Mercado Central

For the first time in Housers: opportunity to invest in a hostel in Valencia!

Type of opportunity: Loan 

Modality: Savings

Exceptional opportunity that consists in the financing of a developer for the purchase, reform and management of a boutique hostel in a building in the heart of the historic center of Valencia. There is already an existing operations contract signed with a developer with ample experience in the sector.

We are offering a unique Savings opportunity with unbeatable net yields. The development is scheduled for 10 years, although the intention is to sell in the year 5. 

Additionally, you can sell your investment in the Market Place whenever you want! 

The main points for this opportunity are: 

• The Net Yields: 6% + an additional 2% on behalf of the developer during the first year of operations, reaching an estimated annual rentability of 8,03%.
  
• The Operator: has already signed the operations contract with the hotel chain Bcool Hostels, a hotel chain currently managing more than 10 hotels in the country.
• The contract: the operations contract has a duration of 15 years, with the first 5 years having a mandatory fulfillment.
• The purchase of the building at more than 17% below the market value.

           You can consult the valuation documentation here. 

• The lease income: 150.000€ annually, plus a variable component based on billing.
• The accumulated total net yield, considering the rent and sale, is estimated to be 52,66%
• The investors will receive monthly interests thanks to the signed contract from the promoter with the hotel chain. 

This opportunity is perfect to DI.VER.SI.FY outside of Madrid, and better yet improve your diversification index. In addition, by investing in a Savings opportunity, you will be investing in an opportunity that best presents the rentability-risk relationship. 

Valencia has always been known for attracting a vast quantity of tourists each year.To this day, it continues being a top choice for Spanish tourists and foreigners. 

The community of Valencia was ranked this past July as the second autonomy that increased its number of visitors from 2016, with an increase of 18.1% and 5,1 million foreign tourists, being surpassed only by the Community of Madrid according to INE.

Just in Valencia, there is an expectation to end 2017 with 5 million overnight stays according to Exceltur.

Although tourism presents extraordinary figures in the city, it should be added that, to this day, there is no Hostel of this type (boutique) in Valencia’s city center. 

The hostel will be located in one of the five neighborhoods that makes up the Ciutat Vella district, el Mercat, located in the center of the city. A must for all visitors. The building is situated in one of the most transited streets in Valencia, calle Pie de la Cruz, 13, that leads to the famous Mercado Central, one of the largest markets in Europe.

We’re talking about one of the most tourist filled areas, el Mercado Central. Located in the interior of a pre-modern architectural gem, la Lonja de la Seda, is known as one of the most representative buildings from the civil gothic style in Europe and has been declared as a World Heritage Site by UNESCO. Next to it, you can find the also popular Iglesia de los Santos Juanes, a Baroque style church known for its unique history.

Bcool Hostels claims to be the national and international reference in the sector of establishments aimed for supertravelers, nonconformist travelers who have shifted the tourism sector, and are looking for spaces that fit their vital philosophy. The first of these hostels opened in Bilbao this past July, and its expansion plan is to open in new cities over the next three years. 

The building will be interiorly renovated, conserving the exterior façade while fully refurbishing the interiors including the furniture and decoration of the whole building. The result will be a hostel that is adequate to the needs of the Hostel Chain with the ends of being able to exploit it from the very start. 

Following the renovation, the hostel will consist of five floors (ground level + 4 floors), with 20 bedrooms with 3 to 10 beds, with a total of 134 beds. It will be distributed into:

• The ground floor will be the common area for guests, next to a cafeteria-bar, a large kitchen and several common areas next to the lobby. This floor will also include a bedroom and bathroom. 
• The first floor will have 4 bedrooms and 2 bathrooms.
• The rest of the floors will have 5 bedrooms and 2 bathrooms each.

*This information is subject to change, given that the project may suffer variations-restrictions due to the licensing process.

The renovation will be entirely done under the turnkey model, which means that there will be no risk of deviation.

The works on the building are estimated to be completed in 12 months and from this moment the investor will start to receive interest thanks to the signed operations contract.

Why invest in Mercado Central?

• Unbeatable location, in the heart of the city center, it has a constant demand from tourists.
• Annual Net Yield estimated from the rent is 6,03%.
• Liquidity: at any point you can sell your investment through the Market Place.
• Just in Valencia, there is an expectation to end 2017 with 5 million overnight stays according to Exceltur.
• The tourism sector constitutes at a regional level of around 13% of the GDP according to the INE.
• In 2016, there was 7,83 million tourists that visited the Community of Valencia according to the INE.

On the following image you can see the relationship between the risk and the rentability of these type of investment opportunities, Savings.

Don’t miss out on this exceptional opportunity to invest!

Location