Update from the developer:
Regarding the license, the developer wants to tell investors that the Javea City Council made some objections that have been corrected, already having the favorable technical report and waiting for the developer to do it legally. According to the architect of the project, it is expected to be obtained over the next month of March as, since the beginning of the year, it has been working much slower than normal in the city Hall.
The execution project is already in place, however, as work is being done on the tender for the work is pending in case any changes need to be made to adapt it to the costs of the NP. As for the construction, as the developer said before, is working on the tender, having invited 6 construction companies.
Regarding the commercial aspect, at the moment the developer continues with the 5 original reservations, all and that commercial activity is being considerably reduced by the restriction of mobility in the Valencian Community, which not only prevents not "letting in" the second residence for people from other communities but to the community itself since there are perimeter closures in towns with more than 50,000 inhabitants. Still, it's working with two possible new reservations.
Finally and with regard to the financing of the promotion, note that the originator has not returned to discuss the project with the entities, waiting to have at least a license and closing costs and of course, advance with the reserves. The developer's intention is to present the project formally to the entities in the first fortnight of March.
From Urbanitae, we present a new project that consists of the development of a residential building with 12 new-build collective homes in Jávea (Valencia). We leave you the link to the promotion website: Corinthia Residencial
Jávea is a municipality in the Valencian Community, Spain. Located on the north coast of the province of Alicante, in the Marina Alta region. It has a population of 27,225 inhabitants (INE 2016), of which 53.1% are of foreign nationality. Currently, the tertiary sector is the engine of the local economy, with an average annual temperature of 18ºC, ideal for the development of sun and beach tourism characteristics of the Mediterranean area.
The project is located in the middle of Avenida de Augusta, one of the main arteries in the city of Jávea, next to Avenida de Placita and just 300 meters from the beachfront and 1.5 km from the historic center of Jávea.
The promoter of this opportunity, WHITE REAL ESTATE, is a Valencian real estate company specialized in developments in Valencia capital and the surrounding coastline. The management team is led by professionals in the real estate field with more than 25 years of development experience and they have a management, technical and commercial department. Within the documentation area, you can find information about the promoter.
The project has a capital gains strategy, which consists of an alliance with the developer to develop the project of 12 free homes, intended for first and second homes, indistinctly. The developers have signed a purchase option with the owners of the land that ends on November 15, 2020. The building permit was requested in July 2020 and it is expected to be definitively obtained by the end of the year, with the aim of starting the construction during the first quarter of 2021. At a commercial level, the project already has 5 monetary reserves from buyers (of the 12 available homes). Once the site has been purchased and the building license obtained, the contracts for the sale of the homes will be formalized.
The proposed development consists of 12 homes organized in a single residential building, which will have an underground floor with 14 parking spaces and 12 storage rooms, ground floor (4 homes with private garden), first floor (4 homes) and attic-duplex floor ( 4 homes). All the homes are very similar in terms of their typology and have approximately 106m2 of constructed area, excluding gardens and terraces.
The operation will be structured through a company already established exclusively for this project by the promoter, called Cortinthia Residencial SLU. In this company, a capital increase will be carried out where investors will be admitted. This same company, in turn, will participate in another company that will be in charge of developing the operation. The promoter will invest through his own company, together with his private co-investors, holding between them c.66.66%. All partners will provide the necessary capital to develop the operation. The capital will be used for the purchase of the site, legal expenses and the payment of expenses related to obtaining the license. The operation has already been presented to a leading financial institution who has shown interest in financing construction; Since at the time of opting for said financing, the site will be acquired by the company free of charges, it will have a building license and with a high degree of housing signed in a private contract. For the remaining seven homes, the developer plans to sell some units before the start of construction work and the rest during the course of the same.
The promoter will be dedicated to the integral management of the development and will also be an investor in the project, directly contributing around 20% of the total capital required.
There are several reasons to invest in this project:
The developer expects to generate a total income of 4,580,000 euros with the sale of the 12 homes, which would mean an estimated net profit for the investor (after expenses and taxes) of around 35 %. Currently, it has reserved almost 50% of the total of the houses, which represents around 45% of the total volume of income expected by the developer.
A market study has been carried out to determine if the sales prices raised by the developer are reasonable. Given the high demand already demonstrated in the development (5 reserved units and several advanced conversations pending to formalize the reservation), the developer does not foresee great difficulty in selling the other seven remaining homes. It has at least two more blocked by clients in the absence of depositing the reservation. You can see more information in the documentation, " Sales witnesses ", where you will find a list of homes for sale in the area.
There are currently several promotions underway in the area. It has been possible to identify around 20 similar new construction homes, in terms of type and size. They are promotions located next to the Arenal beach, within a radius of 2 km. at most. Regarding the prices of the competition, the Corinthia Residencial development has a very close witness, whose remaining homes to sell (3/12) are substantially more expensive. You can see more information in the document Sales Witnesses.
The estimated term of this project is 22-24 months.
It is important to bear in mind that in any real estate development the terms can vary both upwards and downwards.
All investments carry risk. We detail the clearest risks we have identified for this project:
White Investing is a company that provides real estate asset management services, identifying own investment projects and those of third parties. Founded in 2015, it has more than 30 years of experience in the management and development of real estate projects. Since 2015, it has launched more than 14 projects, with a business volume of more than 70 million euros, and 40,000 m2 of building space.