All the information about withdrawals, accounts, Secondary Market and other topics can be found in this FAQ blog post. In case you still have questions, you can contact us at info@evoestate.com
All the information about withdrawals, accounts, Secondary Market and other topics can be found in this FAQ blog post. In case you still have questions, you can contact us at info@evoestate.com
Update from the originator:
The July report has been added to the documents section.
Update from the originator:
Due to the restrictions caused by COVID-19 the project has been facing delays. The estimate for the delays might be 3 months or more. However, the originator does not expect changes in total return.
Update from the developer:
First of all, the developer would want to thank you for the trust you have placed in their company. For the developer, it is also a reason for responsibility to meet the proposed profitability objectives.
In addition, the developer takes the opportunity to inform you of the main milestones and news of this in the last months:
Property:
• Pending the milestone of the last land payment to the seller. This milestone is triggered by obtaining a license.
Technical aspects:
• Completed and validated execution project.
• Once the Project has been validated, the construction company has quoted the closed Project with the qualities and prescriptions agreed with the buyer (Aberdeen), the estimated amount being at the beginning of work at € 4.36 million, pending the initiation of subcontract bids. The increased cost of construction with respect to the initial BP occurs due to the following reasons: Increase in cost above ground: In the negotiation phase of the sale of the asset to the fund Aberdeen, instead of negotiating a discount for the full purchase of the asset (these operations usually carry a discount of between 5% and 8% of PV), an increase in qualities was negotiated, in order to better position commercially the property. Additionally, it was requested Aberdeen modify the number of housing units, increasing it from 42 to 46 units, with the corresponding overcharge.
Underground cost increase: The main driver of the underground cost increase is an increase in the built area. This increase occurs by two factors; a first factor due to the increase in the number of dwellings (when doing 4 more houses increase the number of parking spaces and storage rooms), an increase in the circulation area due to their lower efficiency due to the shape and dimensions of the plot, and location of a common area (community social room with garden) on the ground floor that increases the attractiveness of the property; the second factor of due to an increase in the cost of containments due to the delay in the execution of the municipal parking adjacent to our plot, arising the need to undertake some land containment works in the common area and swimming pool previously did not necessary.
The municipal requirements have been answered for the process of obtaining a license, pending the favorable report of the same to be able to start works In the next weeks.
N º DATE U D UDS. VALUE AMOUNT
1 March 2021 M 2 591.00 - 248,000
2 MARCH 2021 UD - - 76,000
TOTAL: 324,000.00
COMMENTS
NECESSARY BY INCREASE OF HOUSEHOLDS
REQUIRED FOR DELAY IN EXECUTION OF AYTO PARKING
INCREASE EXECUTION OF FILLERS +
POOL AREA CONTAINMENT
LIST OF CHANGES APPROVED UNDER GRADE
Commercial aspects:
• Last December a sale and purchase agreement was signed with Aberdeen for the amount of € 14,900,000, slightly improving the expected income from the sale of the property. The first milestone to be met in this contract is the start of works before June 2021. The forecast is to start the works in April and therefore improve that date.
Financial aspects:
• Last February the financing of the Project was signed with Bankia. This financing covers hard cost, soft cost, debt service, and pending payment of the floor. This financing, despite having a slightly higher cost than the initial BP estimate, covers all costs pending and eliminates the risk of the need for additional Equity contributions by the partners.
• This increase in financial costs is more than offset by the elimination of the cost of the Horizontal Division (sold without performing this DH) and elimination of costs of marketing, also partially offsetting construction costs.
• Regarding construction costs, they are costs of the Department of studies of the construction company, having requested offers from subcontractors for the most important items. To the subcontractor bids are not closed, there is a potential award closing that could slightly streamline these costs, which will be worked to collect during the execution of the work. By working in construction with an open book model, any savings in construction would have an impact on the income statement of the development, benefiting the investor and not the builder.
A new document was uploaded containing more information about the progress.
Update from the developer:
Property:
Technical aspects:
Commercial aspects:
Financial aspects:
As a sign of our commitment to you and in accordance with the developer's value of being transparent in communication, the developer will inform you periodically of all significant advances in future communications.
