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VALUATION REPORT
Flexshare Spanish Real Estate Portfolio
Flexshare España S.L.
Date of Valuation: 31st December 2018
TABLE OF CONTENTS
1. VALUATION REPORT 3
1.1 VALUATION REPORT 4
1.2 SCHEDULE OF MARKET VALUES 9
1.3 SCOPE OF WORK & SOURCES OF INFORMATION 14
1.4 VALUATION ASSUMPTIONS 16
2. PROPERTY REPORT 19
This valuation report (the “Report”) has been prepared by CBRE Valuation Advisory
Services S.A. (“CBRE”) exclusively for Flexshare España S.L. (the “Client”) in accordance
with the terms of engagement entered into between CBRE and the client (“the Instruction”).
The Report is confidential to the Client and any other Addressees named herein and the
Client and the Addressees may not disclose the Report unless expressly permitted to do so
under the Instruction.
Where CBRE has expressly agreed (by way of a reliance letter) that persons other than the
Client or the Addressees can rely upon the Report (a “Relying Party” or “Relying Parties”)
then CBRE shall have no greater liability to any Relying Party than it would have if such
party had been named as a joint client under the Instruction.
CBRE’s maximum aggregate liability to the Client, Addressees and to any Relying Parties
howsoever arising under, in connection with or pursuant to this Report and/or the
Instruction together, whether in contract, tort, negligence or otherwise shall not exceed the
amount agreed as fee level.
Subject to the terms of the Instruction, CBRE shall not be liable for any indirect, special or
consequential loss or damage howsoever caused, whether in contract, tort, negligence or
otherwise, arising from or in connection with this Report. Nothing in this Report shall
exclude liability which cannot be excluded by law.
If you are neither the Client, an Addressee nor a Relying Party then you are viewing this
Report on a non-reliance basis and for informational purposes only. You may not rely on
the Report for any purpose whatsoever and CBRE shall not be liable for any loss or damage
you may suffer (whether direct, indirect or consequential) as a result of unauthorised use
of or reliance on this Report. CBRE gives no undertaking to provide any additional
information or correct any inaccuracies in the Report.
None of the information in this Report constitutes advice as to the merits of entering into
any form of transaction. If you do not understand this information, we recommend you
seek independent legal counsel.
1 VALUATION REPORT
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
4
1.1 VALUATION REPORT
CBRE Valuation Advisory S.A.
Edificio Castellana 200 Pº de la Castellana, 202 8ª
28046 Madrid Switchboard +34 91 598 19 00
Fax + 34 91 556 96 90
Report Date 1st January 2019
Addressee Mr. Ake Olofsson
Flexshare España SL
Urb. Los Jaralillos
Hacienda del Señorío de Cifuentes Bl. 20 apt. G4
29679 Benahavis
The Property Residential portfolio comprising finished units, work in
progress and land located
Property Description The assets under appraisal comprises:
• 99 finished apartments in phase I (out of the
238) and 2 apartments from phase II, in the
Urbanización Hacienda Señorio de Cifuentes,
Benahavis (Málaga, Spain)
• land for additional 5 blocks (60 apartments)
with 8,064.3 sqm of buildable floorspace. in
the Urbanización Hacienda Señorio de
Cifuentes, Benahavis (Málaga, Spain)
• Plots A, B and C at Centro Forestal Sueco. The
property is included in sector PA-NG-1 “Centro
Forestal Sueco”, located in the area of the
Golden Mile, Marbella.
• Amapura plot: Plot for single villa 6B-2-2.
Supermanzana J-K-L, Nueva Andalucía,
Marbella, with a surface of 831 sqm for the
development of a single villa
• Plots 15 and 86 at Los Flamingos for the
development of single villas, with an area of
1,583 and 1,360 sqm respectively.
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
5
• One plot of land in Lomas de Rio Verde, just
adjacent to Centro Forestal Sueco (Marbella),
with an area of 3,728 sqm
Ownership Purpose Investment/Development
Instruction To value on the basis of Market Value the freehold
interest in the Property as at 31st December 2018 in
accordance with our terms of engagement dated 18th
December 2018
Valuation Date 31st December 2018
Capacity of Valuer External.
Purpose Internal use/Accounting/Tax
Market Value *see schedule of values below.
Our opinion of Market Value is based upon the Scope
of Work and Valuation Assumptions attached, and has
been primarily derived using comparable recent market
transactions on arm’s length terms.
We have valued the Properties individually and no
account has been taken of any discount or premium
that may be negotiated in the market if all or part of the
portfolio was to be marketed simultaneously, either in
lots or as a whole.
Compliance with Valuation Standards
The valuation has been prepared in accordance with
the RICS Valuation – Global Standards 2017 which
incorporate the International Valuation Standards and
the relevant RICS national or jurisdictional supplement
(“the Red Book”).
