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).

Video of the project

PROJECT DESCRIPTION

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.

STRUCTURE

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”) :

• Loan amount:  € 500,000 .
•  10% fixed rate loan .
• Loan term : 10 months.
• Interest on the loan will be paid upon maturity.

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:

• Local located at Calle Álvaro Muñoz 8, 28700, San Sebastián de los Reyes .
• Local located at Calle Cruz de Guadalajara 14, 28805, Alcalá de Henares.

Additional guarantees to the project:

• Thirty-eight storage rooms acquired as heritage by the developer, free of charge, located at c / Rioja 126, 28915, Leganés.

WHY INVEST?

There are several reasons to invest in this project: 

• The building license is processed as a  Responsible Declaration  and therefore it is not necessary to wait for a favorable report with the Administration to start the works.
• The project will be promoted by a company linked to  GRUPANXON , an entity that has promoted more than 600 storage rooms and garages since 2017. The Real Project will constitute the sixth operation financed by GRUPANXON on the platform.
• Structured operation via loan, where it will not be necessary to wait for the sale of all the units to receive the loan returns.
• Promoting storerooms in San Sebastian de los Reyes has a 35% pre-bookings while s nly 1 house is available from 4 to make the promotion of Alcala de Henares .

MARKET

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 .

• Fourth quarter 2021,  granting of the loan by Urbanitae to the developer and start of the works.
• Third quarter 2022,  end of works and deed of promotions
• September 2022,  repayment of the loan.

RISKS

All investments carry risk. We detail the clearest risks that have been identified for this project: 

• Delay in the sale of storage rooms or homes that make it difficult to repay the loan.
• Diversion of fixed costs  associated with investment, unforeseen events in construction .
• Risk of not achieving the expected sales prices in the Business Plan, which make it difficult to  repay the loan . 

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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.