Project | Brickfy

Menorca IN Fase 1

Platform: INVESLAR
Type: LENDING

Closed for investment

Scheduled

General Information


LENDING

REAL ESTATE

INVESLAR

BB

Annual


Financial Information


€25,000.00

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€0.00

€5.00

16.40 %

--

7.40 %

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Important Dates

366

2020-02-07

2021-02-07


Description

The asset

Inveslar presents to its investors a new investment opportunity in a transaction originated by The Smart Urban Investments. This opportunity offers an estimated expected return of at least 16.40% over a period of 12 months. However, this is in the worst case scenario for the project, as there is a potential buyer with whom the price and conditions of sale have already been agreed, so this operation could be carried out in a considerably shorter period. The fact that this property comes from a judicial auction, means that the interested buyer (with a firm commitment) cannot directly access the purchase of the property. The objective of this investment is the purchase of an industrial building with tenant in the area of Mahon (Menorca) that has been awarded in an auction well below the market price. The funds will also be used to cover the acquisition costs and the payment of outstanding taxes, an essential requirement for the award of this property. The total amount of capital required for the acquisition and awarding is 229,750 euros, the total area of the industrial premises is 914 m2, which means a price of 251.36 euros per m2, which is substantially lower than the prices in the area. Selling price: 350,000 euros



Reasons to Invest

  • Very good profitability in Venta-Flash
  • Minimum ticket of 100
  • Agreement with a potential buyer
  • Profitability from 16.40%.
  • Loan to Value (LTV): 7.14


Location

Sant Lluís is the industrial area of the prestigious municipality of Mahon, known for its beaches, its tourist potential and its shipping industry. Mahón is the capital of the island of Menorca, and has a population of around 30,000, which increases exponentially during the holiday periods. It is very well connected with the rest of the Balearic Islands, with daily ferries and planes. For these reasons, it is a good place, not only for holidaying but also for living, where the price of housing is considerably more affordable than on other islands, and in turn the proximity to the mainland with which it has frequent transport.

Surface: 914sqm


Current status

The property does not require any reform, as it has a tenant and is responsible for the adaptation of the industrial building.


Characteristics

The current offer in the area for these features starts at 302,000 euros - 285 euros per m2 (difference +13.5%), however, the price rises to 389,000 euros - 380 euros per m2 (difference +51%). There are 2 components that provide the safety margin for investors. The duration of the project: it is noted that the developer expects to sell the property within a maximum period of 12 months, however, this duration could be much shorter because there is a commitment to purchase from an interested buyer, with whom the conditions for executing the operation have already been agreed upon as soon as the property is in possession. Another component of the safety margin is the purchase price of the property which, even after taxes and acquisition costs and taxes, is higher than other properties in the area.