We confirm that we have sufficient current local and
national knowledge of the particular property market
involved, and have the skills and understanding to
undertake the valuation competently. Where the
knowledge and skill requirements of The Red Book
have been met in aggregate by more than one valuer
within CBRE, we confirm that a list of those valuers has
been retained within the working papers, together with
confirmation that each named valuer complies with the
requirements of The Red Book.
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
6
Special Assumptions None
Assumptions The property details on which each valuation is based
are as set out in this report. We have made various
assumptions as to tenure, letting, town planning, and
the condition and repair of buildings and sites –
including ground and groundwater contamination – as
set out below.
If any of the information or assumptions on which the
valuation is based are subsequently found to be
incorrect, the valuation figures may also be incorrect
and should be reconsidered.
Variation from Standard Assumptions
None
Verification We recommend that before any financial transaction is
entered into based upon these valuations, you obtain
verification of the information contained within our
report and the validity of the assumptions we have
adopted.
We would advise you that whilst we have valued the
Properties reflecting current market conditions, there
are certain risks which may be, or may become,
uninsurable. Before undertaking any financial
transaction based upon this valuation, you should
satisfy yourselves as to the current insurance cover and
the risks that may be involved should an uninsured loss
occur.
Valuer The Property has been valued by a valuer who is
qualified for the purpose of the valuation in accordance
with the RICS Valuation – Professional Standards (The
Red Book).
Independence The total fees, including the fee for this assignment,
earned by CBRE Valuation Advisory S.A. (or other
companies forming part of the same group of
companies within Spain) from the Addressee (or other
companies forming part of the same group of
companies) are less than 5.0% of the total Spain
revenues.
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
7
Disclosure The principal signatory of this report has continuously
been the signatory of valuations for the same addressee
as this report since 2016.
Conflicts of Interest We confirm that we have had no previous material
involvement with the properties, and that copies of our
conflict of interest checks have been retained within the
working papers.
Reliance This report is for the use only of the party to whom it is
addressed for the specific purpose set out herein and
no responsibility is accepted to any third party for the
whole or any part of its contents.
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO 8
Publication Neither the whole nor any part of our report nor any
references thereto may be included in any published
document, circular or statement nor published in any way
without our prior written approval of the form and context
in which it will appear.
Yours faithfully
Fernando Fuente
MRICS
Vice-president
RICS Registered Valuer
For and on behalf of
CBRE Valuation Advisory S.A.
Andres Moreno
MRICS
Director
RICS Registered Valuer
For and on behalf of
CBRE Valuation Advisory S.A.
T: +34 91 514 39 32 T: +34 95 276 51 30
E: fernando.fuente@cbre.com E: andres.moreno@cbre.com
CBRE Valuation Advisory, S.A.
T: +34 91 514 39 18
F:+ 34 91 556 03 60
W: www.cbre.es
Project Reference: VA18-0595
Report Version: Standard Valuation Report template_06.2018 English
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
9
1.2 SCHEDULE OF MARKET VALUES We are of the opinion that the Breakdown of Market Values of the Freehold interest in the
apartments as at 31st December 2018 are:
No. OF
ORDER
Land
Registry
Number
Block Floor Door Existing
Number Bedrooms
Built
Internal
(sqm)
Terraces
(sqm)
Market
Value (€)
1 11639 1 g/f 1 G:01 3 127.64 68.23 385,000
2 11641 1 g/f 3 G:03 2 103.00 53.18 309,000
3 11644 1 1 6 1:02 2 103.00 44.61 279,000
4 11646 1 1 8 1:04 2 108.67 58.10 303,000
