BDkapital Raises €425,000 in Six Days for Eight Detached Homes in Tamaraceite, with 178 Investors
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BDkapital completes the €425,000 raise for eight detached homes in Tamaraceite (Las Palmas), over 18 months and with a target interest rate of 9.5% per annum
This article is for informational purposes only and does not constitute investment advice or a recommendation of any kind.
Eight detached homes in Tamaraceite, in Las Palmas de Gran Canaria, have raised €425,000 of financing on BDkapital in six days. That is the time it took 178 investors to cover the target, with an average contribution of €2,388 and a pace of €49 per minute.
The developer is Kraftwerk, a company belonging to the Canary Islands group Elevaciones Archipiélago, incorporated in 2020, with two employees and €3,020 of share capital, which has already built the “La Galera” development in the same area, also financed on BDkapital. It holds both the land and the building licence.
Construction has not yet started: the money raised will be used to begin it, with a build period that the developer expects to be under 18 months and its own contribution of €650,000. There are four signed reservations and no completed sales; marketing will continue as construction progresses, and the listing puts the sale price for this type of home in the area at around €340,000 per unit. Disbursements to the developer are released by milestones verified by an external company, and any undrawn funds remain in the payment institution's account.
The deal is a loan: investors lend the money to the developer through the platform, and the developer undertakes to repay capital and interest in a single payment at maturity, at 18 months, with a fixed target interest rate of 9.5% per annum that accrues from the date of the investment and not from the signing before a notary. The listing also adds an “opportunity return” of 15.25% for the entire term, above the 14.25% that results from applying that same rate over eighteen months. The main security is a mortgage over the property, valued today at €609,714 — the loan is equivalent to 69.7% of that value — and at €2,713,702 once the works are completed, where the ratio falls to 15.7%. This is supplemented by a joint and several guarantee from another group company, which the listing names in two different ways in two sections.
Investing in real estate crowdfunding carries the risk of losing part or all of the capital: the money is tied up until maturity, the return is not guaranteed and there is no cover from the Deposit Guarantee Fund. No guarantee eliminates that risk, and the speed of the raise does not anticipate how the deal will end. Non-sophisticated investors have four calendar days of reflection in which to revoke their offer without penalty.
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