Finca Cortesín

 Variable-interest loans
Project listed: 17.11.2020
Malaga,
Spain
485 016.00 €
Raised Of 867 000.00 €
13.2%
Annual yield
Term: 28 months
Interest payment schedule:
At Project Completion
Invest:
Interest payments
10.04.2023
Pending

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Risk rating

CriteriaRating
Macro Location AnalysisC+
EquityA+
Financial CostD+
Purpose of the loanB+
Development's licenceA+
Borrower's experienceA+
PresalesD-
ElevatorC+
ParkingA+
Project MarginA+
EvoEstate Risk rating is of an informative nature only and can not be considered investment advice.
Project rating
B+
Originator rating
A

Descripton

We present a new project that consists of the development of a luxury villa in Casares (Málaga), within the Finca Cortesín complex. Finca Cortesín,  awarded by the most prestigious publishing groups, as one of the most luxurious and exclusive resorts in the world, heads the number one position in Spain. Developed by the Madrileño group Single Home, it was inaugurated in March 2006.

Finca Cortesín extends over an area of ​​215 hectares surrounded by nature, the Resort is divided into 6 large areas: the 5-star Hotel and 67 suites; the Golf Course hosting the world championship; the SPA & Sports Zone; the Beach Club and the exclusive Galería Comercia; and, finally, the Finca Cortesín Residences.

Its location allows you to reach Marbella, capital of the Costa del Sol, in a few minutes, as well as Puerto Banús and Sotogrande, two of the most important marinas in the Mediterranean. And, by highway, in 50 minutes to Malaga international airport, and in 15 to Gibraltar.

The promoter of the CALEDONIAN opportunity owns several farms in the complex, where he plans to develop an exclusive residential project in the hands of the world-renowned Brazilian architect Marcio Kogan. The project involves the construction of a first villa, overlooking the sea and the Hotel, on the first line of the Golf Course, and facing southwest. 

 

PROJECT DESCRIPTION

The promoter of this opportunity is CALEDONIAN, a developer and construction company founded in 1998, oriented to the premium real estate sector and specialized in unique projects, is today a consolidated reference in Spain, for its quality, technology and innovation, in the prime real estate sector. Its founder, Enrique López Granados, linked to the Single home Group, has a long family history with more than 35 years in the development and construction sector. The developer has participated in the development of the Finca Cortesín complex. Within the documentation area, you can find more information about the promoter. 

The architecture project has been designed by the prestigious Brazilian architect Marcio Kogan and his MK27 studio specialized in the prime residential sector. The villa of approximately 650m2 and distributed over two floors will be developed on a 1,800m2 plot. The house will be configurable by the buyer, who will be able to customize it to his liking, depending on his needs. In addition, it will have exceptional quality, a high degree of technology and energy efficiency.

This project follows a capital gains strategy, which consists of an alliance with the developer to develop the home. The developer is currently the owner of the land and several adjacent plots for the development of future projects. The project already has a building permit. The architectural project of the house (basic and execution) has already been prepared and the works are scheduled to begin once the financing campaign is closed and the operation is signed. The sale of the house, according to the developer's own experience, will begin once the construction work begins. As expected by the area, the developer has detected a latent demand among clients who are users of the Finca Cortesín complex itself, either from the residences, the hotel or the golf course itself. 

 

STRUCTURE

The operation is going to be structured through a company already constituted exclusively for this project by the developer. In said company, a capital increase will be carried out where the developer will contribute the plot, the project, and the license and Urbanitae investors will contribute the remaining capital necessary for the development of the project where the development is located. The site has a mortgage charge that represents approximately 50% of its value. The operation does not plan to have financing from a bank. The capital contributed by Urbanitae investors will allow starting the development of the construction of the project and have approximately 1 year of cash to be assuming the construction costs. During that year, the sale of the house is planned. With the amounts received on account by the buyer, the rest of the payments will be made during the work. 

The promoter will be dedicated to the integral management of the development, construction, commercialization, and will also be an investor in the project, contributing 50.16% of the total investment capital.

WHY INVEST?

There are several reasons to invest in this project: 

  • The plot is already owned by the developer and has a license and execution project 
  • Exceptional location, within Finca Cortesín , a world-class luxury resort.
  • Investment opportunity in a  new construction development project.
  • The total net return estimated by the developer is  31% in 26-28 months.
  • The project will be promoted by  CALEDONIAN , a leading developer in the prime residential sector. 
  • The project promoter invests its own capital in it, which aligns the interests of all the agents involved in the investment.