5 11647 1 2 9 2:01 2 118.67 48.20 346,000
6 11651 2 g/f 1 G:01 3 129.64 68.23 390,000
7 11652 2 g/f 2 G:02 2 103.00 53.18 309,000
8 11653 2 g/f 3 G:03 2 103.00 53.18 309,000
9 11654 2 g/f 4 G:04 3 127.64 68.23 385,000
10 11655 2 1 5 1:01 2 118.67 58.61 327,000
11 11657 2 1 7 1:03 2 103.00 44.61 279,000
12 11658 2 1 8 1:04 2 118.67 58.61 327,000
13 11659 2 2 9 2:01 2 118.67 48.10 346,000
14 11660 2 2 10 2:02 2 103.00 32.93 293,000
15 11662 2 2 12 2:04 2 118.67 48.10 346,000
16 11663 3 g/f 1 G:01 3 127.64 68.23 385,000
17 11666 3 g/f 4 G:04 3 127.64 68.23 385,000
18 11667 3 1 5 1:01 2 118.67 58.61 327,000
19 11668 3 1 6 1:02 2 103.00 44.01 279,000
20 11669 3 1 7 1:03 2 103.00 44.61 279,000
21 11672 3 2 10 2:02 2 103.00 32.93 293,000
22 11675 4 g/f 1 G:01 3 127.64 78.23 393,000
23 11676 4 g/f 2 G:02 2 103 53.18 309,000
24 11677 4 g/f 3 G:03 2 103 53.18 309,000
25 11678 4 g/f 4 G:04 3 127.64 68.23 385,000
26 11679 4 1º 5 1:01 2 118.77 58.61 327,000
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
10
No. OF
ORDER
Land
Registry
Number
Block Floor Door Existing
Number Bedrooms
Built
Internal
(sqm)
Terraces
(sqm)
Market
Value (€)
27 11682 4 1º 8 1:04 2 118.77 58.61 327,000
28 11683 4 2º 9 2:01 2 118.77 48.1 346,000
29 11687 5 g/f 1 G:01 3 127.64 78.23 393,000
30 11691 5 1º 5 1:01 2 118.77 58.61 327,000
31 11695 5 2º 9 2:01 2 118.77 48.1 346,000
32 11696 5 2º 10 2:02 2 103 32.93 293,000
33 11697 5 2º 11 2:03 2 103 32.93 293,000
34 11701 6 g/f 3 G:03 2 103 53.18 309,000
35 11703 6 1 5 1:01 3 127.64 49.64 342,000
36 11706 6 1 8 1:04 3 127.64 49.67 342,000
37 11709 7 g/f 1 G:01 3 127.64 78.23 393,000
38 11710 7 g/f 2 G:02 2 103 53.18 309,000
39 11711 7 g/f 3 G:03 2 103 53.18 309,000
40 11712 7 g/f 4 G:04 3 127.64 78.23 393,000
41 11713 7 1º 5 1:01 3 127.64 49.74 342,000
42 11714 7 1º 6 1:02 2 103 44.71 279,000
43 11715 7 1º 7 1:03 2 103 44.71 279,000
44 11716 7 1º 8 1:04 3 127.64 49.74 342,000
45 11739 10 g/f 1 G:01 3 127.64 78.23 423,000
46 11741 10 g/f 3 G:03 2 103 53.18 333,000
47 11742 10 g/f 4 G:04 3 127.64 78.23 423,000
48 11743 10 1º 5 1:01 2 127.64 58.71 378,000
49 11744 10 1º 6 1:02 2 103 44.71 303,000
50 11745 10 1º 7 1:03 2 103 44.71 303,000
51 11751 11 g/f 1 G:01 3 127.64 68.23 415,000
52 11754 11 g/f 4 G:04 3 127.64 68.23 415,000
53 11756 11 1 6 1:02 2 103.00 44.61 303,000
54 11757 11 1 7 1:03 2 103.00 44.61 303,000
55 11762 11 2 12 2:04 2 118.67 48.10 373,000
56 11763 12 g/f 1 G:01 3 127.64 78.23 423,000
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
11
No. OF
ORDER
Land
Registry
Number
Block Floor Door Existing
Number Bedrooms
Built
Internal
(sqm)
Terraces
(sqm)
Market
Value (€)
57 11764 12 g/f 2 G:02 2 103 53.18 333,000
58 11765 12 g/f 3 G:03 3 103 53.18 333,000
59 11767 12 1º 5 1:01 2 118.77 58.71 355,000
60 11768 12 1º 6 1:02 2 103 44.71 303,000
61 11769 12 1º 7 1:03 2 103 44.71 303,000
62 11774 12 2 12 2:04 2 118.77 48.1 373,000
63 11777 13 g/f 3 G:03 2 103.00 53.18 333,000
64 11778 13 g/f 4 G:04 3 127.64 68.23 415,000
65 11787 14 g/f 1 G:01 3 127.64 78.23 423,000
66 11789 14 g/f 3 G:03 2 103 58.18 337,000
67 11790 14 g/f 4 G:04 3 127.64 78.23 423,000
68 11791 14 1º 5 1:01 2 127.64 49.74 371,000
69 11793 14 1º 7 1:03 2 103 44.71 303,000
70 11794 14 1º 8 1:04 2 127.64 49.74 371,000
71 11800 15 g/f 4 G:04 3 127.64 78.23 423,000
72 11801 15 1º 5 1:01 2 118.77 58.61 355,000
73 11802 15 1º 6 1:02 2 103 44.71 303,000
74 11803 15 1º 7 1:03 2 103 44.71 303,000
75 11804 15 1º 8 1:04 2 118.77 58.61 355,000
76 11807 15 2º 11 2:03 2 103 32.93 316,000
77 11810 16 g/f 2 G:02 2 103.00 53.18 333,000
78 11812 16 g/f 4 G:04 3 127.64 68.23 415,000
79 11815 16 1 7 1:03 2 103.00 44.61 303,000
80 11816 16 1 8 1:04 2 118.67 58.61 354,000
81 11821 17 g/f 1 G:01 3 127.64 68.23 415,000
82 11824 17 g/f 4 G:04 3 127.64 68.23 415,000
83 11825 17 1 5 1:01 2 118.67 58.61 354,000
84 11833 18 g/f 1 G:01 3 127.64 78.23 393,000
85 11839 18 1 7 1:03 2 103 44.71 279,000
86 11840 18 1 8 1:04 3 127.64 49.74 342,000
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
12
No. OF
ORDER
Land
Registry
Number
Block Floor Door Existing
Number Bedrooms
Built
Internal
(sqm)
Terraces
(sqm)
Market
Value (€)
