- Advanced stage of construction: The villa is already approximately 70% complete, meaning that most of the construction work has been carried out. The investment concerns a partially constructed property, with approximately 30% of the works remaining. This allows for a clearer assessment of the project's current condition, the scope of the remaining works and the costs required for completion. The project is being taken over by a local developer with experience in the Altea area and similar projects.
- Low LTV ratio: The loan-to-value (LTV) ratio at this financing stage is 37%, while the maximum planned LTV for the project is 70%.
- Significant equity contribution: The project owner plans to invest EUR 400,000 of their own funds, representing approximately 23% of the total project costs. At this financing stage, the owner's equity contribution will equal the amount planned to be raised through the PROFITUS platform – EUR 400,000 each.
About the Project
The project owner intends to acquire and complete the construction of a detached villa in the Sierra de Altea residential area, in the province of Alicante, Spain. The villa is currently approximately 70% complete.
Construction of the villa began in 2018 under a Dutch developer. However, due to personal circumstances, the previous owner suspended construction and is now seeking to sell the unfinished property. According to the project manager's assessment, the agreed acquisition price is below the property's market value, creating an opportunity to take over a project at an advanced stage of construction on favourable acquisition terms.
The local real estate developer taking over the project has experience in the Altea area and similar developments. The developer plans to complete the remaining construction works and sell the villa. The search for a buyer is expected to begin while construction is still ongoing, with the aim of concluding a sale before the project is fully completed.
The projected revenue from the sale of the villa is EUR 2,200,000.
Project Location and Sales Potential:
The villa is located in Sierra de Altea, an upscale residential area of detached houses situated at the foot of the Sierra de Bèrnia mountains, in Spain's Costa Blanca region. The area is characterised by its hilly landscape, private villa developments, green surroundings and peaceful residential environment. The nearby village of Altea la Vella offers access to a golf club, restaurants and essential everyday amenities.
Altea is one of the well-known residential and holiday destinations on the Costa Blanca, attracting interest from both domestic and international property buyers. The upscale detached villa segment is particularly relevant to buyers seeking privacy, spacious accommodation and the opportunity to live or spend holidays in the Mediterranean region.
The international pool of potential buyers, established detached villa market and attractive residential environment provide favourable conditions for the property's sale.
Purpose of Financing:
A total of EUR 800,000 is planned for this financing stage, of which EUR 400,000 will be contributed by the project owner from their own funds, while the remaining EUR 400,000 is planned to be raised through the PROFITUS platform. The funds raised, together with the project owner's equity, will be used to acquire the villa, cover taxes and expenses associated with the property acquisition transaction, and finance the initial development works.
Loan Information:
The loan will be repaid from the proceeds of the developed property's sale. Interest will be paid from the company's working capital.
The maximum planned financing amount for the project is EUR 1,300,000. The planned loan agreement term is 18 months. Funds may be raised in stages, and the duration of this financing stage is 18 months. The project will be financed based on the current valuation of the mortgaged property until the established maximum loan-to-value (LTV) ratio is reached. Once the maximum LTV is reached, a new property valuation will be required. Further financing stages will only be launched and funded if the established maximum LTV is not exceeded.
Please note that before the mortgage agreement is signed, the loan amount will be transferred to the notary's escrow account. The notary will release the loan funds after the mortgage agreement has been signed and a first-ranking mortgage has been secured. Registration of the mortgage after the disbursement of funds may take up to several weeks. Interest for investors will begin accruing from the date the mortgage agreement is signed, in accordance with standard Spanish market practice.
We plan to raise the target amount within 7 days, with the possibility of extending the fundraising period to 30 days if the full amount is not collected.
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.
