GRAN CANARIA

 Development loan
Project listed: 06.07.2020
Spain
8%
Annual yield
Term: 18 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Interest payments
30.09.2020
Pending

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August 05, 2020

Update from the originator:

Since these projects are somewhat different from the rest of the projects without mortgage guarantee, for your tranquillity, Housers would like to inform you of the timing of this project: Once the project has been financed, the guarantee agent will take the guarantee from the developer on behalf of all the investors. This mortgage guarantee is expected to be signed during the first week of August. Step 2.- When the guarantee agent takes over the guarantee provided by the developer, the project will be deemed to have been financed, and the financing contract will begin in accordance with clause 5.1 of the same and the delivery of provisions to the developer will begin. Step 3.- After having signed and delivered the guarantee, it will be registered in the property register of the Canary Islands. A registration period of between 30 and 60 days is estimated, although, given the summer dates in which we are, it could be longer.

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Risk rating

CriteriaFrom -2 to 2
Property type0
LTV1
Loan Structure0
Pre-sales-1
Experience0
License0
Macro-location2
Micro-location1
Purpose of the loan1
Investment length1
EvoEstate Risk rating is of an informative nature only and can not be considered investment advice.
Project rating
B
Originator rating
B

Descripton

THE OPPORTUNITY

Type of opportunity: Loan

Modality: Development Loan1 

Profitability: 12%2 in 18 months (8%3 in 12 months)

 

We present Gran Canaria, a new development loan1 project, which consists of granting a loan to a project developer for the funding of the construction and development costs of twenty apartments and one commercial unit in Gran Canaria, Spain.

 

REASONS TO INVEST IN GRAN CANARIA

- First project with a mortgage guarantee: it is the right granted to investors over a property so that in the event that the developer fails to comply with the payment commitment or fails to pay the debt, the investors can execute the mortgage guarantee to recover their money. The legislation governing Participatory Finance Platforms in Spain prevents them from taking guarantees of any kind on behalf of investors. For this reason, Housers will use a Guarantee Agent in its projects with mortgage guarantees. The chosen Guarantee Agent is Bondholders;

- Seven apartments were already reserved;

- The construction work has already begun;

- The  scoring of this opportunity is BBB. For more information click here.

 

LOCATION

The project is located in Gran Canariaan island located in the Atlantic Ocean that belongs to the Autonomous Community of the Canary Islands.

Highlights of the location:

- After Tenerife and Fuerteventura, Gran Canaria is the third largest Canary Island in the Atlantic;

- It has over 500 beaches with white sand and blue waters, virgin bays surrounded by wild nature, family beaches with all kinds of services and urban bays with shops, bars and restaurants;

- It presents a subtropical climate, with long, sunny days and temperatures between 19º and 25º all year round;

- It is one of the most important tourist destinations in Spain. It has places of great interest, both in terms of tourism, landscape and culture. The highlight places are: the Cathedral of Santa Ana, the Roque Nublo, the church San Juan Butista and the Dunes of Maspalomas, a special nature reserve located in the south of the island.

 

THE PROJECT

The opportunity foresees the construction of 20 apartments and one commercial unit. The total built area is 1.173,93 m2, distributed over 6 floors:

Ground Floor

- 21 storage units;

- Commercial unit;

- General access to the building;

Intermediate Floors

- 4 studios per floor;

Last Floor and Below Deck

- 4 duplexes, all of them with one bedroom with bathroom in the upper floor and two of them with large terraces.

All the apartments have an area with bedroom, kitchen and bathroom, and movable partitions that allow the modulation of space and the maximum benefit of all rooms. Contemporary architecture and top quality finishes come together to create an elegant and comfortable structure. 

The project is located 100 meters from Las Canteras beach and 20 meters from Guanarteme street, one of the main avenues. It is a very busy area with a lot of neighborhood life thanks to its many businesses and terraces.

 

THE GUARANTEE AGENT

The chosen guarantee agent is Bondholders, a professional firm with over 25 years of experience providing independent corporate trust and loan agency services. Bondholders is not affiliated with any financial services group. They currently meet the requirements of several international jurisdictions, including Spain, Portugal, Italy, England or New York.

They have extensive experience in financial sectors (Bankia, Santander, Deutsche Bank) and in other sectors as well (FC Barcelona, El Corte Inglés, Vista Alegre, TAP Portugal, Telefónica).

 

THE PROJECT DEVELOPER

The project developer is CORDERO Y PRIETO SL, a family owned development company, whose administrator has more than 15 years of experience in the field of architecture, construction and promotion of homes and workplaces.

They count on a young and dynamic multidisciplinary team, formed by architects, technicians, interior designers and engineers, highly qualified and with the necessary knowledge for the development and construction of properties that totally satisfy the needs and preferences of the clients and make the projects a satisfactory experience at all levels.

The company is committed to the environment, complying with all established protocols in environmental safety and sustainable development.

In addition, it is important to know that GOC will carry out the monitoring of this type of projects so that there will be a permanent control of all the capital contributed by investors.

Risks information: Housers is neither a credit institution nor an investment services firm. Investment in projects published by HOUSERS is not covered by any investment fund. This project has not been supervised by the CNMV nor by the Bank of Spain or any other regulator, Spanish or foreign. The information provided by the developer has not been checked by the CNMV nor does it constitute a prospectus approved by the CNMV. Housers does not provide financial advice that nothing on this website should be construed as such. The investment in this project involves the following risks: risk of total or partial loss of invested capital, the risk of not obtaining the expected monetary return and the risk of illiquidity for recover the investment. The project developer accumulates 0 projects in the platform, which does not result in an additional concentration risk. This loan of 600,000€ is the only phase of this project,  which does not result in an additional concentration risk. The project developer is responsible for the information it has provided to the participatory finance platform for the project on the website. The investor must know that prieto y cordero s.l. will be able to request in the future other loans through the platform to obtain financing for the execution of other projects, within the legal limits and as long as its financial situation allows it. Thus, the company's degree of future leverage may be higher. The promoter has a share capital as of 31/12/2019 of 343,140€ and equity at 31/12/2019 of 569,818.59€ so that its finantial responsibility regarding the project is limited to this amount. A real estate mortgage right is established in favor of Bondholders S.L. Due to the limited equity of the company, the Housers commission is financed within the project. In this way, it is the investor who supports the Housers commission. Both the funding objective and the maximum term to invest in this opportunity may be extended by an additional 25% to the initial term, in accordance with the Law for the Promotion of Business Financing. Likewise, HOUSERS may consider the financing of this opportunity/project closed when it has been 90% financed. This options provided to Housers by the legislation will be used when the typology and the characteristics of the project suggest it, so that the financing can be lower than the required and the deadline is not affected.

1) Development Loan: 18-month fixed rate loan to the real estate developer where interest is distributed monthly and the principal is amortized at the end of the project. The interest is not guaranteed but the project presents a mortgage guarantee.

2) It is the total return on investment. It takes into account the total term and the annual fixed interest agreed by the promoter. See loan information for more info. 

3) It is the annual return on investment. It takes into account the 12 month term and the annual fixed interest agreed by the promoter. For more details see the Promoter's Report. 

 
 
 
1,173.93 m2
 
 
 
20 Bedrooms
 
 
20 Bathrooms
Project originated by:
Housers charges 10% revenue fee. Additionally income tax is withheld (Spain 19%, Portugal 25%, Italy 26%). If your country has double taxation treaty - you do not have to pay income tax in your home country.

Documentation

8%
Annual yield
Term: 18 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Interest payments
30.09.2020
Pending
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