250 000 €
Type: Development loan
Interest payment schedule: At Project Completion
Min. amount of investment - € 0
Update from the developer:
The developer is pleased to inform you that the works of the promotion Prosperity are nearing completion after they have begun on the 20th of August. Its completion is scheduled for mid-month, so we have managed to perform the operation in 4 months. Given the Christmas dates, the developer will try to deed some purchases before the year, and the rest at the beginning of 2021. In January the operation will be closed and the loan paid off.
We detail the progress of the project:
• Current degree of progress of the works: 95%.
• 95% of the units are already formalized through a private contract with the future owners, having already paid each of the 30% of the final price.
The developer will continue to inform you promptly of the progress we make.
After 3 months break, we have the first skin in the game fixed-interest loan for self storage rooms in Madrid. This developer has already had an equity financing with 15% expected returns with Urbanitae. The previous project had sold 88% of the units and the developer is seeing more demand in Madrid.
This loan comes with 2 guarantees: first one on this property and second on the other commercial property that developer has. The Loan to Value ratio comes to 45%
Developer plans to make 16% return after all the costs (including and financing).
From Urbanitae, we present a new project that consists of the development of a promotion of 67 storage rooms in Madrid.
The development is located in the Chamartín district, within the city of Madrid. Specifically, it is located on Calle Luis Cabrera 62, next to Plaza de Prosperidad and Calle López de Hoyos, with a high population density and almost 35,000 people registered in the neighborhood itself. Currently, a housing stock from the end of the 70s predominates and generally they do not have storage rooms in the same property, thus enhancing the profile of buyers in the environment.
The promoter of this opportunity is a company related to Grupanxon. This company 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. This is the same promoter as the Magallanes operation, already financed on the platform.
In 2017, the company decided to create a new line of business specialized in promoting garage spaces and storage rooms, finding a clear market niche in the center of large cities due to the scarcity of this type of solution. In less than three years, they have promoted and built more than 600 units between Malaga, Seville and Madrid.
The project has a fixed-rate loan strategy, which consists of financing the developer to develop the promotion of storage rooms. The developer has already signed a reservation contract for the acquisition of a premises of more than 450m2 that will be transformed into a space with independent storage rooms. Both the construction and the commercialization of the storage rooms will be borne by the developer.
The proposed development consists of 67 individual storage rooms, with direct access from the street and has a parking area and community loading and unloading area. Currently the premises are enabled as a garage and the developer will be in charge of intervening the space to adapt it to the required use. The commercialization of the operation has already started and there are signed pre-reserves. The final target client is residents of the neighborhood who are looking for an additional space to their home, for the custody of belongings.
Due to the nature of the operation, the building permit is processed through a responsible declaration (in collaboration with an ECLU) ; therefore, it is not necessary to file a file with the Municipal Administration. Subsequently, once the project is completed, supervision by the Administration of the works will be necessary. The work is scheduled to last 6-8 months and the project as a whole lasts 12 months, including the writing process of the final units. The developer has already carried out a technical study on the premises and consulted the community regulations for the development of the operation.
The operation will be articulated through a company created by the developer exclusively for the project: JJM PROMOTORA 2020 SL This operation will be structured via debt, where Urbanitae Investors will grant a loan to the company. The sale of all the storage units is not necessary for the repayment of the loan. The main characteristics of the debt are (more information in the Loan Report document) :
Regarding the guarantees of return of said loan, the debt contract establishes a first mortgage promise on two different assets:
There are several reasons to invest in this project:
A market study has been carried out to determine if the sale prices set by the promoter are reasonable. Currently, there are no more than 5 units available for sale of this type.
You can see more information within the documentation, Sales Witnesses, where you will find a list of storage rooms for sale in the area.
The term of the loan to be granted to the developer is 12 months.
The deadlines set by the developer for the operation are:
It is important to keep in mind that in any real estate promotion the terms can vary both upwards and downwards.
|25.06.2021||Paid||No||26 January 2021, 21:10|