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Edificio Castrillo

PROJECT SUMMARY

  • Purpose: to finance the costs associated with the real estate development and construction of a building with seven dwellings and commercial premises.
  • Location: Las Palmas de Gran Canaria, Gran Canaria, Spain.
  • Type of opportunity: loan.
  • Type: Fixed rate.
  • Scoring: A
  • Guarantee: A first-rank mortgage registered in the land registry.
  • Loan To Value (LTV): 53.62%.
  • Nominal annual interest rate: 9%.
  • Return on the opportunity: 13.5%.
  • Maturity: 18 months.
  • Type of capital repayment: at maturity.
  • Interest payment: quarterly.
  • Minimum investment: €300.
  • Sales: the commercial premises and one of the dwellings have already been sold.


PROJECT

We present to you Edificio Castrillo this project is aimed at developing and building a development of seven dwellings plus commercial premises, in Las Palmas de Gran Canaria, Gran Canaria, Spain.

The development is distributed over six floors.

  • Ground Floor Commercial Premises
  • First to Fifth Floor 5 dwellings with living room-kitchen-bedroom-bathroom.
  • Sixth floor one flat with two bedrooms, living room, kitchen and two bathrooms.

Top quality materials, cover the entire façade with materials that guarantee aesthetic quality, durability, and minimal maintenance.

The total built area of the development is 438.72 m2.

Building permit granted, pending change of ownership. Application submitted in July 2022.

This loan of €200,000 corresponds to the first tranche of a single project of €600,000 (three tranches of the project are planned).


FINANCIAL OVERVIEW

Resumen financiero


DESCRIPTION OF THE MORTGAGE COLLATERAL

The property provided by the developer as mortgage guarantee is the property which is the object of the project located at Calle Castrillo 10, Las Palmas de Gran Canaria, Gran Canaria (Spain).

According to the valuation certificate issued by Arco on 02/08/2022 the current mortgage value/valuation of the described property amounts to the amount of 372.930,06€.

Therefore, the valuation of the mortgaged property on the loan is 186,46% (Mortgage value 372.930,06€ / Loan amount 200.000€). The LTV (Loan To Value) of the project is 53.62% (loan amount €200,000/current appraised value €372,930.06).  The estimated value of the property in a completed scenario according to the comparison method amounts to € 1,094,105.71.


GUARANTEE AGENT

The Security Agent chosen for this project is Monk Advisor S.L., a professional firm with extensive experience in financial sectors providing advisory services and fiduciary services in the issuance of bonds, warrants or other securities. Monk Advisor S.L. is not affiliated with any financial services group.


DEVELOPER

The developer of the project is the company Edificio Castrillo 10 S.L., a recently created company, belonging to Grupo Reformas y Proyectos Lopsan S.L., a group linked to the construction sector in the building sector in both new construction and reforms, rehabilitation and maintenance, with own funds of €754,217.92 as of 31/12/2021 and with numerous projects developed in the area. Among them, the San Telmo project financed on 31 May 2022 by Housers investors and which is currently up to date with payments. The Castrillo Building project is therefore the second project of the promoter group in Housers. The developer may apply in the future for other loans through the platform to obtain financing for the completion of other projects, within the legal limits and provided that its financial situation allows it. Thus, the degree of future leverage of the company may therefore be higher.


PROJECT MONITORING

The monitoring company PROYECTOS CIGA will carry out the monitoring of this project, having permanent control of the destination of the capital provided by the investors and delivering this capital to the developer according to an agreed schedule after delivery of justification of compliance with certifications. To this end, the developer and the monitoring company will open a escrow account where the funds financed by the investors will be transferred in such a way that each provision to the developer must be justified to the monitoring company and therefore the full amount of the loan will not be delivered to the developer at once.


AREA

Building located in Calle Castrillo 10, Las Palmas de Gran Canaria, Gran Canaria, Spain.

Less than 2km from the seafront promenade.

The environment of marked residential character, within the urban nucleus of the capital of the island, is characterised by multi-family buildings with:

  • Commercial area on the ground floor.
  • Recreational area.
  • Welfare facilities.
  • Sports facilities.
  • Green areas.


PROJECT FEE

Housers will not charge any fee to the investor for this opportunity. The developer will be charged a fee that is determined based on a % of the funds raised for the project, provided that the project is successfully closed, i.e., that the funding target published on the platform is reached. In case it is not successfully closed, Housers will not charge this fee. Once the campaign is finished and as a previous step to the delivery of the money to the developer, this commission is deducted from it in favour of Housers. It does not affect the final profitability obtained by the investors, since the developer is the one who assumes its cost. In this opportunity, Housers' commission is 6.5% + VAT being the commission financed within the opportunity.


