DONE

Arroyomolinos real estate promotion

Profitability

Land development (margin on sales 45% and a return of 22.5% per year).

Investment

Land development with investment from €50,000 – total investment €600,000.

PROJECT INFORMATION

We present a new project that consists of an investment for the development of a residential development in Arroyomolinos in Madrid for 11 plots for single-family semi-detached houses. The manager has already tested the commercial potential and has sold the project to 10 investors from the 11 plots for single-family homes. Each investor will have the right to keep the plots to build their home in accordance with the project presented and approved, or sell it to third parties, at the end of the process, either through the Domain platform, or on their own.

The development is located in Arroyomolinos, south of Madrid. Specifically, it is located on Avenida del Mediterraneo, 300 meters from radial 5. The municipality has all the infrastructures, a large “Xanadu” shopping center, and all services.

Fotos

Interested?

Send us an e-mail if you are interested in this project using the following form and Register in DOMAIN and we will contact you to inform you accordingly.

3 + 2 =

How doest it work?

Domain is a manager of “your smart investment”. We operate in a transparent manner, we seek for the client “the best of their investments, profitability, and management”. All the information that we work with in real time is accessible by the client on our website so that they have no doubts about what we are doing with their investment.

Project description

The promoter of this opportunity is managed by DOMAIN ASSET MANAGEMENT S.L, a company created and directed by specialists from the world of investment and promotion, with more than 20 years of experience. His work focuses on a market niche of small promotions for the client, which are not attractive to the large promoters and usual investment funds in the sector, and which take advantage of the fact that the client can discount a % of the management and optimize their investment. .

The investment is structured as a company and is pre-granted with the fixed-rate loan granted to the vehicle company created by DOMAIN, DOMAIN VEHICLE ASSET MANAGEMENT S.L. (exclusive for this project) so that the promoter or investors can acquire the plot (on which they have signed a deposit contract with the property) and develop the subdivision and urbanization works. The entire project will be financed through a combination of sources: the investor’s own funds and a third-party loan, so the project does not need to resort to bank financing.

The promotion consists of 11 plots for independent semi-detached single-family homes. All single-family homes have three bedrooms, two bathrooms, barbecues and a storage room. In addition, the project includes a community road of almost 300 m2.

The investment of the plots has already begun and is aimed at first homes. The subdivision and urbanization project was presented for approval in December 2020, and is very close to receiving the subdivision and urbanization works license, so the developer plans to start the works during the second quarter of 2021. The developer has signed an earnest money contract on the ground.

Structure

This operation will be structured via investment and debt: Domain Investors invest in the project at the same time that a fixed rate loan is processed to the company, created by the promoter exclusively for the project: DOMAIN VEHICLE ASSET MANAGEMENT SL The financing will go towards the acquisition of the site (the promoter or investment vehicle has a deposit contract with the property) and the financing of the works, together with the contributions of the investors. The promoter has reserved the possibility of canceling the loan in advance (with a penalty).

The main characteristics of the debt are (more information in the Loan Report document):

  • Loan amount: €300,000.

  • Fixed rate loan of 8.5% per year.

  • Loan term: 24 months.

  • Loan interest will be paid at maturity.

  • The loan guarantees are instrumented through a mortgage loan on the plot.

Why invest?

This operation will be structured via investment and debt: Domain Investors invest in the project at the same time that a fixed rate loan is processed to the company, created by the promoter exclusively for the project: DOMAIN VEHICLE ASSET MANAGEMENT SL The financing will go towards the acquisition of the site (the promoter or investment vehicle has a deposit contract with the property) and the financing of the works, together with the contributions of the investors. The promoter has reserved the possibility of canceling the loan in advance (with a penalty).

The main characteristics of the debt are (more information in the Loan Report document):

  • Loan amount: €300,000.

  • Fixed rate loan of 8.5% per year.

  • Loan term: 24 months.

  • Loan interest will be paid at maturity.

  • The loan guarantees are instrumented through a mortgage loan on the plot.

Market

A market study has been carried out to determine if the sales prices proposed by the promoter are reasonable.

Although there are new-build developments in the area, all of them have sales prices higher than those of the DOMAIN project. Approximately 20% above the market price.

In addition, the projects have an elevator and parking spaces, both of which are very scarce in the area and therefore represent an added value for the project.

You can see more information within the documentation, Sales Witnesses, where you will find a list of homes for sale in the area.

WHEN WILL I GET BACK THE MONEY INVESTED?

The agreed term of completion of the project is 24 months, although it is possible that it ends earlier. It must be taken into account that the deadlines depend on the management with the administration and third parties that can cause the deadlines to be extended, so we have been cautious about it.

April 2021, granting of the loan by the lender to the developer.

Second quarter 2021, start of urbanization works.

Fourth quarter 2022, repayment of the loan and interest accrued from the sale of the project.

Risks

All investments carry risk. We detail the clearest risks that we have identified for this project:

  • Risk of not reaching the planned investment rates and, consequently, delays in terms.

  • Risk of not achieving the sales prices expected in the investment business plan.

  • Risk of supervening insolvency of (some of) the investors, who cannot meet the agreed payments on account or cannot access a mortgage.

  • Increase in project deadlines, due to potential delays arising from the administrative management of this type of project (connections, LPO, etc.).

  • Deviation of the fixed costs associated with the investment, unforeseen in construction.

Warnings and risks

Domain Asset Management (Domain) holds the status of an investment services company, but not a credit institution, and, therefore, is not affiliated with any investment guarantee fund or deposit guarantee fund. The information published by Domain on its Website is solely for informational purposes for management.
The financing projects published by Domain on its Website are not subject to authorization or supervision by the National Securities Market Commission or the Bank of Spain, therefore, all the information provided by the promoter in relation to the projects It has not been reviewed by them.
The estimated return on investment is net to the investor. In any case, the withholdings established by tax regulations will be applied to the income obtained, and additionally, a 6% corresponding to the fee of the investment for the management of Domain will be deducted.
The investment in the projects published on this Website may entail certain risks, such as the risk of an increase in the capital invested due to changes in prices or services provided for in the economic analysis carried out by third-party decisions. Therefore, we warn investors to only invest an amount that they are willing to invest, but not to be in a hurry to recover it, as the time in this type of process can sometimes take a long time.

Promoter

Location

Contact

info@domainmanagement.es

(+34) 911 99 41 42

DOMAIN ASSET MANAGEMENT © 2021

All rights reserved