87 11845 19 g/f G3 G:03 2 103 53.18 333,000
88 11844 19 g/f 2 G:02 2 103 53.18 333,000
89 11855 20 g/f 3 G:03 2 103 53.18 333,000
90 11856 20 g/f 4 G:04 3 127.64 78.23 423,000
91 11857 20 1º 5 1:01 2 118.77 58.61 355,000
92 11858 20 1º 6 1:02 2 103 44.71 303,000
93 11861 20 2º 9 2:01 2 118.77 48.1 373,000
94 11866 21 g/f 2 G:02 2 103.00 53.18 333,000
95 11867 21 g/f 3 G:03 2 103.00 53.18 333,000
96 1869 21 1 5 1:01 2 118.67 58.61 354,000
97 11870 21 1 6 1:02 2 103.00 44.61 303,000
98 11874 21 2 10 2:03 2 103 32.93 316,000
99 11875 21 2 11 2:04 2 103 32.93 316,000
100 11889 23 g/f G1 G:01 n/a 127.67 78.23 403,000
101 11890 23 g/f G2 G:02 n/a 103 53.18 310,000
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
13
Land
Property Municipality Province Land
Classification
Permitted use Land Area
(m²s)
Buildable Area
(m²t)
Market Value
31.12.2018 (€)
Land at Hacienda Señorio Cifuentes
(Urb Jaralillos) - for 60 apartaments
Benahavis Málaga Urban Land Residential
8,064.30 7,500,000
Plot A PA-NG-1- Centro Forestal
Sueco
Marbella Málaga Developable
Land
Residential 13,663 2,459.16 6,300,000
Plot B PA-NG-1- Centro Forestal
Sueco
Marbella Málaga Developable
Land
Residential 13,631 2,453.58 6,300,000
Plot C PA-NG-1- Centro Forestal
Sueco
Marbella Málaga Developable
Land
Residential 9,600 1,728 4,400,000
Plot Nueva Andalucía 6B-2-2 Marbella Málaga Urban Land Residential 831 365 600,000
Plot 15, Los Flamingos Benahavis Málaga Urban Land Residential 1,583 348 960,000
Plot 86, Los Flamingos Benahavis Málaga Urban Land Residential 1,360 283 1,000,000
Lomas de Rio Verde PA-NG-1 Marbella Málaga Developable
Land
Residential 3,728 681 1,800,000
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
14
1.3 SCOPE OF WORK & SOURCES OF
INFORMATION
Sources of Information
We have carried out our work based upon information
supplied to us by Flexshare España in previous
valuations, which we have assumed to be correct and
comprehensive:
• Land registry excerpts for all the properties
• List of properties
• Purchase deeds
• Planning documentation and licences.
• Valuation reports prepared by TINSA, dated
20th November 2015
• Amapura plot: master plan, licence, project,
cost survey report, etc
And updated information:
• Land registry excepts
• Flamingos plots: Plans and licences.
The Property Our report contains a brief summary of the property
details on which our valuation has been based.
Inspection We inspected the properties on the 20th December
2018
The inspections were undertaken by CBRE Consultants
As instructed, we have not re-inspected all the
properties for the purpose of this valuation. With
regard to those properties which have not been subject
to re-inspection, you have confirmed that you are not
aware of any material changes to the physical attributes
of the properties, or the nature of their location, since
the last inspection. We have assumed this advice to be
correct.
Areas We have not measured the Property but have relied
upon the floor areas provided in copies of notas
simples or building plans, adopting these areas for
valuation purposes.
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
15
Environmental Matters
We have not carried out any investigation into the past
or present uses of the Property, nor of any neighbouring
land, in order to establish whether there is any potential
for contamination and have therefore assumed that
none exists.
Repair and Condition We have not carried out building surveys, tested
services, made independent site investigations,
inspected woodwork, exposed parts of the structure
which were covered, unexposed or inaccessible, nor
arranged for any investigations to be carried out to
determine whether or not any deleterious or hazardous
materials or techniques have been used, or are present,
in any part of the Property. We are unable, therefore,
to give any assurance that the Property is free from
defect.
Town Planning We have relied in the information provided: copies of
licences. With regards to Marbella Centro Forestal
Sueco, we have reviewed the current planning
situation, the expressed situation of the planning status
represents our understanding of the current situation.
