Update from the originator:
The originator contacted us to inform investors about the latest update regarding the Madrid | Real Project which consists of the purchase of two assets to build storage rooms. One of the assets (The San Sebastián de los Reyes) finally could not be purchased and has been replaced by another one that presents similar characteristics.
The new documentation has been added to the documents section.
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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 granting a loan for the development of a storage and housing development in Madrid. The first project, located in San Sebastián de los Reyes (c / Álvaro Muñoz, 8), comprises 70 storage rooms. The second development consists of 4 homes and is located in Alcalá de Henares (c / Cruz de Guadalajara 14). Both projects are located on the ground floor of two existing buildings.
The San Sebastián de los Reyes Promotion is located in the historic center of the municipality, next to the Reyes Católicos metro station and the Alcobendas - San Sebastián de los Reyes suburban station. The promotion has already begun to be marketed and has 25 of the 70 pre-reserved storage rooms .
The Alcalá de Henares Development is located 500 meters from the University of Alcalá de Henares, in the heart of the municipality, and a 10-minute walk from the Cercanías station. The development has 3 of the 4 reserved homes (two of these homes will be bought by the developer himself for a patrimonial company).
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, Simancas and Hortaleza-Bellas Vistas, already financed on the platform.
In 2017 the company decided to create a new business line specialized in the promotion of parking spaces, storage rooms and homes , finding a clear market niche in the center 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 developments simultaneously. 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 70 storage rooms and 4 homes , 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 begun and there are signed pre-reservations (25 units of the 70 storage rooms in the San Sebastián de los Reyes Project and 3 of the 4 homes in the Alcalá de Henares Project).
The target client of the storage rooms are residents of the neighborhood who are looking for an additional space to their home for the custody of belongings, while that of the homes corresponds to investors interested in their subsequent rental due to the proximity to the University of Alcalá de Henares. However, the developer plans to keep 2 homes of the Alcalá de Henares Project within a patrimonial society for their subsequent rental; that is, only two units will go on sale (one of them already reserved).
Given the nature of the operation, the building license is processed through a Responsible Declaration ; 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 expected 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 developer has already carried out a technical study on the two premises that are the object of the project and consulted the regulations of the Communities of Owners for the development of the operation.
In the case of the Alcalá de Henares Project, a change of use from commercial to residential is necessary. For this procedure, the developer needs a certificate from the Community of Owners of the building where it is located, approving said change. In return, the promoter will compensate with a payment to the Community of Owners.
The operation will be articulated through a company created by the promoter exclusively for the project: JJM EVENTOS 2.0, 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 the following: (more information in the document “Promoter's Report”) :
Regarding the loan repayment guarantees , the debt contract will establish a first mortgage promise on the following properties:
The assets themselves that are the object of the two promotions:
Additional guarantees to the project:
There are several reasons to invest in this project:
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.
There is information available on the market within the documentation, " Sales Witnesses" , where you will find a list of homes and storage rooms for sale in the area.
WHEN WILL I RECOVER THE MONEY INVESTED?
The estimated term of this project is 10 months .
All investments carry risk. We detail the clearest risks that have been 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 receive financing when at least 90 percent of the financing objective has been reached, once the participation in the project that the platform itself may have has been discounted. 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.
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.