Update from the originator:
A new document regarding the project's progress has been added in the documents section.
The originator presents a new project that consists of developing a promotion of 55 homes, 62 parking spaces, and 32 storage rooms in Jerez de la Frontera, Cádiz province (Andalusia).
The building, made up of 4 blocks of flats, includes a complex with common areas, a swimming pool, and a children's area. At a commercial level, the project has all the homes sold. One of the blocks will be acquired by the developer for its own patrimony.
The project is located on Calle Santa Josefina, located 4 km from the Jerez Cathedral and less than 20 minutes from the Cadiz Fair Institution (Horse Fair). It is an area surrounded by restaurants, has schools, shopping centers, and supermarkets (the development is located 800m from El Corte Inglés).
Jerez de la Frontera is the most populated municipality in the province of Cádiz, with more than 200,000 inhabitants and together with the metropolitan area of the Bay of Cádiz-Jerez, it is the third most important urban conglomerate in all of Andalusia.
The promoter of this opportunity, Iniciativas Inmobiliarias, is a business group linked to the real estate sector with more than 50 years of experience and leaders in the promotion of homes in Andalusia (more than 12,000 homes delivered). Within their own activities, they have their own construction and marketer. They also have urban planning and land management services. The group has 5 associated companies and is present in more than 20 municipalities. The originator has previously worked with Real Estate Initiatives on the Rota Project. Within the documentation area you can find more information about the promoter.
The project has a capital gains strategy, which consists of an alliance with the developer to exercise the purchase option it has on the land. The contributions of Urbanitae investors will be delivered to the developer through a capital increase to the vehicle company that develops the project: Residencial Plaza Norte 3, SL
Of the total financing objective uploaded to Urbanitae, the promoter has personally invited partners, friends, and family members who will contribute up to 48% of the total.
In order to enter the maximum number of investors possible, in this project, the investment will be limited to a maximum of € 3,000 per investor.
The license has already been approved by the Governing Board and will be received in the next few days. The works will begin immediately after the capital increase and after the entry of the developer loan.
The promotion is 100% reserved. The developer is going to acquire Block III with 16 homes, 16 parking spaces, and 7 storage rooms for its assets.
The operation will be structured via a capital increase, where both the promoter and Urbanitae investors will make a capital contribution to the company vehicle for the operation. The said contribution will be used for the acquisition of the site, currently owned by a company of the promoter group. The operation plans to resort to bank financing for the development of the work (promoter loan). The farm has a mortgage charge that will be lifted with the first provision of the promoter loan, which has already been positively sanctioned by a bank.
The developer will be dedicated to the integral management of the development, construction, and commercialization. He will also be an investor in the project, contributing 52% of the total investment capital.
There are several reasons to invest in this project:
The developer expects to generate a total income of 9,884,563 euros with the sale of the promotion, which would mean a net profit for the Urbanitae investor estimated (after expenses and taxes) of around 1.38 CoC in an approximate period of 24 months by the promoter.
A market study has been carried out to determine if the sales prices raised by the developer are reasonable. The promoter has experience in developing promotions in the area and knows first-hand the commercial pulse of Jerez. Although there are promotions similar to the project for sale, Plaza Norte 3 has 100% of the promotion marketed, which eliminates the risk of sale.
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.
The estimated term of this project is 24-26 months.
There are several reasons to invest in this project:
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:
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 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||€ 1,562,417||€ 280 / m 2|
|Solar Cost||€ 1,470,500||€ 264 / m 2|
|Legal Costs||€ 91,917||€ 16 / m 2|
|General Costs||€ 7,148,643||€ 1,283 / m 2|
|Construction Cost||€ 5,393,198||€ 968 / m 2|
|Other Costs||€ 1,755,445||€ 315 / m 2|
|Urbanitae Commission (s / VAT)||€ 28,600||€ 5 / m 2|
|Financial costs||€ 293,663||€ 52 / m 2|
|Total investment||€ 8,993,724||€ 1,614 / m 2|
|External financing (promoter credit + buyers)||€ 7,793,724||€ 1,399 / m 2|
|Promoter contribution||€ 620,000||€ 111 / m 2|
|Urbanitae investors contribution||€ 580,000||€ 104 / m 2|
|Net Income from sale||€ 9,492,160||€ 1,704 / m 2|
|Sale of 55 homes||€ 9,884,563||€ 1,774 / m 2|
|Marketing and advertising||€ 222,403||€ 39 / m 2|
|Corporate Tax Forecast||€ 170,000||€ 30 / m 2|
|Total profitability||38 %|
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