Holiday Club/Rental Project in Spain

Opportunity Snapshot

  • Country: Spain Spain
  • Industry: Real Estate
  • Stage: Expansion/Growth
  • Investment size: $10,000,000 / min. $500,000

Investment Opportunity

We have an opportunity to buy a developed complex with finance from the bank and then run it as a holiday club/rental.

The complex is near Marbella, Costa Del Sol, Spain which is a location with great advantages.

Currently there are 100 finished units, 20 of which are furnished and were being rented out very successfully. We can see rental history.

The developer is a very large South American company with over 25 years building experience in Spain. The complex is built 25 years ago but is still in excellent condition.

The Bank has financed the project but the project is a large-scale one and the bank is keen to spread/reduce their risk.

We will set up agreements with local golf courses and beach clubs and put in place a full rental programme which would give a good income stream and then sell the units in a few years or even look at selling on a fractional ownership basis.

In terms of the price, the average prices per 2 bed units were originally €330k and now the intention is to sell them at around €230k. I think we could do a deal with the developer and the bank where we can purchase at or below 200k.

If we can put in €5m the bank would fund the rest and we could buy all 100 units. The Bank would probably be also receptive to good terms, e.g. an interest only for a 3-5 year period.
We are at a very early stage of the project development. Buying at the current prices will ensure a good capital appreciation in the next few years.

Competitive Advantage

The Bank would finance the deal at below market valuation which will ensure great capital appreciation and good rental income.

Rationale for the deal

We're in at the early stage and can mould the project to suit. Fantastic opportunity that our strategic partner has negotiated with the bank and will make huge capital gains in the next 5 years. Strategic partner in Spain with 20 years experience.

Use of financing

Funds will be used and geared together with the bank finance to buy the whole complex and expand to greatly enhance the value and rental income.

Opportunity for the investor

The Investor will be involved in a fully asset-backed project coupled with a national bank financing. Expected ROI is 100% in 5 years and getting annual coupon payments is also possible.

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