The Pozuelo Project will involve the purchase of a plot of land for the later construction of two villas.
The construction of these two properties will follow an Opportunistic strategy. In this way, it will be possible to obtain very valuable assets of a renewed aspect, allowing investors to acquire new properties.
This strategy allows obtaining very attractive assets with a renewed aspect, allowing investors to generate low-risk returns after the sale of the assets.
The development plot is in Pozuelo de Alarcón (Madrid). The location is one of the project's strengths as it is in one of the areas with the highest per capita income in Spain. For this reason, its prime location will make the marketing of the properties easier.
The surroundings are residential and bordered by green areas, villas, townhouses, and low-rise buildings.
The resulting properties will be approximately 400 square meters per unit. Each property will have a semi-basement, a garden, and a swimming pool.
The Toro de Piedra development team, a highly qualified and versatile group of people with extensive knowledge and experience in the real estate sector, will be in charge of the project's development. Gallardo Llopis Group, a company with over 40 years of experience, will design the architecture of this project. Thanks to these companies, the project will benefit from the added value of such professionals.
This development will require a total investment of €2,420,695. Of this total amount, €610,000 will be raised through Equity Crowdfunding, and €300,000 will be contributed by the developers. Additionally, there will be a loan of €1,211,400 for which the developers have offers from different banks. On the other hand, the early sale of the properties will finance the construction work for an amount of €299,295.
Regarding a more conservative view of the project, the construction work is not expected until the sale of both properties. There are already several interested parties in the properties.
The round amount will finance the construction work to be executed through the Special Purpose Vehicle (SPV) established for the project development. Investors will enter as shareholders in this SPV, which means that the investors own 100% of the investment vehicle and the asset (the principal collateral for the business).
We must bear in mind the Conservative Scenario on which the business has been modeled, i.e., any possible deviations in costs, terms, or sales prices are more likely to be in favor.
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Socio Director de Bullrock Investment en la actualidad. Director Comercial durante dos años en Grupo Moraval. Ha sido analista financiero tanto en Knight Frank como en CBRE durante tres años. Ha trabajado como Bussiness Angel de varias Startups, entre ellas Biohope, Chargy, Nware y Cerby.LinkedIn
Actual Socio Director de JMA Management. Ha trabajado como CEO de Grupo Perteo durante cinco años y de SEOP, Obras y Proyectos, además de Director de Zona en el mismo grupo, Jefe de Obra tanto en SEOP como en Dragados. Además de haber sido Director de Racing Santander durante once años.LinkedIn
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The area of influence presents a rating of 83% (Fragua- Atlas RE) in sales, with few vacant homes and low unemployment, presenting a high investor attractiveness.
The market starts from €3,488/sqm to €3,628/sqm, including assets to be refurbished and refurbished, considering that there is little supply of new construction.
The selected area has high prices, low supply, and moderate liquidity, which causes a low stock turnover. Given that there are no crucial differences depending on the state of the properties, the conservation state does not play an essential role in the area (as seen in the graph below). There are currently few newly built properties in the area.
This project will require a total investment of €2,420,695. Investors will enter as shareholders in the Special Purpose Vehicle (SPV) created for the project, owning 100% of the investment vehicle and the asset (main business guarantee).
Of the total capital required, €610,000 will be raised via Equity Crowdfunding (private investors). A developer loan will provide €2,476,678 (the developers have offers from different banking institutions). On the other hand, the early sale of the properties will finance the construction work for an amount of €299,295.
Our Scoring relies on a transversal evaluation of the business, evaluating the different metrics that we obtain from our financial analysis, its structuring, the possible intrinsic and extrinsic risks, the analysis of the environment, and the developers' experience.
According to this analysis, the company obtains a B- rating.
Project: The project will require a total investment of €2,420,695. Of this amount, €610,000 will be financed via Equity Crowdfunding (private investors). These private investors will enter as shareholders in the Special Purpose Vehicle (SPV).
Capital Structure: the project structuring will acquire 50% through a bank loan and the other 50% from the developer and Fellow Funders investors (33% and 67%, respectively).
Developer: One of the strengths of the project. The developer team has extensive experience in the sector.
Market: The market study indicates a high level of investor attractiveness due to the scarce supply of this type of new construction assets and the high average income level in the area.
Financial Risk: Although there is a bank loan, the financial risk is reduced since the developers have offers from different entities. In addition, their many years of experience in the sector play to their advantage in granting the loan.
El plazo de inversión comenzará cuando se protocolice la Amplicación de Capital.
Once the capital increase finishes with the new partners from the crowdfunding round, the investors will own the majority of the equity of the Special Purpose Vehicle created for the business, turning into the owner of the assets.
This report is worth 99 euros
|Total investment||2.420.695 €|
|Minimum ticket||1.000 €|
|Total estimated profitability||39 %|
|Annual IRR||15 %|
|Estimated term||28 months|
|Type of property||Real state development|
|Location||C/ Juan Pablo ll|