COST EFFECTIVENESS

The developer expects to sell the home for € 4,500,000 in the base scenario. However, the sale price in the Economic Summary contemplates a conservative sale scenario for 4,000,000 euros with the sale of the house, which would mean an estimated net profit for the investor (after expenses and taxes) of around 31%.  The project does not plan to obtain a developer loan and will finance itself with the sale of the house. 

MARKET

A market study has been carried out to determine if the sales prices raised by the developer are reasonable. The developer has the experience of having designed Finca Cortesín , and selling the residential part within the complex, therefore the developer knows first-hand the commercial pulse of the area. There is information available on the market within the documentation, "Sales witnesses", where you will find a list of homes for sale in the area.

WHEN WILL I GET BACK THE MONEY INVESTED?

The estimated term of this project is  26-28 months.

  • The anticipated terms of the promotion are as follows:
  • First quarter 2021, start of the works.
  • Fourth quarter 2022, end of construction.
  • First quarter 2023, first occupation license and delivery of the house.
  • Second quarter 2023, liquidation of the company and distribution of profits to investors.

It is important to bear in mind that in any real estate development the terms can vary both upwards and downwards. 

RISKS

All investments carry risk. We detail the clearest risks we have identified for this project: 

  • Increase in project deadlines due to construction delays.
  • Diversion of fixed costs associated with an investment, unforeseen in construction
  • Risk of not reaching the sale of the home during the first year of construction. In this scenario, the developer agrees to provide the necessary capital to complete the construction and Urbanitae investors would not be obliged to assist in this contribution. This situation would impact the expected profitability.
  • Risk of not achieving the expected sale price in the developer's business plan.

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Warnings and Risks

Urbanitae Real Estate Platform PFP (Urbanitae) does not hold the status of an investment services company, or a credit institution and is not attached to any investment guarantee fund or deposit guarantee fund. The information published by Urbanitae Real Estate Platform PFP on its Website is for informational purposes only and in no case may it be considered as recommendations to investors.

The participatory financing projects published by Urbanitae on its Website are not subject to authorization or supervision by the National Securities Market Commission or by the Bank of Spain, therefore, all the information provided by the developer in relation to the projects has not been reviewed by them.

Urbanitae expressly informs that, in the event of non-compliance with the total investment volume of the project, the term for the capture may be exceeded up to 25%, maintaining the same investment conditions. Likewise, the project may be financed by Urbanitae when at least 90 percent of the financing objective has been reached, after discounting the participation in the project that the platform itself may have. All of this in accordance with the provisions of Article 69 of Law 5/2015 on the Promotion of Business Financing.

The investment in the projects published on this Website may entail certain risks, such as the risk of total or partial loss of the capital invested, of not obtaining the expected monetary return or lack of liquidity. Therefore, we advise investors to only invest an amount that they are willing to lose and suggest that they diversify their investments to minimize and mitigate potential risks. In the event that the promoter is unable to return or remunerate the funds received, Urbanitae will not return their investment to investors.

 

Total Purchase€ 959,225€ 1,782 / m 2
Solar Cost€ 920,000€ 1,710 / m 2
Legal Costs€ 39,225€ 72 / m 2
General costs€ 1,986,008€ 3,691 / m 2
Construction Costs€ 1,517,864€ 2,821 / m 2
Other Costs€ 468,144€ 870 / m 2
Commission Urbanitae C / VAT€ 62,920116 € / m 2
Financial expenses€ 53,593€ 99 / m 2
Total investment€ 3,061,746€ 5,690 / m 2
Land financing€ 423,630€ 787 / m 2
Buyer financing€ 1,033,166€ 1,920 / m 2
Urbanitae Vehicle Contribution€ 800,000€ 1,486 / m 2
CALEDONIAN contribution€ 805,000€ 1,496 / m 2

 

Net Income from Sale€ 3,600,000€ 6,691 / m 2
Sale Housing€ 4,000,000€ 7,434 / m 2
Cost of Sales€ 200,000€ 371 / m 2
Corporate Tax Forecast€ 200,000€ 371 / m 2
Total profitability31 %

 

PROJECT CARRIED OUT BY

Caledonian

1 project / s in Urbanitae

 

CALEDONIAN  is a developer and construction company founded in 1998 oriented to the real estate sector and specialized in unique projects in the prime residential field. CALEDONIAN is present in projects in Madrid and its surroundings, the Balearic Islands and Malaga. 

 

Project originated by:

Documentation

485 016.00 €
Raised Of 867 000.00 €
13.2%
Annual yield
Term: 28 months
Interest payment schedule:
At Project Completion
Invest:
Interest payments
10.04.2023
Pending
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