decided to create a new business line specialized in the promotion of parking spaces and storage rooms , finding a clear market niche in the center of large cities due to the shortage of this type of solutions. In less than three years, they have promoted and built more than 600 units between Malaga, Seville and Madrid.

The project has a capital gains strategy , which consists of an alliance with the promoter to develop the promotion of storage rooms. The promoters have signed a contract for the acquisition of a local of almost 400m2 that will be transformed into a complex enabled for 46 storage rooms.

The proposed promotion consists of 46 individual storage rooms , with direct access from the street. Currently the premises are enabled as a garage and the developer will be responsible for intervening the space to adapt it to the required use. The commercialization of the operation has already begun and there are signed pre-reservations. The final client are residents of the neighborhood who are looking for an additional space to their home, for the custody of household goods. There is also a potential for sales for investors seeking profitability via rentals.

Due to the nature of the operation, the works license is processed through a responsible declaration , therefore, it is not necessary to process a file with the administration. Subsequently, once the project is finished, supervision by the Administration of the works will be necessary. The work has a duration of 6 months and the project as a whole lasts for 12 months, including the deed process of the final units and liquidation of the promoter company.

STRUCTURE

The operation will be articulated through a company created by the promoter exclusively for the project: KRUSMETA SPAIN SL In this company, a capital increase will be made where the promoters will contribute 10% (€ 45,000) of the necessary capital and investors of Urbanitae 90% (€ 405,000) remaining. The storage of the storage rooms will be in charge of the developer and a real estate agency in the neighborhood.

WHY INVEST?

There are several reasons to invest in this project:

The works license is processed as a Responsible Declaration and therefore it is not necessary to wait for a favorable report with the administration for the start of the works.
The project will be promoted by a company linked to GRUPANXON , an entity with more than 600 storage rooms and garages promoted since 2017.
Promotion focused both on the profile of buyers in the area and investors looking for profitability via rentals.
The promoter of the work invests its own capital in it (10% on the necessary investment), which aligns the interests of all the agents involved in the investment.
The total estimated net return by the promoter is 15.00% in 12 months.

MARKET

A market study has been carried out to determine if the sales prices raised by the promoter are reasonable. Currently there are no more than 10 units available for sale of this type.

You can see more information in the documentation, Witnesses of Sale, where you will find a list of homes for sale in the area.

WHEN WILL I RECOVER THE INVESTED MONEY?

The estimated term of this project is 12 months .

February 2020 sale of the premises. Obtaining a new building license.
February -March 2020 start of works.
October 2020, end of works.
October-January 2021, deed of the storage rooms
First quarter 2021, liquidation of the company.

It is important to keep in mind that in any real estate development the terms may vary both upwards and downwards.

RISKS

All investments carry a risk. We detail the clearest risks we have identified for this project:

Increase in the deadlines foreseen in the project, due to construction delays.
Risk of complications after the visit of the administration technician for the validation of the works license.
Deviation of fixed costs associated with investment, unforeseen in construction.
Risk of not reaching the expected sales rates and consequently the delay in terms.
Risk of not getting the expected sales prices in the promoter's business plan.

Payment schedule

Date	Status	Late	Assignment date
29.03.2021	Paid	No	03 December 2020, 21:48

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FOR VARIABLE-INTEREST LOANS (EQUITY) PROJECTS THERE IS A 15% INCOME TAX WITHHOLDING. THERE IS NO INCOME TAX WITHHOLDING FOR FIXED-INTEREST PROJECTS. IF YOUR COUNTRY HAS DOUBLE TAXATION TREATY - YOU MAY NOT HAVE TO PAY INCOME TAX IN YOUR HOME COUNTRY. CONSULT WITH YOUR LOCAL TAX ADVISOR BEFORE MAKING ANY TAX DECISION.