WARNINGS

Housers follows the law 5/2015 and is authorised by the CNMV as a Participatory Financing Platform registered under number 20.

Housers is not a credit institution or an investment services company. It is not a member of any investment guarantee fund or deposit guarantee fund. Therefore, the invested capital is not covered by these funds.

Housers is neither a credit institution nor an investment services company nor does it supply financial advice, so nothing on this website should be interpreted as such. The information on this page is for general information purposes only and does not constitute specific advice.

The participatory financing projects published on the website are not subject to authorisation or supervision by the Comisión Nacional del Mercado de Valores or the Bank of Spain or any other national or foreign regulator. The information provided by the developer has not been reviewed by the CNMV and does not constitute a prospectus approved by the CNMV. 

The developer of the project is responsible to investors for the information it has provided to the crowdfunding platform for publication within the project on the website. The information shown has been prepared by Housers based on available information provided by the developer. Neither Housers nor its collaborating companies or suppliers accept responsibility or liability concerning the accuracy or sufficiency of the information referred to in the project. The statements or declarations with future projections refer exclusively to the date on which they were expressed, they do not form any guarantee of future results.

Both the financing aim and the maximum term to invest in this opportunity may be extended by an added 25% to the initially planned term, following Law 5/2015, of 27 April, on the promotion of business financing. Likewise, Housers will be able to close the financing of this opportunity/project when it has been 90% financed. These possibilities that the legislation offers to the platform will be used when the typology and characteristics of the project make it advisable so that the execution deadlines are not prejudiced. You can find more information here.


RISK

Before investing in this project, the investor must know the risks of his investment: Housers recommends carefully reading the Basic Information for the Investor.

In compliance with art. 61 of Law 5/2015 on the Promotion of Entrepreneurial Financing, Housers proceeds to inform the investor of the risks that he/she will run by investing in this project:

Risk of total or partial loss of the invested capital: the main risk associated with any type of investment is the total or partial loss of the money invested, as well as the probability that the return obtained, will be lower than expected or estimated. In general, the higher the return on an investment, the higher the risk.

Risk of not obtaining the expected financial return: there is no such thing as a safe investment. There is always a risk of losing everything invested or of not obtaining the expected financial return. Investments are based on future expectations that may not necessarily be realized, so the expected financial return on the investment may never occur or may occur differently than expected.

Operational risk: failures or problems in systems, people or operational flows can have a significant impact on the investment. In any activity in any market, there is always an operational risk.

Inflation risk: the possibility of rising inflation may cause the return on investment to decline due to the inevitable loss in the value of money in such circumstances.

Risk of Lack of liquidity: investing in this project may mean that the investor may not be able to dispose of the money invested when needed, having to pay attention to the estimated timeframe for the liquidity of the investment and obtaining the corresponding return.

Risk of not being able to influence the management of the developer: investors, as borrowers, like any other person outside a commercial company, have no right to influence the management of the developer or its assets unless this is provided for in the investment contract, and the investment contract may influence the developer's management of the developer.

Fraud risk: as in any other economic operation, there is a risk of fraud due to improper use of the money obtained for the project. To minimize this risk, the drawdowns of the loan amount that are delivered to the developer will be made using a company external to Housers that will check the progress of the project, making the drawdowns to the developer according to a calendar of drawdowns and after administratively verifying the fulfilment of each earlier milestone of the calendar. The amounts of the loan not drawn down by the developer while waiting to reach the next milestone of the drawdown calendar will always be in the Housers Account of the developer in the payment entity used by the platform ("Lemonway") until the developer requests the drawdown, which will be authorized by the monitoring company if the developer meets the requirements established by the monitoring company.

The invested capital is not guaranteed by the investment guarantee fund or the deposit guarantee fund.

Investment in real estate should be conducted as a diversification strategy of a larger portfolio, and investment in projects published on the Housers platform is not recommended for people who do not have sufficient knowledge to understand the risks of investing in projects published by the crowdfunding platform.


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Location


Floorplan


Las Palmas de Gran Canaria | 1 building
ES
Phase:
Project Funded
Financed capital:
200,000 €
Financing goal:
200,000 €
Investors:
243
Term:
18 months
Type:
Development loan
LTV:
53.62 %
Annual yield:
9.00 %
Total yield:
13.50 %
Minimum investment:
300 €
Status:
Without incidence
Visible only to investors in the opportunity.