Titles, Tenures and Lettings
Details of title/tenure under which the Property is held
and of lettings to which it is subject are as supplied to
us. We have not generally examined nor had access
to all the deeds, leases or other documents relating
thereto. Where information from deeds, leases or other
documents is recorded in this report, it represents our
understanding of the relevant documents. We should
emphasise, however, that the interpretation of the
documents of title (including relevant deeds, leases and
planning consents) is the responsibility of your legal
adviser.
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
16
1.4 VALUATION ASSUMPTIONS
Capital Values The valuation has been prepared on the basis of
“Market Value” which is defined as:
“The estimated amount for which an asset or liability
should exchange on the valuation date between a
willing buyer and a willing seller in an arm's-length
transaction after proper marketing and where the
parties had each acted knowledgeably, prudently and
without compulsion".
No allowances have been made for any expenses of
realisation nor for taxation which might arise in the
event of a disposal. Acquisition costs have not been
included in our valuation.
No account has been taken of the availability or
otherwise of capital based Government or European
Community grants.
The Property Landlord’s fixtures such as lifts, escalators, central
heating and other normal service installations have
been treated as an integral part of the building and are
included within our valuations.
All measurements, areas and ages quoted in our report
are approximate.
Environmental Matters
In the absence of any information to the contrary, we
have assumed that:
(a) the Property is not contaminated and is not
adversely affected by any existing or proposed
environmental law;
(b) any processes which are carried out on the Property
which are regulated by environmental legislation are
properly licensed by the appropriate authorities.
Repair and Condition In the absence of any information to the contrary, we
have assumed that:
(a) there are no abnormal ground conditions, nor
archaeological remains, present which might adversely
affect the current or future occupation, development or
value of the property;
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
17
(b) the Property is free from rot, infestation, structural
or latent defect;
(c) no currently known deleterious or hazardous
materials or suspect techniques, including but not
limited to Composite Panelling, have been used in the
construction of, or subsequent alterations or additions
to, the Property; and
(d) the services, and any associated controls or
software, are in working order and free from defect.
We have otherwise had regard to the age and apparent
general condition of the Property. Comments made in
the property details do not purport to express an
opinion about, or advise upon, the condition of
uninspected parts and should not be taken as making
an implied representation or statement about such
parts.
Title, Tenure, Planning and Lettings
Unless stated otherwise within this report, and in the
absence of any information to the contrary, we have
assumed that:
(a) the Property possesses a good and marketable title
free from any onerous or hampering restrictions or
conditions;
(b) all buildings have been erected either prior to
planning control, or in accordance with planning
permissions, and have the benefit of permanent
planning consents or existing use rights for their current
use;
(c) the Property is not adversely affected by town
planning or road proposals;
(d) all buildings comply with all statutory and local
authority requirements including building, fire and
health and safety regulations;
(e) only minor or inconsequential costs will be incurred
if any modifications or alterations are necessary in
order for occupiers of each Property to comply with the
provisions of the relevant disability discrimination
legislation;
VALUATION REPORT - FLEXSHARE SPANISH REAL ESTATE PORTFOLIO
18
(f) there are no tenant’s improvements that will
materially affect our opinion of the rent that would be
obtained on review or renewal;
(g) tenants will meet their obligations under their leases;
(h) there are no user restrictions or other restrictive
covenants in leases which would adversely affect value;
(i) where appropriate, permission to assign the interest
being valued herein would not be withheld by the
landlord where required; and
(j) vacant possession can be given of all
accommodation which is unlet or is let on a service
occupancy.
2 PROPERTY REPORT
ReferenceUrbanisationAddressCityNumberProvinceCountry
Global Rating Location Property Condition Build Quality Shared Services
2-Good 2-Good 2-Good 2-Good 2-Good
Location
Description
• The property comprises a total of 99 apartments from phase I and 2 apartments from phase II located in the Urbanization Hacienda Señorío de Cifuentes, in Benahavis, within the Autonomuos Region of Andalucía, Spain.• The properties are located in western Marbella, in the municipality of Benahavis. Benahavis is a municipality of Malaga, to the south of Spain, located western of Marbela municipality. It is a tourist destination and municipality located in the Costa del Sol portion of southern Spain. It can be consider as part of "wider Marbella", as its benefits from the same type of up-market tourism.• Benahavis has an element of prestige attached and offers a peaceful alternative to the more overcrowded areas of the Costa del Sol, while still benefitting from easy access to the commercial and leisure services offered in Marbella.• The property is located close to El Paraíso Golf, at the top of a hill with open viers towards the Mediterranean Sea and El Pasaíso Golf Course. It is also close to several other golf courses as Flamingos, Marbella Club or Los Arqueros.• There is massive residential development in the area, most if it of higher standards, what is improving the overall destination.
