|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.
We present you a new project that consists of the development of a new residential building with 10 homes with 2 and 3 bedrooms in Villa de Vallecas (Madrid) . The project is located on Calle Sierra de Arla 7 , in the Historic Center of Vallecas, located in the southeast of the city of Madrid, between the M-40 and the M-45 and next to the A-3.
In addition to the 10 homes, the development has 10 parking spaces and 10 storage rooms. The average price per home is € 228,500, including a garage and storage room.
The Historical Center of Vallecas is the most populated neighborhood of the three that make up the Villa de Vallecas district, with more than 40,000 inhabitants. Located in the southeast of the city of Madrid, the town has a wide public transport network (Metro line 1 - Congosto, Bus, Cercanías - Vallecas) that connects it with the historic center of Madrid in less than 15 minutes.
OXMANTOWN HOMES is a real estate developer-builder group formed by professionals with more than 20 years of experience in the development of turnkey real estate projects, including new construction developments, rehabilitation and reform of homes, commercial premises and offices in Madrid, Ávila, Soria and Asturias. In addition, the group provides consulting services in investment and real estate asset management.
The group's activity is divided into two main business lines:
In total, the company has managed assets worth more than € 38,000,000. In addition, OXMANTOWN HOMES also provides consulting and intermediation services in the sale of land and real estate assets, having advised transactions worth more than € 45,000,000 to date.
The project has a capital gains strategy, which consists of an alliance with the developer for the acquisition of a site in the Historic Center of Vallecas, Madrid, where the development will take place. The contribution of Urbanitae investors will be structured through a capital increase, in the vehicle company that develops the project: URBANITAE SPV CINCO, SL
OXMANTOWN HOMES has formalized an exclusive deposit contract with the current owner of the land (financial institution). The CV Public Deed will be formalized in the fourth quarter of 2021. The developer has optimized the execution project that the current owner of the land drew up, increasing the number of homes in the promotion from the 7 initially contemplated to the current 10, taking advantage of a remnant of buildable that had not been exhausted.
The project has a building license granted . The developer has presented a modified execution project that includes the proposed housing expansion and that will be ratified by the City Council in the coming months. No complications are foreseen for its ratification since the modified project only changes the interior layout and does not affect the structure of the project.
The works, which will be carried out by OXMANTOWN HOMES , will begin immediately after the capital increase and sale of the site. The contribution of Urbanitae investors will be used to acquire the land and to bear all the expenses derived from the project, including the entire development of the work . The start of construction is not compromised by the ratification of the modified execution project since the building permit approved by the City Council allows the carrying out of said works.
The commercialization of the homes will begin simultaneously with the start of the works and will be managed by OXMANTOWN HOMES.
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. The operation does not plan to resort to bank financing . All farms are free of charges.
During construction, the Promoter, once the sale of the homes has been achieved. You can apply for a mortgage loan to finance construction. In this way, investors will be able to receive part of their investment in advance, optimizing it financially. This fact is not guaranteed and has not been foreseen within the business plan agreed with the Promoter.
The promoter will be dedicated to the integral management of the promotion, execution of the work and commercialization. He will also be an investor in the project, contributing c.5% of the total investment capital .
There are several reasons to invest in this project:
The promoter expects to generate a total income of 2,285,000 euros from the sale of the promotion. In total, a net profit is estimated for the Urbanitae investor (after expenses and taxes) of around 21% in an approximate period of 18-20 months .
In the event that the project generates an additional capital gain on the profitability foreseen in the Business Plan, a variable remuneration scheme has been agreed with the promoter, which you can consult in the attached Economic Summary .
A market study has been carried out to determine if the sales prices raised by the developer are reasonable. Currently there is hardly any supply of similar new construction in the area.
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 18-20 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 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||€ 618,000||€ 772 / m 2|
|Solar cost||€ 600,000||€ 750 / m 2|
|Legal costs||€ 18,000||€ 22 / m 2|
|General Costs||€ 1,007,166||€ 1,258 / m 2|
|Construction Cost||€ 781,443||€ 976 / m 2|
|Other Costs||€ 225,723||€ 282 / m 2|
|Urbanitae Commission (s / VAT)||€ 111,605||€ 139 / m 2|
|Total investment||€ 1,821,000||€ 2,276 / m 2|
|Promoter contribution||€ 100,000||€ 125 / m 2|
|Urbanitae investors contribution||€ 1,721,000||€ 2,151 / m 2|
|Total revenue||€ 2,111,122||€ 2,638 / m 2|
|Sale of 10 homes||€ 2,285,000||€ 2,856 / m 2|
|Marketing and Advertising||€ 46,878||€ 58 / m 2|
|Corporate Tax Forecast||€ 127,000||€ 158 / m 2|
|Total profitability||21 %|
OXMANTOWN HOMES is a real estate developer-builder group formed by professionals with more than 20 years of experience in the development of turnkey real estate projects, including new construction developments, rehabilitation and reform of homes, commercial premises and offices in Madrid, Ávila, Soria and Asturias.