Paseo de la Castellana 105

 Development loan
Project listed: 09.07.2020
Madrid,
Spain
8%
Annual yield
Term: 12 months
Interest payment schedule:
At Project Completion
Interest payments
25.07.2021
Pending

Project updates

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August 03, 2020

Update from the developer:

The money has already been credited to the account and the debt has been recognized in favor of the lenders before a notary, as established in the signed contract. StockcrowdIN reminds you that the deed of unilateral recognition of debt by the borrower is an executive title with full legal effectiveness.

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Risk rating

CriteriaFrom -2 to 2
Property type0
LTV2
Loan Structure1
Pre-sales1
Experience0
License0
Macro-location0
Micro-location0
Purpose of the loan0
Investment length1
EBITDA Margin2
EvoEstate Risk rating is of an informative nature only and can not be considered investment advice.
Project rating
B
Originator rating
A

Descripton

Project summary

 

Discover the new investment opportunity of Kota Construcciones y Contratas SL, at Paseo de la Castellana 105. A project to buy, reform and sell a property in the Tetuán district of Madrid, one of the fastest growing areas of the Spanish capital .

The property has a privileged location as it is very close to the Santiago Bernabeu Stadium, the financial center of the city and surrounded by hotels, shops and a great gastronomic offer.

Participate today  from 50 euros in a fixed-rate loan with interest  payments due, over a  total period of 12 months . The annual interest rate is 8%.

 

The promoter

 

Kota Construcciones y Contratas SL has an experienced team backed by 15 years of experience in the Real Estate sector.

Consolidated, solvent, competitive and constantly growing company that in its history has carried out multiple projects, both in residential and in offices. 

The company stands out for its maneuverability, versatility and commitment to quality in all its promotions, carrying out real estate projects aimed at a premium audience in different Spanish cities such as Madrid, Malaga and Valladolid.

 

The building

 

The project consists of the purchase, reform and sale of a residential apartment in one of the most prestigious areas of Madrid, in the Paseo de la Castellana.

The opportunity has the direct involvement of the developer, contributes its own resources (24%) and, in addition to the resources that will be contributed by on-line investors (38%). The rest is foreseen with bank financing with a mortgage guarantee. that will be formalized in the same act of sale.

The reform that will be carried out with excellent finishes will turn the property into a modern space and of great value in the market. With a total surface of 132 m2, it will house:

  • 3 large bedrooms (1 suite with dressing room), kitchen and a spacious integrated living-dining room

  • Fully equipped bathroom

  • Fully Open Designer Kitchens

  • Ducted air conditioning

  • Central radiator heating

  • Individual hot water

  • Elevator

  • Physical goalkeeper

The property is registered for both commercial and residential use, in this way the developer can start the works immediately after the purchase, needing only a statement from the technical manager for the correct adaptation to the home. After the execution, the cadastral use change is made, a simplified process with short deadlines compared to a registry use change (not necessary). The promoter has extensive experience with this type of procedure.

Access the planimetry here

 

The environment

 

The property is located in the Tetuán district, one of the most central areas of Madrid, with large construction projects in progress, a lot of land still buildable and a progressive appreciation of housing that are making it one of the most demanded neighborhoods in the city.

As for its geographical location, the property is located in the Paseo de la Castellana, a 5-minute walk from the Santiago Bernabéu, the stadium of the Real Madrid football club. Its proximity to the financial district (AZCA) distinguishes the area as highly appreciated by large consolidated companies to locate their headquarters.

The neighborhood has an infinite gastronomic offer and is well equipped with shops, supermarkets and department stores, as well as schools, hospitals and various administrative buildings; it has parks nearby, such as the great Dehesa de la Villa park or the Agustín Rodríguez Sahagún park. Being a neighborhood with 150 years of history, today it maintains its particular idiosyncrasy and its own personality.

Given its relative proximity to the M-30 motorway, the neighborhood is easily accessible by car. Other transport options are the bus (lines 49, 177, 124 and 66) or the already mentioned metro (Tetuán (L1), in addition to Valdeacederas (L1), Ventilla (L9), and Plaza Castilla (L10). 

