- Significant equity contribution: The pledged property is already being developed with the developer’s own funds. To date, EUR 8,184,883.85 has been invested in the project, including land acquisition and construction works.
- Strong collateral package: The loan will be secured by the ongoing residential project “Residencial Seaview 6”, located in Finestrat, Alicante region. The project comprises 28 villas and 11 terraced houses. According to the value determined by an independent valuer, the current market value of the pledged project amounts to EUR 12.7 million, providing substantial collateral for the proposed financing.
- Experienced developer: “ESPHOUSES” has been active in residential construction and development since 2002. Over 24 years of operation, the group has developed 839 real estate units and completed projects with a total built area of 80,412 m², with the total value of developed projects exceeding EUR 114 million. This experience demonstrates the developer’s ability to consistently implement larger-scale residential projects in the Costa Blanca region.
Interest rates by investment amount:
– From 100 EUR to 299 EUR – 8.00%
– From 300 EUR to 699 EUR – 8.20%
– From 700 EUR to 1 999 EUR – 8.50%
– From 2 000 EUR to 6 999 EUR – 8.75%
– From 7 000 EUR to 24 999 EUR – 9.00%
– From 25 000 EUR to 49 999 EUR – 9.30%
– From 50 000 EUR to 99 999 EUR – 9.60%
– From 100 000 EUR – 10.00%
Important: individual investments are not aggregated and cannot be combined.
Project overview:
The project owner pledges the actively developed residential project “Residencial Seaview 6”, located in Finestrat, Alicante region. The project comprises 39 residential units – 28 villas and 11 terraced houses – with a total area of 5,446.48 m². According to the valuation report, the current value of the pledged project amounts to EUR 12,713,873.55, while its value under the completed-building hypothesis amounts to EUR 36,689,886.04. To date, EUR 8,184,883.85 of the developer’s own funds has been invested in the project. The project continues to be developed with the owner’s own funds.
The requested bridge loan will be used to acquire two land plots in Alicante. Neither plot currently has a building permit. One of the plots is located at Calle Colombia 5, with an acquisition price of EUR 3,300,000, of which EUR 800,000 has already been paid from the project owner’s own funds. The second plot is located at Calle Teulada 78, with an acquisition price of EUR 2,000,000. The total acquisition value of both plots amounts to EUR 5,300,000.
Financing structure:
The loan will be disbursed in tranches. The initial disbursement will amount to EUR 1,250,000, while the total approved financing limit for the full loan term will be up to EUR 5,000,000. Subsequent loan tranches will be used in line with the progress of acquiring the specific land plots. This is a bridge financing transaction: the loan is provided to enable the project owner to acquire the land plots before obtaining building permits and securing long-term project financing. Once the permits have been obtained, the loan is expected to be refinanced through financing provided by a bank or another credit institution for the development of the future projects.
Importantly, the loan security is not based solely on the newly acquired land plots, for which building permits have not yet been obtained. The collateral is the actively developed “Residencial Seaview 6” project, into which the project owner has already invested a substantial amount of own funds.
Market and developer’s operations:
“ESPHOUSES” has been active in the Costa Blanca residential real estate market since 2002. The company has offices in Guardamar del Segura, Alicante, Benidorm–Finestrat and Altea. Its long-standing presence in the region provides the developer with local market knowledge, an established sales infrastructure and access to an international buyer base. The pledged “Residencial Seaview 6” project is being developed in Finestrat, Alicante region. Reservations for residential units have already been recorded within the project.
Loan information:
The loan is planned to be repaid through refinancing after obtaining financing from a bank or another financial institution. An alternative repayment source is proceeds from the sale of other real estate projects developed and marketed by the project owner. Interest will be paid from the company’s operating income.
Maximum financed amount: EUR 5,000,000. The amount may be raised in stages. Please note that the loan amount will be transferred to a notary’s escrow account before the mortgage agreement is signed. The notary will disburse the loan amount after the mortgage agreement has been signed and mortgage priority has been obtained. Registration of the mortgage may take up to several weeks after the disbursement of funds. Interest for investors will begin to accrue from the date the mortgage agreement is signed, in accordance with standard Spanish market practice.
The targeted amount is planned to be raised within 7 days, with an option to extend the funding period to 30 days if the full amount is not raised.
About the Profitus
Profitus is a crowdfunding and investment platform with a minimum investment of 100 euros. Profitus investments are secured by real estate mortgages, Your investment is secured by a first or second mortgage on the property, as well as by other collateral (e.g. a surety or guarantee). Transactions are managed through Lemonway, a regulated payment service provider.
Profitus is a crowdfunding and investment platform whose main goal is to make investment available to everyone. Investments start at 100 euros, and the platform is open 24/7. Investments are secured by pledging real estate and other collateral (e.g., indemnity or warranty). Different projects have different security tools that users can access in self-service for each project.
Profitus consults with the Bank of Lithuania in order to ensure perfect compliance with the law. Profitus operates with Lemonway, a regulated payment service provider.
