BDkapital raises €500,000 from 191 investors to turn a building in southern Gran Canaria into eight homes
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This article is for informational purposes only and does not constitute investment advice or a recommendation of any kind.
A four-storey building in San Bartolomé de Tirajana, in the south of Gran Canaria, will be turned into six homes and two studios with the €500,000 raised on BDkapital. The campaign was completed in five days with the participation of 191 investors and an average contribution of €2,618.
The property is at Calle Brasil, number 55, in a residential area a few minutes from the Playa del Inglés coast and the Maspalomas dunes. The works include converting the existing commercial unit into two homes, relocating the courtyard, installing a lift, fully renewing the installations and reorganising the internal layout. The homes will be around 50 sqm and the studios around 30 sqm. The developer is Proyectos y Estructuras Nedet, S.L., based in El Tablero; according to the fact sheet, its director has developed, built and sold more than 50 homes in the area.
The project is still at an early stage. At the time of the campaign only minor works had begun, under a responsible declaration, and the licence for the main works had been applied for but not granted. The developer has invested around €290,000 so far and has secured five reservations, which are not completed sales. It expects to bring in more than €1.8 million from the sale of the homes, which is how the loan is to be repaid.
The operation is a loan: investors lend money to the developer through the platform, and the developer undertakes to repay it with interest within the agreed term, in this case 14 months, at a target interest rate of 9.5% a year, with principal and interest paid at maturity. The security is a mortgage over the building's four registered plots, valued at €918,550.55 in their current state and €1,732,996.55 once completed. The developer is not the owner of the property: the owner acts as a non-debtor mortgagor. An external company monitors the works and releases funds by milestones.
Investing in real estate crowdfunding carries a 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 Deposit Guarantee Fund cover. No security removes that risk. Non-sophisticated investors have a four-calendar-day reflection period to withdraw their offer without penalty.
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Your real estate crowdfunding, in one app.
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The Realty Investor beta is now available. Explore the market, discover new projects and get to know the platform with simulated money, without putting in any capital.
Download the beta and start discovering a new way to manage your real estate investments.
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