THE OPPORTUNITY
Type of opportunity: Loan
Modality: Development Loan1 with Flex Contract2
Profitability: 7.50%3 in 10 months
The second stage of a project of 350,000 euros4 (a total of two phases are foreseen). Although it is a project by sections, the duration of the sections will be conditioned by the financing of the first section with all the sections having the same expiry date as it is a single project.
We present Foz Beach Houses II, a development loan1 opportunity, which consists in the granting of a loan to a developer to finance the purchase and completion of a private complex, 80% completed, of six single-family houses, divided into two three-storey buildings in Foz do Arelho, Portugal.
REASONS TO INVEST IN FOZ BEACH HOUSES II
- The project present a unique location.
- 80% of the construction has been completed!
- 33.3% has been sold.
- IRR: 68%
- ROI: 95%
- The scoring of this opportunity is AA. For more information click here.
LOCATION
The project is located in Foz do Arelho, a coastal village belonging to the municipality of Caldas da Rainha in Portugal.
Highlights of the location:
- Foz do Arelho Beach is a magnificent beach located at the confluence of the "Lagoa" and the sea, it is the bathing area par excellence of Caldas da Rainha. A place of great beauty whose shores are covered with dense vegetation and whose calm waters are ideal for children and for the practice of windsurfing;
- Caldas da Rainha is the city of the thermal baths that attracts many tourists every year due to the beauty of the place. The region, which is an area of museum relevance, is also of great gastronomic richness;
- The project is located only 60 km from Lisbon..
THE PROJECT
The project consists of completing the construction of a private complex, 80% completed, of six single-family houses, divided into two three-storey buildings in Foz do Arelho. Each three-storey house of 210 m2 is diveded into:
Basement:
- 2 parking spaces, bathroom and storage area;
Ground floor:
- Living room, dining room, kitchen, bathroom and a service room with storage area;
First Floor:
- Master bedroom with walk in closet and bathroom en suite, 2 double bedrooms with shared bathroom;
Outside is a front porch and at the rear a large south facing private terrace with BBQ. To finish the units the following will be required: bathroom fittings, kitchen door cabinets, kitchen appliances, heating and cooling system, new paint, tiles, lighting, etc. The land requires entrance and parking areas, walkways, final connection to the city sewerage and electricity, repair of the interior of the pool and reinstallation of the equipment.
The opportunity is very well located, very close to the main shops, restaurants and beaches.
THE PROJECT DEVELOPER
The development company, VERTICELILÁS UNIPESSOAL LDA has extensive experience in the Madeira real estate market and is characterized by working with leading specialists in the industry in their respective fields.
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Risk information: Housers is neither a credit institution nor an investment services firm. Investment in projects published by HOUSERS is not covered by any investment fund. This project has not been supervised by the CNMV nor by the Bank of Spain or any other regulator, Spanish or foreign. The information provided by the developer has not been checked by the CNMV nor does it constitute a prospectus approved by the CNMV. Housers does not provide financial advice that nothing on this website should be construed as such. The investment in this project involves the following risks: risk of total or partial loss of invested capital, the risk of not obtaining the expected monetary return and the risk of illiquidity for recover the investment. The project developer accumulates 0 project in the platform, although the first tranche of this project has been financed The project developer is responsible for the information it has provided to the participatory finance platform for the project on the website. The promoter has a share capital as of 29/12/2020 of 5,000€ and equity at 29/12/2020 of 20,500€ so that its finantial responsibility regarding the project is limited to this amount. Due to the limited equity of the company, the Housers commission is financed within the project. In this way, it is the investor who supports the Housers commission. The maximum term to invest in this opportunity may be extended by an additional 25% to the term initially planned, in accordance with the Law for the Promotion of Business Financing. Likewise, HOUSERS will be able to close the financing of this opportunity/project when it has been financed by 90%. These possibilities that the legislation offers to the platform, will be used when the typology and characteristics of the project advise it so that it can be carried out with less funding than requested and the implementation periods are not affected.
1) Development Loan: 10-month fixed rate loan to the real estate developer where interest is distributed monthly and the principal is amortized at the end of the project. The interest is not guaranteed.
2) Flex Contract: The Promoting Company may activate an extension of a single duration of 6 months to the expiration date of the contract, communicating it to Housers at least one month in advance. This extension will be accompanied by an increase on the interest rate agreed on the return of capital, resulting in this project, an annual interest of 9,5% during the extension. This information is found in more detail in Article 3.3.1 of the Loan Agreement.
3) It is the total return on investment. It takes into account the total term of 10 months and the annual fixed interest agreed by the promoter. For more details see the Promoter's Report.
4) According to article 68.2 of Law 5/2015 for the Promotion of business financing, "The maximum amount of fundraising per participatory financing project through each of the participatory financing platforms may not exceed 2,000. 000 euros, being possible the realization of successive rounds of financing that do not exceed the aforementioned amount in annual calculation. When the projects are directed exclusively to accredited investors, the previous maximum amount may reach 5,000,000 euros. "
