Almost a year ago, Fellow Funders announced the opening of its Real Estate division. Such announcement could be possible thanks to the financing of a house flipping project in the Madrid neighborhood of Delicias.
Just a week later, Fellow Funders’ Real Estate division is embarking on its first real estate “foray” beyond Madrid. This foray will take place on Costa del Sol, an area where the sun shines most days of the year for its 1.3 million inhabitants. Thanks to this project, there will soon be 49 families joining this coast in luxury homes in the municipality of San Roque, Cádiz.
Sotogrande: our first real estate development
Fellow Funders is pleased to share with you a real estate project that represents a new milestone for the growth of our Real Estate division. After our first four rounds of house flipping, we are now moving into the field of real estate development. In other words, the acquisition of a plot of land to directly build on it, replacing the conversion of commercial premises for residential use.
The location of the project is unbeatable: the Sotogrande residential complex is in San Roque, just seven minutes from the beach. This complex was founded in 1964 by an American businessman who decided to build a golf club on the land near the mouth of the Guadairo River. The first houses were built around this course. As time went by, new houses, infrastructures, clubs, and even a port were built in the vicinity.
The current census population of Sotogrande is 2,584 inhabitants. However, this figure rises to 12,500 in the summer season. It has some of the best golf courses in Europe, including Valderrama, which hosted the Ryder Cup in 1997. If not enough, the complex offers the best natural landscapes, turning Sotogrande into one of the most coveted urbanizations when looking for a luxury home.
Onys: 40 years in the world of property development
The Onys group, our partner for this project, is aware of all this thanks to its almost 40 years of experience in real estate development. Their projects include the Serrano 5 Building (Madrid) and the Selwo Hills development (Estepona). Onys’ plan calls for building housing units of spacious rooms and large window openings. Thus, their interiors blend in perfectly with the surrounding natural landscape and offer their inhabitants an unbeatable environment.
The spaces meet WELL health and wellness criteria and offer extraordinary comfort to families. In addition, all homes will have at least one storage room and a parking space, along with a heated outdoor swimming pool, gym, gourmet lounge, and coworking space.
Why invest in Sotogrande?
The attractiveness of these 49 luxury homes for potential buyers is obvious, but what about for investors? What are the main reasons for investing in the Sotogrande complex? Some of the factors that have encouraged us to invest in the Onys development are the group’s incredible track record and a pioneering design based on the circular economy. The materials used can be disassembled and returned to the land as a biological nutrient. Thanks to this ESG approach, the project is even more attractive given the increasing importance of ESG investment.
These factors, combined with the ambitious nature of the project, make the development offer much higher potential returns than previous real estate projects we financed. Considering the developers’ target price, the estimated profitability ranges between 63% and 71%. By applying a more conservative price, adapted to the most pessimistic scenarios, the estimated return will vary between 38% and 50%. The payback periods are between 37 and 55 months.
There are plenty of reasons to think that the Sotogrande development will be a turning point in the Fellow Funders Real Estate timeline. No wonder this is the highest funding round we have ever published on our platform, as the target capital is €2,000,000 and a minimum ticket of €10,000. Investing in Sotogrande means investing in real estate, health, wellness, and sustainability. Would you like to join this ambitious project? Invest now through our platform!