Villafranqueza Project | Alicante

• Debt project in Villafranqueza, Alicante

• Single Tranche Amount: €1,380,000 // Term: 12 months

• 12.5% Simple annual interest | 12.5% Total return 

• Minimum interests equivalent to 6 months

•      First rank mortgage on the underlying asset of the project.

•      Pledge of the collection rights of the net profit obtained from the delivery of ongoing promotions for an estimated amount of c. €1.4m.

We present a new project that consists of the granting of a bridge loan to finance part of the purchase price of two plots located in the Villafranqueza neighborhood, Alicante. The loan also finances the total structuring costs accrued by Urbanitae financing. The developer/manager will pay the remaining purchase amount, as well as the purchase of a third adjoining plot, and costs derived from the acquisition of the asset, through Own Funds. The expected loan repayment event will occur when the bank grants the developer loan once (i) the building license has been obtained and (ii) the pre-sales threshold required by the bank has been reached. 

Once the asset is acquired, the 3 registry farms will be aggregated to its parent farm through a Responsible Declaration and the Building License will be requested. The manager estimates a period of between 4 - 5 months for the granting of the License that allows the construction of the new building, since the basic project has already been presented to the ECUV, the body that replaces the technical study of the Alicante city council. 

The project contemplates the development of a residential promotion of 67 homes, 61 parking spaces and 58 storage rooms distributed on the ground floor + 3 floors above ground and 2 floors below ground. With a total buildability of 4,110m², the project contemplates the development of 1 and 2 bedroom homes. The sale price €/m² has been contrasted with a market study carried out by a reputable independent advisor and the estimated sale price set by the developer is congruent with the conclusions of the study. The asset is very well located, less than 3km from the University of Alicante.

Villafranqueza is a neighborhood in Alicante, with an approximate population of 8,000 inhabitants. It is located just 6 km from the urban center of Alicante and less than 10 minutes by car from the University of Alicante, constituting a strategic enclave within the metropolitan area.

The area has a consolidated residential fabric and basic service facilities (schools, sports facilities, neighborhood facilities), complemented by new promotions that reinforce its demographic dynamism. Its immediate proximity to the A-7 and A-70 highways ensures excellent connectivity both with the provincial capital and with the Mediterranean economic axis.

These characteristics, together with its expanding residential character, place Villafranqueza as an area with increasing attractiveness for real estate development aimed at families and young people linked to the academic and work activity of Alicante.