Update from the originator:
The demolition work on the building has already started.
The foundation and structure will begin in September and is estimated to complete the entire 12-month work.
The developer has been working and planning the execution of this project for more than two years, partly because of the pandemic and they are delighted that they were able to,
finally, start the work.
Find the new progress document in the documents section.
|Criteria||From a+ to d||Project rating|
Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Loan To value
Purpose of the loan
We present a new project that consists of the development of a promotion of 30 professional offices, commercially known as loft , 20 parking spaces and 30 storage rooms in Fuenlabrada, Madrid.
The development is located 1km from the center of Fuenlabrada, the Cercanías station and the “Fuenlabrada Central” Metro station. The promotion has already begun to be marketed and has 18 of the 30 reserved units (6 additional units are in the signing process) . The project has been granted the building license , at the expense of the presentation of the execution project. It is currently in the process of demolishing the existing construction on the site.
Fuenlabrada is a municipality in the Community of Madrid that has more than 195,000 inhabitants, which makes it the fourth most populated town in Madrid.
The promoter of this opportunity is a company made up of professionals linked to PROYECTOS URBANÍSTICOS X-MADRID, SL, a construction company with more than 18 years of experience, specialized in turnkey projects. Within its trajectory, clients such as Hospitales Nisa, Sol Meliá or Metro de Madrid stand out.
The promotion consists of 30 lofts, 20 parking spaces and 30 storage rooms. Marketing of the promotion is already advanced: it has reservations for 18 of the 30 lofts and 11 of the 20 parking spaces. Unit prices range between € 80,000 and € 111,000 with sizes between 30m2 and 50m2.
The land (a single registered property) is owned by the developer and currently has a mortgage charge that will be raised with its own funds before the entry of the loan from Urbanitae investors. The site has an old industrial warehouse that will be replaced by the new building. The demolition work begins at the end of April (Images of the current state are attached "Images Current state").
The developer is pending the formalization of the loan from Urbanitae investors to begin the construction of the building. The project has been reviewed and approved by the City Council and has a municipal building license, conditional only on the presentation of the execution project.
The association of the developer with Urbanitae investors takes the form of a fixed-rate loan, which will finance part of the construction. The rest of the contributions will result from the promoter's own funds and the amounts paid on account by the buyers. Through the contracts signed with the buyers, deliveries on account have been agreed upon during construction.
The final target customer of the development are mainly investors who seek to make the purchase of the asset profitable through rentals. The lofts are being sold by a local agency in Fuenlabrada.
This operation will be structured via debt, where Urbanitae Investors will grant a fixed-rate loan to the company created by the promoter exclusively for the project: YINJO BUILDING 18 SL The financing will go to the construction of the development and the payment of the corresponding certifications until the delivery of the promotion. The promoter does not plan to resort to bank financing.
The main characteristics of the debt are (more information in the Loan Report document) :
The total or partial early amortization will be allowed only from month 15, paying the corresponding accrued interest until the cancellation date, without penalty.
Regarding the guarantees for the repayment of said loan, the following is established in the debt contract:
There are several reasons to invest in this project:
A market study has been carried out to determine if the sales prices raised by the developer are reasonable. Currently, there is no project of these characteristics in Fuenlabrada. The following promotions of the same type are found in neighboring municipalities such as Leganés, Móstoles or Getafe.
You can see more information in the documentation, Sales Witnesses, where you will find a list of homes for sale in the area.
WHEN WILL I RECOVER THE MONEY INVESTED?
The agreed term for repayment of the debt is 18 months, although the developer can repay the loan in advance from month 15, without penalty. The essential milestones of the project are the following:
All investments carry risk. We detail the clearest risks we have identified for this project:
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 promoter in relation to the projects has not been reviewed by them.
The estimated return on the investment is net to the investor. In any case, the withholdings established by tax regulations will be applied to the income obtained, and additionally, a 0.3% corresponding to the commission of the payment entity Lemonway will be deducted.
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 by 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 of 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.
URBANISTIC PROJECTS X-MADRID, is a construction company with more than 18 years of experience, specialized in turnkey projects. Within its trajectory, clients such as Hospitales Nisa, Sol Meliá or Metro de Madrid stand out.