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Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
We present you a new project that consists of the development of the first phase of a new construction development in the Puerto de la Cruz sector (Santa Cruz de Tenerife). It consists of 143 homes with 2 and 3 bedrooms distributed over five floors, all of them with a garage. The development will have large common areas, including a community pool , reception area and concierge, premises for a social club and gym, as well as garden areas.
The development is located in the municipality of Puerto de la Cruz , on the island of Tenerife, 25 kilometers from Tenerife North airport and 35 kilometers from Santa Cruz de Tenerife, the capital of the province. In particular, the promotion is located on Camino Las Tapias street, in the heart of the municipality and next to the Hotel Botánico.
The project will be carried out on the only residential action unit pending development in the center of Puerto de la Cruz. The resulting farms are the result of a process of more than 15 years of urban-administrative development managed by the developer.
Puerto de la Cruz is a municipality located in the north of the island of Tenerife, next to La Orotava, and connected to Santa Cruz de Tenerife and the Tenerife North airport through the TF-5 highway. With more than 30,000 inhabitants, Puerto de la Cruz is the eighth municipality with the largest population on the island.
The promoter of this opportunity, GRUPO ARTAL , is a company with more than 50 years of experience in the real estate sector. The group, based in Zaragoza, has developed more than 50 new-build residential developments since 1968. Within the group's real estate activity, five main areas of action are distinguished: officially protected housing, free residential, collective residential action units, industrial buildings and architecture and interior design.
In total, GRUPO ARTAL has delivered more than 360 officially protected homes, more than 660 collective homes and more than 515 homes, with a special presence in Aragon, Navarra, Catalonia and the Canary Islands. In addition, the company has experience in the industrial sector, specifically in the construction and promotion of car dealerships (reform and construction for brands such as Toyota, Ford, Porsche and Saab, both in Zaragoza and Teruel). Furthermore, GRUPO ARTAL is dedicated to managing a network of concessions within the leading automotive sector in Aragon.
The project has a capital gains strategy, which consists of an alliance with the developer to cancel the charges that weigh on the site in Puerto de la Cruz, Tenerife, where the 143 homes will be developed. The contributions of Urbanitae investors will be structured via a capital increase, to the vehicle company that will group Urbanitae investors : ORDESA ALQUILER DE INMUEBLES, SL, in turn, this vehicle will invest directly in the promoter company together with the promoter. The promoter plans to modify the company name of the vehicle, prior to the capital increase.
The project has a building license granted in August 2021 . The works will begin immediately after the signing of the mortgage-developer loan. The promoter has an agreement with a bank for the formalization of said loan, which will finance the construction of the project.
Regarding commercialization, the promoter has signed a reserve contract for 65 of the 143 units that make up the project (45%).
The operation will be structured via a capital increase, where both the developer (from their own investment vehicle) will provide the land and Urbanitae investors will contribute capital, which will be used to pay off the debts that currently tax the project's property . The operation plans to resort to bank financing for the development of the work (promoter mortgage loan).
GRUPO ARTAL will be dedicated to the integral management of development, construction, and commercialization. He will also be an investor in the project, contributing c.41% of the total investment capital.
There are several reasons to invest in this project:
The developer expects to generate a total income of 3,473,406 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 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.59% of the capital) and by the promoter (c.41% of the capital) will be remunerated at 15% per year, net of corporation tax . The additional capital gains generated by the project on said profitability will be distributed with the promoter under a capital structure that can be consulted within the documentation " Economic Summary" .
A market study has been carried out to determine if the sales prices raised by the developer are reasonable. The promoter accredits experience in the development of promotions with similar characteristics in the environment. The promotion has 45% of the reserved units .
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 .
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 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.
PROJECT CARRIED OUT BY
Grupo Artal is a company with more than 50 years of experience in the real estate sector. The group, based in Zaragoza, has developed more than 50 new-build residential developments since 1968. Within the group's real estate activity, five main areas of action are distinguished: official protection housing, free residential, collective residential action units, industrial buildings and architecture and interior design .