3Spain Number of storeys (above ground)
Benahavis
Malaga3
31/12/2018UpdateNOSeñorio de CifuentesApartment/Flat2006
PROPERTY VALUATION
Señorío de Cifuentes 3, Los Jaralillos
1. Property Description
Valuation DateValuation typeInspectionLocationTypologyYear of construction
1Señorío de CifuentesLos Jaralillos
•The property comprises 99 out of 238 apartments, benefiting with storage and car parking unit, located between blocks 1 and 21. Moreover, we have added 2 apartments from the II phase (blocks 22-23), currently used as sale office of the development 22byQuartiers. In general, there are two block types and most of the apartments have the same distribution with slight differences in terraces. Ground floors benefit from a large garden, while upper floors have larger terraces. •The property is a large development with low density of housing and the product type is oriented towards mid/high income semi-permanent residents or holiday homes.•The full development was projected for a total of 322 apartments in a gated community divided into three phases, however just the first one was finished in the year 2007, with a total of 238 apartments. Adittionally, Quartier finished some months ago the construction of blocks 22-23 (2 apartments of them included in the scope of valuation). They were finished with higher standars of quality and construction, with a more contemporary style.•Due to topography most of the apartments have open views, either oriented to the east, west or south. Moreover, the complex has only one access gate which is equipped with 24 hour security. Among other facilities we can find 4 swimming pools and manicured landscaped gardens.•The residential properties which comprise the urbanisation are a finished to a typical “Mediterranean Village” Style to very good specifications at the time. The properties have been refurbished when necessary and slightly upgraded. Latest upgrade included full painting works some months ago, giving to the property a renovated appearance.
• Renewed interest in residential Real Estate in the Costa del Sol. • The property benefits from excellent open and wide views towards the Mediterranean Sea.• There are many prestigious golf courses in the vicinity such as Flamingos, Atalaya, El Paraiso or Los Arqueros
• Accessibility is through secondary, slopped and curved streets.• Not latest design style in the market. New developments are focused on open concept, glass walls to extend the interior to the exterior and large terraces as well.
ADVANTAGES DISADVANTAGES
PULSE PARA INSERTAR FOTO
PULSE PARA INSERTAR PLANO
2. Market Study - Sales
Type Date Internal sqm Price €/sqm
Transaction 31/12/2018 119 345.000 2.892Transaction 31/12/2018 120 345.000 2.876
Belaire Transaction 31/12/2018 131 371.000 2.836Offer 31/12/2018 132 450.000 3.405
Transaction 31/12/2018 142 475.000 3.345
3. Summary of the valuation
4. Conclusions
FOTO2 FOTO3
Address
Marqués de GuadalminaMarqués de Guadalmina
Condition
GoodGoodGood
StandardCataleya22 by Quartiers Standard
Comment on Market StudyThe Costa del Sol area has seen a recent massive increase in supply of new developments offering exclusive modern estates. These developments aimed at the international market, offer luxurious apartments with a high level of specifications, in addition to on-site facilities such as swimming pools, spas and gyms.In order to compare and arrive to an opinion of sales rate for finished product in the development, we have analysed comparables developments located in the near area of the asset. * Marqués de Guadalmina is located in Benahavis Road, east orientation and residential units between 80-120sqm, with an unitary price between €2,600- 2,900. These apartments offers contemporary design with highest standards of quality construction and large green areas with swimming pool. * Belaire is a residential complex under construction located in Cancelada area, Estepona, behind El Paraiso Golf Course and next to motorway A-7. The property comprises 63 apartments with an average range pricce of €2,750/ sqm. Although they are closer to the beach, the micro location is slightly lower than the asset under appraisal. Prices range from €2,600 to €3,200 per sqm depending on exact location, and height withing the building, with an average sales rate of €2,880 per sqm. Considering the above market references * In order to complete the market study, we have also included the development Cataleya. The development comprises 3 phases almost sold located behind El Paraíso Golf and those access is thorugh Road to Benahavis. The development is north-west oriented with large terraces and contemporary design. High density of construction in a hill mountain located between Los Jaralillos and the motorway. The average ticket is €3,500 per sqm, higher in comparison with its orientation and no sea views. * We have also taken into consideration prices paid in 22 by Quartiers, the 24 apartments in the same development. It is the best market termomether as they are the closest to the property and has the same location and amenities. They have been recently finished, therefore they benefit of contemporary specifications. Prices per sqm range from €2,500 to €3,000 for apartments and €3,200 to €3,300 for penthouses, with average price of €2,800 per sqm. Considering the above comparable, we have estimated a sales rate of €2,400 and €2,600 depending on orientation and considered a €200 per sqm premium for penthouses, resulting in prices ranging from €2,400 to €2,800 per sqm.For the properties located in the block 23, newest ones, we have considered an unitary value of €2,900 to the weight area, currently annexed. Therefore, we have considered a CAPEX of €35,000 per residential unit for reburbishments, to change from office to residential use (kitchen, walls construction, bathrooms...)
