Magellan

 Equity
Project listed: 20.01.2020
Madrid,
Spain
15%
Annual yield
Term: 12 months
Interest payment schedule:
At Project Completion
Interest payments
29.03.2021
Pending

Project updates

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August 28, 2020

Update from the developer:

Dear investors,

The developer is pleased to inform you that the works to adapt the storage rooms are already 100% finished from August 20, 2020. The developer is currently waiting for the corresponding municipal technician to certify the executed works, in order to begin with the deed of the final units. The developer hopes to start around September 15 with the final process of the sale in the notary. Therefore, the developer is pleased to inform you that delivery times have been advanced substantially and we hope to close the project once we achieve a deed of all of the storage rooms. The units are currently all sold by private contract (having paid 30% of the final price).

The developer will continue to inform you promptly of the progress we make.

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EvoEstate description

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.

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.

 

Project originated by:

Documentation

15%
Annual yield
Term: 12 months
Interest payment schedule:
At Project Completion
Interest payments
29.03.2021
Pending
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