Invest in real estate in Cádiz with granted permit

New project on Urbanitae! In this case, we travel to Cádiz to present a new opportunity to invest in new construction housing with a granted license. It will be next Wednesday, February 21, at 4 p.m. (UTC+1). We’ll tell you everything you need to know.

The Cervantes project involves the purchase of two adjacent buildings in the center of Cádiz for rehabilitation and the development of a new construction promotion. The project involves the construction of 27 multi-family homes with one to three bedrooms and an average built area of ​​over 90 square meters.

The asset is in the historic center of Cádiz, less than ten minutes from San Antonio Square, the Cathedral, and La Caleta Beach.

One of our most profitable developers

The developer of this investment opportunity is Fenext, a well-known name on our platform. Fenext has been the new name for Carpio Capital since March 2023, responsible for the Pinares I and II projects, also in Cádiz. Both projects experienced some delay – one of them in the midst of the pandemic – which they more than compensated for with the business plan. Pinares I closed with a final return of over 47% and an IRR of 21%. Pinares II achieved a total return of 58%, with an IRR of 23%.

The project also has other strong points. Perhaps the clearest is that it already has a valid construction license (for the two buildings that make up the asset), which limits the risk of the timeframe.

The developer needs bank financing both to carry out the work and to complete the purchase of the asset. In this case, Fenext has already negotiated the conditions for this financing with a financial institution and has a signed purchase contract for both properties. In addition, they have already paid 10% of the purchase price. With the bank entering the property purchase, the risk associated with financing the works is mitigated.

The third of the key points is commercial progress. 12 of the 27 homes that make up the development are already sold, which means there is already a 44% reservation, all with signed contracts and the capital already disbursed.

Capital gains strategy at 26-30 months

The Cervantes project is an equity project, specifically focused on capital gains. Therefore, Urbanitae investors will partner with the developer to, in this case, buy the asset where the promotion will be developed.

The project’s ticket amounts to 1,670,000 euros, 5,000 of which will remain in the vehicle company to cover administrative and management expenses. The developer contributes 10% of the capital.

As in any capital gains project, the supervisor does not allow us to advance the estimated return figure. However, it can be calculated easily with the formula: (Projected Income – Projected Expenses) / Total Equity. All data is available on the project’s profile.

In this video, Jorge Vidal, Director of Development and Project Management at Fenext, and Diego Bestard, CEO of Urbanitae, explain the key points of the Cervantes project.