Please find the document added in the "documents" section.
From a+ to d
Macro Location Analysis
EvoEstate Risk rating is of
an informative nature only
& can not be considered
Purpose of the loan
INFORMATION ABOUT THIS PROJECT
We present a new project that consists of granting a loan for the development of two developments with a total of 80 storage rooms in Madrid: the first, with 35 units, located in the District of Hortaleza (Calle Andrés Obispo 37); and the second, with 45 units, in Bellas Vistas (Calle San Raimundo 58)
The Hortaleza Promotion is located between Carretera de Canillas and Gran Vía de Hortaleza, next to the Pinar del Rey metro station. The promotion has already begun to be marketed and has 24 of the 35 pre-reserved storage rooms.
The Bellas Vistas Development is located in the Tetuán district, next to Avenida de Pablo Iglesias and the Alvarado metro. The promotion has 17 of the 45 pre-reserved storage rooms.
The promoter of this opportunity is a company linked to GRUPANXON. This company is a business holding with more than 20 years of experience in different areas, highlighting real estate development, and integrates its own construction company. It is the same promoter of the operations of Magallanes, Prosperidad, Arturo Soria and Simancas already financed on the platform.
In 2017 the company decided to create a new business line specialized in the promotion of parking spaces and storage rooms, finding a clear market niche in the centre of large cities due to the scarcity of this type of solutions. In less than three years, they have promoted and built more than 600 units between Malaga, Seville and Madrid.
The project has a strategy via a fixed-rate loan , which consists of financing the developer to develop the two storeroom developments. Both the construction and the commercialization of the projects will be carried out with the promoter's own resources.
The proposed promotions add up to a total of 80 storage rooms, which will be developed in two premises on which the developer has signed a deposit contract for their acquisition. The commercialization of the operation has already started and there are signed pre-reserves (24 units in the Andrés Obispo Project and 17 units in the San Raimundo Project). The target customer of the storage rooms are residents of the neighbourhood who are looking for additional space to their home, for the custody of belongings.
Due to the nature of the operation, the building license is processed through a Responsible Declaration (in collaboration with an ECLU, a Collaborating Company for Urban Planning Licenses approved by the Madrid City Council); therefore, it is not necessary to process a file with the Municipal Administration. Subsequently, once the project is completed, supervision by the Administration of the works will be necessary. The work is scheduled to last for about 6 months and the project as a whole for a maximum of 10 months, including the deed process for the final units. The promoter has already carried out a technical study on the premises and consulted the mandatory community regulations for the development of the operation.
The operation will be articulated through a company created by the promoter exclusively for the project: JJM CONSTRUCTORA 2030, SL . The operation will be structured via debt, where Urbanitae Investors will grant a loan to the company. The sale of all the storage and housing units is not necessary to repay the loan. The main characteristics of the debt are (more information in the document "Loan Report") :
Loan amount: € 500,000 .
Fixed rate loan of 12% per year.
Loan term : 10 months.
Interest on the loan will be paid upon maturity.
Regarding the guarantees of repayment of said loan, a first mortgage promise will be established in the debt contract on the following properties:
The assets themselves objects of the two promotions, being:
(1) local located in Andrés Obispo street 37 28043, Madrid and (2) premises located in calle San Raimundo 58 28039, Madrid.
Additional guarantees to the project:
Eleven storage rooms acquired by the developer, free of charge, from the Prosperidad Project (located at c / Luis Cabrera 62, 28002, Madrid).
Two storage rooms acquired by the developer, free of charge, from the Magallanes Project (located at c / Magallanes 30, 28015, Madrid).
There are several reasons to invest in this project:
The building license is processed as a Responsible Declaration and therefore it is not necessary to wait for a favourable report with the Administration to start the works.
The project will be promoted by a company linked to GRUPANXON , an entity with more than 600 storage rooms and garages promoted since 2017.
The promoter of the work invests its own capital in it, which aligns the interests of all the agents involved in the investment.
Structured operation via a loan, where it will not be necessary to wait for the sale of all the units to receive the loan returns.
A market study has been carried out to determine if the sales prices raised by the developer are reasonable. There are several promotions in both areas with similar characteristics in the environment. However, some of them are distinguished from this promotion, in the facilities they have (common areas/garages etc).
You can see more information in the documentation, Sales Witnesses, where you will find a list of storage rooms for sale in the area.
WHEN WILL I RECOVER THE MONEY INVESTED?
The term of the loan to be granted to the developer is 10 months.
The terms provided by the promoter for the operation are:
May 2021, granting of the loan by Urbanitae to the developer.
June 2021, start of the works.
First quarter 2022, end of works and deed of storage rooms.
March 2022, repayment of the loan.
All investments carry risk. We detail the clearest risks that have been identified for this project:
Delay in the sale of storage rooms or homes and therefore the developer will face difficulties in repaying the loan .
Diversion of fixed costs associated with the investment, unforeseen events in construction.
Risk of not reaching the expected sales rates and consequently the delay in the deadlines.
Risk of not achieving the sale prices expected in the business plan, and therefore the developer could not afford to repay the loan.
PROJECT CARRIED OUT BY
In 2013 the GRUPANXON brand was created as the Group's Holding Company. Since the beginning of 2010, the parent company that has been operating for more than 20 years, begins to opt for other lines of business, acquiring disparate companies in their activities, ranging from Process Consulting, through Advice on Real Estate operations, and Construction of your own Promotions. GRUPAXON created in 2017 a new line of business specialized in the promotion of parking spaces and storage rooms. In less than 3 years they have promoted and built almost 600 units between Malaga, Seville and Madrid.