This week, we present a new investment opportunity in Cádiz. It will open for funding on Thursday, December 14th at 4:00 PM.
The Alcaidesa Homes project involves the development of a new residential promotion comprising 87 homes.
Situated in La Alcaidesa, a development belonging to the municipality of San Roque east of the province of Cádiz, below Sotogrande.
Caralca, a company with over 50 years of experience in the sector, will promote the Alcaidesa Homes project.
The promoter invests its own capital
With this project, a capital gains strategy will be implemented, involving an alliance with the promoter for the development of a promotion located in La Alcaidesa (Cádiz). Urbanitae investors’ contributions will be delivered to the promoter through a capital increase to the vehicle company that will gather all Urbanitae investors’ contributions in the project. Subsequently, this company will increase capital and formalize a share purchase agreement of the promoter company’s shares.
The promotion involves the acquisition of seven partially constructed blocks from the previous economic cycle. The progress of the work is approximately 30%.
Caralca owns the asset on which the promotion will be developed, to be contributed to the promoter company of the project. The property has a mortgage load from a bank loan that financed part of the acquisition cost. This mortgage load will not be canceled with the entry of capital from Urbanitae investors and the promoter. It will remain in effect until the project is completed, either because the promoter loan is granted by the same bank or replaced by a new bank loan.
The project has a granted construction license for 3 of the 7 mansions in the promotion. Licensing for the remaining homes is expected between the first and second semesters of 2024.
Urbanitae investors’ contributions will be used to support the acquisition costs of the asset and the project’s initial stages until external financing is granted. The manager is currently negotiating with various banks for the formalization of the promoter’s mortgage loan to finance the construction.
Return in 28-32 months
The project is estimated to last between 28 and 32 months. Capital increase and land acquisition are expected between the fourth quarter of 2023 and the first quarter of 2024. Construction work is estimated to begin between the first and second quarters of 2024. Completion of construction, occupancy license, and home delivery are expected between the first and second quarters of 2026. Finally, the company’s dissolution and profit distribution to investors are estimated between the second and third quarters of 2026.
As always, feel free to reach out with any questions about the project at contacto@urbanitae.com or by phone at (+34) 911 23 25 22.
