Update from the originator:
The promoter of this project, TRINOSA, has notified the originator of the intention to make an early distribution of part of the contributed capital.
The circumstance that has led to this excellent news for all investors is the developer's achievement of a land tranche within the developer loan approved by the bank. As a consequence, 31.1% of the invested capital will be returned. This early distribution hardly changes the objective profitability of the project (due to the low-interest rate of the contracted loan), but it dramatically improves the IRR and releases part of the capital ahead of time. In addition, as it is a refund of the issue premium, there is no benefit and therefore no tax withholding.
More information will follow.
From a+ to d
Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
We present a new project that consists of the development of a development of 13 semi-detached single-family homes in Soto de Henares, Torrejón de Ardoz (Madrid). This project constitutes the second phase of a twin promotion being developed by the same promoter group in the area.
The houses have 4 bedrooms on two floors, a large private garden of 70 m 2 and a porch at the entrance with two parking spaces on the surface. The average price per home is € 450,000. At the commercial level, the developer began marketing the first phase at the end of May , obtaining 10 reservations for the 13 chalets that comprise it in the first 15 days of marketing. It has been this commercial success that has prompted him to develop this second phase of also 13 townhouses.
The project is located on Concepción Arenal street in the “ Soto de Henares ” neighborhood of Torrejón de Ardoz. The development is located less than 10 minutes from the Renfe station "Soto de Henares" and less than 1km from the Mancha Amarilla Park. It is an area surrounded by restaurants that have schools, shopping centers and supermarkets (less than 5 km from the center of Torrejón de Ardoz).
The promoter of this opportunity, GRUPO TRINOSA, is a company whose origin dates back to the 90s. It began its activity in the Basque Country and in recent years it has spread to other Autonomous Communities such as Madrid, Castilla y León and Murcia. GRUPO TRINOSA has 30 years of experience in real estate development, having delivered more than 2,000 homes . It is currently developing promotions in the Torrejón de Ardoz, Valdemoro and Hortaleza neighbourhoods. 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 for the acquisition of a plot of land in Torrejón de Ardoz, where the 13 homes will be developed. The contributions of Urbanitae investors will be delivered to the promoter through a capital increase to the vehicle company that develops the project: TRINOSA HENARES, SLU .
The promoter intends to formalize a private contract of sale prior to the Public Deed of Sale.
GRUPO TRINOSA plans to apply for the building license during the next few weeks, and following the deadlines set by the City Council, it expects to obtain its authorization in the next 4 months. The works will begin immediately after the signing of the mortgage-developer loan and the obtaining of the building license.
The operation will be structured through a capital increase , where both the promoter and Urbanitae investors will make a capital contribution to the company vehicle of the operation. Said contribution will be used to acquire the site. The operation plans to resort to bank financing for the development of the work (promoter loan). The farm is free of charges.
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 20% of the total investment capital.
There are several reasons to invest in this project:
Investment opportunity in the second phase of a new construction development project .
The total net return estimated by the promoter around 30% in 24-26 months .
The project will be promoted by GRUPO TRINOSA, a leading developer in the residential sector in the Basque Country.
The project promoter invests its own capital, which aligns the interests of all the agents involved in the investment.
The developer expects to generate a total income of 5,817,406 euros with the sale of the promotion, which would mean an estimated net profit for the Urbanitae investor (after expenses and taxes) of around 30% in an approximate period of 24-26 months.
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 (he has carried out a first phase that is 70% commercialized ) and knows first-hand the commercial pulse of Torrejón de Ardoz. The marketing of the promotion will begin once the property has been acquired .
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 RECOVER THE MONEY INVESTED?
The estimated term of this project is 24-26 months .
November 2021, start of the works.
Third quarter 2023 , end of construction. First occupation license and delivery of the homes.
Fourth 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 .
All investments carry risk. We detail the clearest risks we have identified for this project:
Refusal of the owner to sell the land despite the favorable conversations he has had with the developer.
Increase in the terms foreseen in the project, due to delays in obtaining the license.
Diversion of fixed costs associated with investment, unforeseen in construction.
Risk of the bank's refusal to subrogate the mortgage promoter loan to some buyers, due to a situation of supervening insolvency (COVID, ERTEs, etc).
€ 625 / m 2
€ 600 / m 2
€ 56 / m 2
€ 20 / m 2
€ 1,210 / m 2
€ 1,019 / m 2
€ 190 / m 2
Urbanitae Commission (s / VAT)
€ 36 / m 2
€ 64 / m 2
€ 1,983 / m 2
External financing (promoter credit)
€ 1,272 / m 2
€ 142 / m 2
Urbanitae investors contribution
€ 568 / m 2
PROJECT CARRIED OUT BY
TRINOSA , is a company whose origin dates back to the 90s, beginning its activity in the Basque Country and expanding in recent years through Madrid, Extremadura and Murcia. He has 30 years of experience in real estate development, having delivered more than 2,000 homes.
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