Marbella is one of the original Costa del Sol second home locations and it has had an element of prestige attached. The prime locations in Marbella are considered to be in the centre of Marbella and Puerto Banus, Sierra Blanca, La Zagaleta, certain areas to the East of Marbella and first line beach properties. The property under appraisal comprises 99 of out 238 apartments located in Benahavis. Secondary access by slopped and curved roads. Quartiers keeps the properties in very good repair conditiond with facade painting works and decorated with latest contemporary furniture. However, its secondary access and old style in comparison with new developments limit its market value in the residential market. However the overall area is improving as a destination, with the area improving its consolidation, and new developments attracting a higher level of purchasers.
Market Value *See the breakdown of values
*See the breakdown of values
Conclusions
Market Value (€/sqm)
5. Breakdown of values per property
No. OF ORDER (*)
LAND REGISTRY NUMBER
BLOCK FLOOR ORIENTATIONBuilt Internal Surface (sqm)
Terraces Surface (sqm)
Weighted Surface (sqm)Market Value 31.12.2018 (€)
Market Value
31.12.2018 (€/sqm)
1 11639 1 g/f SO 127,6 68,2 148,1 385.000 2.6002 11641 1 g/f SO 103,0 53,2 119,0 309.000 2.6003 11644 1 1 SO 103,0 44,6 116,4 279.000 2.4004 11646 1 1 SO 108,7 58,1 126,1 303.000 2.4005 11647 1 2 SO 118,7 48,2 133,1 346.000 2.6006 11651 2 g/f SO 129,6 68,2 150,1 390.000 2.6007 11652 2 g/f SO 103,0 53,2 119,0 309.000 2.6008 11653 2 g/f SO 103,0 53,2 119,0 309.000 2.6009 11654 2 g/f SO 127,6 68,2 148,1 385.000 2.600
10 11655 2 1 SO 118,7 58,6 136,3 327.000 2.40011 11657 2 1 SO 103,0 44,6 116,4 279.000 2.40012 11658 2 1 SO 118,7 58,6 136,3 327.000 2.40013 11659 2 2 SO 118,7 48,1 133,1 346.000 2.60014 11660 2 2 SO 103,0 32,9 112,9 293.000 2.60015 11662 2 2 SO 118,7 48,1 133,1 346.000 2.60016 11663 3 g/f SO 127,6 68,2 148,1 385.000 2.60017 11666 3 g/f SO 127,6 68,2 148,1 385.000 2.60018 11667 3 1 SO 118,7 58,6 136,3 327.000 2.40019 11668 3 1 SO 103,0 44,0 116,2 279.000 2.40020 11669 3 1 SO 103,0 44,6 116,4 279.000 2.40021 11672 3 2 SO 103,0 32,9 112,9 293.000 2.60022 11675 4 g/f SO 127,6 78,2 151,1 393.000 2.60023 11676 4 g/f SO 103,0 53,2 119,0 309.000 2.60024 11677 4 g/f SO 103,0 53,2 119,0 309.000 2.60025 11678 4 g/f SO 127,6 68,2 148,1 385.000 2.60026 11679 4 1º SO 118,8 58,6 136,4 327.000 2.40027 11682 4 1º SO 118,8 58,6 136,4 327.000 2.40028 11683 4 2º SO 118,8 48,1 133,2 346.000 2.60029 11687 5 g/f SO 127,6 78,2 151,1 393.000 2.60030 11691 5 1º SO 118,8 58,6 136,4 327.000 2.40031 11695 5 2º SO 118,8 48,1 133,2 346.000 2.60032 11696 5 2º SO 103,0 32,9 112,9 293.000 2.60033 11697 5 2º SO 103,0 32,9 112,9 293.000 2.60034 11701 6 g/f SO 103,0 53,2 119,0 309.000 2.60035 11703 6 1 SO 127,6 49,6 142,5 342.000 2.40036 11706 6 1 SO 127,6 49,7 142,5 342.000 2.40037 11709 7 g/f SO 127,6 78,2 151,1 393.000 2.60038 11710 7 g/f SO 103,0 53,2 119,0 309.000 2.60039 11711 7 g/f SO 103,0 53,2 119,0 309.000 2.60040 11712 7 g/f SO 127,6 78,2 151,1 393.000 2.60041 11713 7 1º SO 127,6 49,7 142,6 342.000 2.40042 11714 7 1º SO 103,0 44,7 116,4 279.000 2.40043 11715 7 1º SO 