|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.
Purpose of the loan
We present a new project that consists of the acquisition of a garage space already built for its subsequent adaptation and configuration into 44 parking spaces, located within a residential car park already built in the Eixample district (Barcelona) .
The project is located on Avenida de Roma No. 40 , located just 600 meters from the Joan Miró Park and 5 minutes from the Sants Estació metro station. It is a consolidated residential area, surrounded by services such as schools, a commercial area (Sant Antoni Market and La Boqueria Market) and 3km from the Port of Barcelona (where San Sebastián Beach and the Barcelona Aquarium are located).
The Eixample district occupies the central part of the city and is the most populated district in Barcelona (around 265,000 inhabitants). Eixample includes some of the best-known streets and squares in Barcelona, highlighting the Paseo de Gracia, the Rambla de Cataluña and the Plaza de la Sagrada Familia.
The promoter of this opportunity, URBIGLOBAL GROUP, is a company linked to the development and construction sector since the 1980s. Within its work areas, investment and construction activities stand out. The promoter is the integral manager of the opportunity, including the adaptation and commercialization of the final product ( more information about the promoter can be found in the documentation area).
The project materializes in the purchase of six independent registry properties from an asset company from a bank, located inside an existing garage space, already enabled and in operation. The users of the other adjoining squares of the same car park are the residents of the buildings on the block.
The project has a capital gains strategy, which consists of the alliance with the developer to face the acquisition of the properties and the costs of adaptation and sale of the 44 parking spaces, without the need to resort to bank financing. The contributions of Urbanitae investors will be delivered to the developer through a capital increase to the vehicle company that develops the project: Garaje Urbiglobal Roma, SL
The promoter has already carried out a technical study on the space and consulted the mandatory community regulations for the development of the operation. The developer has reached an agreement with the community of owners to use the infrastructure of the existing car park that serves the squares. Within this agreement, the developer, in return, will make improvements to the existing general car park. The project already has a building license, so once the capital increase has been completed, the developer will be able to start the works immediately. The work is scheduled to last for about 8 months and the project as a whole for a maximum of 12 months, including the process of deed and delivery of the final units.
The commercialization of the 44 parking spaces will be offered to the Community of Neighbors on a preferential basis, at an initially agreed price. The community has demanded within the negotiation of the agreement a preferential sale of the squares at a price fixed to the residents of the existing buildings. If there are surplus places that have not been sold to the neighbours themselves, they will be marketed freely.
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 contributions will allow the complete development of the development, including the acquisition of the properties, their subsequent reform and all the costs derived from it. The operation does not plan to resort to bank financing . All farms are free of charges.
The promoter will be dedicated to the integral management of the promotion, reform, and commercialization. He will also be an investor in the project, contributing about 29% of the total investment capital.
There are several reasons to invest in this project:
The developer expects to generate a total income of 1,213,500 euros with the sale of the promotion. In total, a net profit is estimated for the Urbanitae investor (after expenses and taxes) of around 1.14 CoC in an approximate period of 12 months.
A capital distribution has been agreed with the Promoter that encourages it to optimize the return on invested capital. The capital contributed by both Urbanitae investors (c.71% of the capital) and by the developer (c.29% of the capital) will be remunerated at 14% per year, net of corporation tax. The additional capital gains generated by the project on said profitability will be distributed with the promoter under the following structure: 50% of the excess for Urbanitae investors, 50% for the promoter.
A market study has been carried out to determine if the sales prices raised by the developer are reasonable. There are no garage promotions in the area. In addition, as mentioned above, the promoter has agreed with the Community of Neighbors to the preferential sale of the seats at an agreed price.
There is information available on the market within the documentation, "Sales witnesses", where you will find a list of garages for sale in the area.
The estimated term of this project is 12 months.
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:
|Total Purchase||€ 560,000||€ 532 / m 2|
|Solar Cost||€ 550,000||€ 523 / m 2|
|Legal costs||€ 10,000||€ 9 / m 2|
|General Costs||€ 313,450||€ 298 / m 2|
|Reform||€ 201,989||€ 192 / m 2|
|Other Costs||€ 111,461||€ 106 / m 2|
|Urbanitae Commission (s / VAT)||€ 43,550||€ 41 / m 2|
|Total investment||€ 947,000||€ 901 / m 2|
|Promoter contribution||€ 277,000||€ 263 / m 2|
|Urbanitae investors contribution||€ 670,000||€ 637 / m 2|
The promoter of this opportunity, Urbiglobal Group , is a company linked to the development and construction sector since the 1980s. Its areas of work include investment and construction activities. The promoter is the integral manager of the opportunity, including the adaptation and commercialization of the final product.