Type of opportunity: Loan
Modality: Development Loan1 with Flex2
Profitability: 10.50%3 in 14 months (9%4 in 12 months)
The third stage of a project of 500.000 euros5 (a total of three phases are foreseen).
We introduce you to Sestriere III, a new Italian development loan1opportunity that consists of granting a loan to a project developer to finance part of the construction costs of 12 appartments for second homes or tourist use in the famous Italian ski resort, Sestriere.
THE PROJECT DEVELOPER
The project developer is SGS Immobiliare, a Turin-based company with extensive experience in real estate. The promoter has already successfully financed the first two phases of this project and The Factory. It has a share capital at 31/12/2019 of €10,500 and equity at 31/12/2019 of €12,481.
The opportunity involves financing part of the construction of 12 exclusive appartments of various sizes ranging from studios to four-room flats, all with terraces offering 360° views of the mountains.
This is the only new building in the centre of Sestriere, adjacent to the famous central square and close to the ski lifts.The total built area will be 1,000 m2.
MONITORING OF THE PROJECT
ARGOS will carry out the monitoring of this type of projects so that there will be a permanent control of the destination of all the capital contributed by investors.
REASONS TO INVEST IN SESTRIERE III
- The developer already has the building licence;
- The developer is the owner of the building;
The project is located in Sestriere, an Alpine village in the province of Turin, in the Piedmont region of northern Italy.
- It is one of the most famous and prestigious tourist resorts in the Alps. It has a large ski area and all the services for skiing;
- Sestriere sits at the heart of one of Europe’s biggest ski areas known as the Via Lattea (Milky Way). There are 146 skiable pistes which together total 390km of runs, of which 120 km are covered with snowmaking facilities;
- The resort hosts regular Skiing World Cup events and was the heart of the Alpine skiing world in 2006 when the Olympics were held in Turin;
- Famous summer resort thanks to numerous sports facilities such as the 18-hole golf course.
1) Development Loan: 16-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 10% 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 14 months and the annual fixed interest agreed by the promoter. For more details see the Promoter's Report.
4) It is the annual return on investment. It takes into account the 12 month term and the annual fixed interest agreed by the promoter. For more details see the Promoter's Report.
5) 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". The non-financing of one of the phases of the project means the return of the rest of the phases financed, as it is a singular project.
April 13, 2021