Property Development Project on Costa-Blanca, Spain
We are happy to present an opportunity to develop a plot of land with a residential complex and a commercial centre. The plot is located on the famous Costa Blanca coast, in Spain, between Benidorm and Finestrat, where the construction and sale of the most sought-after residential complexes of the region are underway. From the plot there are picturesque views of the sea. Buyers of surrounding residential properties are citizens of Spain, the UK, other EU, Asia and America.The total area of the plot is 85,000 sq.m., with an allocation to build 26,000 sq.m of residential development and 3,000 sq.m - for a commercial centre.
There are all necessary licenses obtained:
- 170 apartments with shared swimming pools, parks, sports and playgrounds;
- 70 separate villas with private pools, each each villa plot is around 500 sq.m..
- Construction of a shopping centre, the only one in the district, to provide the necessary services for the people in the district with food stores, restaurants, various service offices, a bank and a petrol station.
Preliminary works have already been completed to bring communications lines, to divide the territory and pave roads.
Economics of the project
Cost of land €8 Million incl. taxes to be refunded through VAT filing.
Cost of residential development app. €1,000 per sq.m.
- The construction of the whole residential complex will be around of €29 Million.
- Sales of 170 apartments, averaged at €150,000-180,000 will total €25.5 Million.
- Sales of 70 villas, averaged at €450,000-€550,000 will be around €31.5 Million.
Sales of residential real estate will achieve a total of around €57 Mil. Cost of commercial development €3 Million.
Completed, the centre can be sold for around €5 million oroperated on a lease returning annually €500,000. Initial investment to start the project: €10 Million, the remainder is to be financed either privately by the owners or via borrowed funds (around 2.5-3.0% p.a.) The project is to be implemented within four years. The economic profitability is around 20% per year, as well as the subsequent annual profit from the lease of commercial space. There is a group of companies is ready to assume the responsibility for managing the entire project from the very beginning to its full implementation. Tenders for contracts with architectural studios and construction companies are ready to be held. Contracts for the implementation of all sales and the selection of the necessary tenants on a competitive basis, to launch the commercial centre are also ready on a short notice.
Architectural solutions of projects that are recommended to be built in this region.