Without a doubt, the property is located in a quiet and familiar neighborhood with various accesses to public transport (metro and bus). A perfect neighborhood for buying a home!

The loan

 

The loan is presented as a very attractive investment opportunity:

  • Purpose : The loan issued will finance the acquisition and the costs of the integral reform of the property
  • Type of product:  Fixed interest loan.
  • The annual nominal interest rate: 8%
  • Total Return:  8%
  • Expiration term:  12 months
  • Amortization rate of capital:  At maturity
  • Payment of interest:  At maturity
  • Guarantees:  Recognition of Debt before a Notary.

Summary Risks

 

Investing in this project involves the following risks: risk of not obtaining the expected monetary return, risk of falling prices, risk of not completing financing, political risk, risk of rate hikes, risk of lack of liquidity to recover capital invested, subordinate nature of the loan (particularly vis-à-vis the mortgagee, in those cases in which the acquisition of the property object of the project is financed additionally by loans with mortgage guarantee), risk of total or partial loss of the invested capital and risk of fraud.

Risk of falling prices: That the price of the property falls due to the increase in supply or decrease in demand in the area. There may also be a general drop in property prices due to a multitude of factors.

Mitigation: The developer knows perfectly the dynamics of the market and his team is made up of professionals with extensive experience in the sector. Their knowledge and know-how allows them to identify and anticipate price trends, anticipating the market. There is an appraisal of the property and sometimes a market study is carried out.

Liquidity risk: Not being able to find a buyer when you want to sell the property.

Mitigation: The sales team knows the dynamics of the market and is structured with a team of collaborators in intermediation services to reduce this risk.

Rate rise risk: Increase in the cost of financing the purchase of real estate (mortgages). Which would push down the demand of the housing market.

Mitigation: The most reputable economists predict that the European Central Bank will not raise interest rates dramatically this year. And the upload that will be implemented in the future will be very slow.

Political risk: What happens if political instability grows during this year.

Mitigation: As it is an asset located in a highly consolidated and exclusive area, it does not influence it frontally, allowing it to reduce this risk significantly.

Risk of not completing the financing: What happens if the investments do not complete the entire objective of the opportunity in the expected time.

Mitigation: The Law for the Promotion of Business Financing 5/2015, allows Participatory Financing Platforms to exceed the initially foreseen term of up to 25%. If the opportunity has reached at least 90% of the financing objective, it can be effectively completed. In the event that the campaign does not reach the minimum 90% of the project, all amounts are returned by the platform at no cost to the investor.

Risk of total capital loss or of not obtaining the expected monetary return: It is important to keep in mind that there is no safe investment, and as with any investment, there is always the risk, not only of not obtaining the expected returns, but of losing all than invested. There may be a bankruptcy or bankruptcy by the developer or the estimates in your business plan may not be met for various reasons.

Mitigation: StockcrowdIN runs a risk analysis of both the developer and the opportunity. It is studied that the promoter is up to date with AEAT and TGSS and that it is not registered in the RAI Likewise, it is studied that no information has been registered on a claim by the Public Administration, nor legal claims and that the company deposits its accounts with regularity.

Fraud risk: It should be noted that there may be a fraud risk due to improper use of the money obtained for the project. There may be a fraudulent use of money from any real estate transaction.

Mitigation: In accordance with the Law for the Promotion of Business Financing 5/2015, StockcrowdIN requests a criminal record and an Honorability Test from administrators and shareholders with high participation in the companies that execute the project. Also, explain that until the participatory financing campaign is completed, the promoter does not have the funds by going to an "escrow" account where he does not have access. It is also required that every two months, the promoter is reporting the use of money and therefore the evolution of the project. You are also required to keep separate analytical project accounting.

Project originated by:

Documentation

8%
Annual yield
Term: 12 months
Interest payment schedule:
At Project Completion
Interest payments
25.07.2021
Pending
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