Company history/background
An investor is sought who is willing to invest early in a real estate development project.
At the end of March this year, a parcel of land with buildings in St. Geertruid (L) was purchased with the aim of transforming it into a new small-scale care centre with 13 residential units and a family home. The purchase price was EUR 675,000.
The calculated final value after transformation amounts to 3.6 mln. Euros including VAT. The investor is offered a 10-year lease with 2 x 5-year optional extensions. Rent is in principle budgeted at € 176,000 (BAR 4.8%) but is negotiable. Realisation will take approximately 2.5 years, of which a maximum of 1 year for zoning changes and 1.5 years for construction.
Company activities
The buyers/developers are master franchisers of a care organisation and develop two care complexes of a similar nature in Limburg every year. Each project is carried out within a specially founded company. The 2 developers are the sole owners of the purchasing company. Both are highly experienced entrepreneurs with professional and complementary knowledge in the field of construction, development and financing.
Unique selling points
Sales contract
The purchase agreement has been signed. The valuation report is in the making. A decision in principle has been submitted by the municipality. It is expected that this will be positively assessed. Transfer of ownership will take place after obtaining a positive decision on the principle request.
Investment
Financing of the project is desired by the end investor. Bank financing of the purchased property is possible at 75% LTV at 4.8% annual interest. Preliminary costs for obtaining the environmental permit are estimated at € 209,000 excluding interest. Financing of construction costs (1.461 mln incl. VAT) is possible.
Acquisition of shares in new project BV
The investor takes over the shares of the newly established project company before delivery of the purchased property, including design, for 100,000 Euros. The project company is/will become the owner of the property.
Reason for sale
Developer is working with wealthy capital partners to realise 15 small-scale elderly care homes in the next 5 years. He works with two financing systems, either he resells upon delivery or he is a partner in the development and participates in the project profits.
Other
Suitable for
This company is interesting for (strategic) investors.
General information
- Strategic acquisition
- Investor
Financial information
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