Update in July from the developer:
Dear investor,
First of all, the developer would want to thank you for the trust you have placed in our company by investing in our Pozuelo "La Estación" project. For the developer, it is also a reason for the responsibility to meet the proposed profitability objectives. In addition, the developer takes the opportunity to inform you of the main milestones and news of this:
Property:
On January 28 2020, the developer proceeded to purchase the land through a public deed. Payments were structured in 3 installments: the first payment was made at the time of signing. This month (6 months after signing the public deed of sale) the second payment has been made. The third and last payment will be carried out within 12 months or when the building license is obtained (whichever is earlier, as agreed with the vendors). It is worth noting the good relations that the developer is maintaining both with the sellers of the lot and with the rest of the owners of the area.
Technical aspects:
The developer applied for the Construction License in April, also delivering the basic project at the time of application and paying the corresponding fees. The developer estimates the granting of this in1Q 2021. The developer is currently in the process of closing the execution project with the architects (the project is being designed by the prestigious architecture studio "Touza", complying with Gestilar's own design quality standards); as well as finishing the cost analysis with the construction company (Gestilar Construcciones, the company's own construction team which will ensure us full control of the work), meeting the price expectations reflected in the developer's business plan.
Commercial aspects:
The developer has received a non-binding offer (NBO) from a fund that would use the asset for rent (BtR). The offer has been signed, granting the fund an exclusivity period that runs until September, in order for them to carry out due diligence (DD) during this period. Obtaining a satisfactory result, they will issue a binding offer. Thanks to this agreement the developer will be able to secure the profitability of the project much sooner than expected. As expected, commercial actions will not be carried out until the exclusivity period is exceeded. As a sign of our commitment to you and in accordance with the developer's value of being transparent in communication, they will inform you periodically of all significant progress in future communications.
June's update by the developer. Dear investors, First of all, I want to thank you for the trust you have placed in the project and in GESTILAR as a promoter agent in the Pozuelo de Alarcón operation. After financing the project, the investors' entry into the company Pozuelo Norte Crowd S.L. It shall be made through a capital increase in cash, where each investor will have their associated percentage based on capital that you have invested. Furthermore, we are currently negotiating the Shareholders' Agreement to be signed between the company Developer: Gestilar la Estación S.L. and the vehicle that groups Urbanitae investors, Pozuelo Norte Crowd SL. This agreement is being advised by the Garrigues tax-mercantile department and we plan to sign it and public elevation for the next few days. Some of the most outstanding points of the pact that we want to bring to your attention are: ▪ In the Deed of Sale of the lot signed by Gestilar last January, a Deferred payment structure, the last payment of which must be made 18 months after the signature of the deed or at the time of obtaining the license (whichever comes first). As explained in the published project, Gestilar had before the crisis derived from Covid-19 the pre-approval of several financial entities for this last payment (50%) of the site, under a series of conditions (presales), so it was not foreseen that it would be necessary to contribute more capital to the project. However, to protect our investors in the event that banks do not eventually enter To finance this last payment, it has been agreed with Gestilar the non-obligation by investors Urbanitae to contribute more capital to meet the last payment of land, which involves an amount of 3 M Euros. While this clause eliminates the obligation to contribute more capital by investors of Urbanitae, in the event that the banks did not agree to finance the last payment of the land, Gestilar undertakes to provide the necessary capital, or where appropriate seek capital through third-party investors. In this case would produce a dilution in the percentage of participation of Urbanitae investors in the draft. This dilution, according to the sales scenario of the business plan, would mean a lower return of the project for Urbanitae investors, which would be around 25% compared to 50% initially planned by Gestilar. ▪ As reported in the project, in the partnership agreement the construction work is entrusted to a construction company belonging to the Gestilar Group, which will carry out the work in accordance with quality standards of the brand and under the business plan initially established. ▪ The promotion will be marketed by a subsidiary of the Gestilar Group, which may subcontract those services that you consider for the correct development of sales. Lastly, report that for the last two months Gestilar has maintained contact for the bulk sale of the promotion to a single buyer. We must be careful, since these conversations began before the crisis caused by the Covid-19, and therefore we can not trust 100% that this sale will occur. However, if said negotiation comes to fruition, it would be excellent news for all investors in the project because it would eliminate the commercial risk of the unit sale of the houses. For our part, we will follow them informing through the communication channel of the platform of future advances arising in the development of the promotion. Sincerely, Mr. Ignacio Novela Del Rey. Sole administrator. Pozuelo Norte Crowd S.L.