103,0 44,7 116,4 279.000 2.40044 11716 7 1º SO 127,6 49,7 142,6 342.000 2.40045 11739 10 g/f SE 127,6 78,2 151,1 423.000 2.80046 11741 10 g/f SE 103,0 53,2 119,0 333.000 2.80047 11742 10 g/f SE 127,6 78,2 151,1 423.000 2.80048 11743 10 1º SE 127,6 58,7 145,3 378.000 2.60049 11744 10 1º SE 103,0 44,7 116,4 303.000 2.60050 11745 10 1º SE 103,0 44,7 116,4 303.000 2.60051 11751 11 g/f S 127,6 68,2 148,1 415.000 2.80052 11754 11 g/f S 127,6 68,2 148,1 415.000 2.80053 11756 11 1 S 103,0 44,6 116,4 303.000 2.60054 11757 11 1 S 103,0 44,6 116,4 303.000 2.60055 11762 11 2 S 118,7 48,1 133,1 373.000 2.80056 11763 12 g/f SE 127,6 78,2 151,1 423.000 2.80057 11764 12 g/f SE 103,0 53,2 119,0 333.000 2.80058 11765 12 g/f SE 103,0 53,2 119,0 333.000 2.80059 11767 12 1º SE 118,8 58,7 136,4 355.000 2.60060 11768 12 1º SE 103,0 44,7 116,4 303.000 2.60061 11769 12 1º SE 103,0 44,7 116,4 303.000 2.60062 11774 12 2 SE 118,8 48,1 133,2 373.000 2.80063 11777 13 g/f SE 103,0 53,2 119,0 333.000 2.80064 11778 13 g/f SE 127,6 68,2 148,1 415.000 2.80065 11787 14 g/f SE 127,6 78,2 151,1 423.000 2.80066 11789 14 g/f SE 103,0 58,2 120,5 337.000 2.80067 11790 14 g/f SE 127,6 78,2 151,1 423.000 2.80068 11791 14 1º SE 127,6 49,7 142,6 371.000 2.60069 11793 14 1º SE 103,0 44,7 116,4 303.000 2.60070 11794 14 1º SE 127,6 49,7 142,6 371.000 2.60071 11800 15 g/f SE 127,6 78,2 151,1 423.000 2.80072 11801 15 1º SE 118,8 58,6 136,4 355.000 2.600
73 11802 15 1º SE 103,0 44,7 116,4 303.000 2.60074 11803 15 1º SE 103,0 44,7 116,4 303.000 2.60075 11804 15 1º SE 118,8 58,6 136,4 355.000 2.60076 11807 15 2º SE 103,0 32,9 112,9 316.000 2.80077 11810 16 g/f SE 103,0 53,2 119,0 333.000 2.80078 11812 16 g/f SE 127,6 68,2 148,1 415.000 2.80079 11815 16 1 SE 103,0 44,6 116,4 303.000 2.60080 11816 16 1 SE 118,7 58,6 136,3 354.000 2.60081 11821 17 g/f S 127,6 68,2 148,1 415.000 2.80082 11824 17 g/f S 127,6 68,2 148,1 415.000 2.80083 11825 17 1 S 118,7 58,6 136,3 354.000 2.60084 11833 18 g/f SO 127,6 78,2 151,1 393.000 2.60085 11839 18 1 SO 103,0 44,7 116,4 279.000 2.40086 11840 18 1 SO 127,6 49,7 142,6 342.000 2.40087 11845 19 g/f S 103,0 53,2 119,0 333.000 2.80088 11844 19 g/f S 103,0 53,2 119,0 333.000 2.80089 11855 20 g/f E 103,0 53,2 119,0 333.000 2.80090 11856 20 g/f E 127,6 78,2 151,1 423.000 2.80091 11857 20 1º E 118,8 58,6 136,4 355.000 2.60092 11858 20 1º E 103,0 44,7 116,4 303.000 2.60093 11861 20 2º E 118,8 48,1 133,2 373.000 2.80094 11866 21 g/f SE 103,0 53,2 119,0 333.000 2.80095 11867 21 g/f SE 103,0 53,2 119,0 333.000 2.80096 1869 21 1 SE 118,7 58,6 136,3 354.000 2.60097 11870 21 1 SE 103,0 44,6 116,4 303.000 2.60098 11874 21 2 E 103,0 32,9 112,9 316.000 2.80099 11875 21 2 E 103,0 32,9 112,9 316.000 2.800
100 11889 23 g/f SO 127,64 78,23 151,11 403.000 2.667101 11890 23 g/f S 103 53,18 118,95 310.000 2.600
1. Property Description
Reference
AddressCityNumberProvinceCountry
Global Rating Location Market Projection
2-Good 3-Medium 2-Good
Description
Planning situation
DISADVANTAGES
2. Summary Buildable Areas
TOTAL 8.064,00 Subsidized Housing Hotel
Apartments 8.064,00 Basement- Garage 3.000,00 Equipment
Atached houses Retail Industrial
Villas Offices Others
• The property comprises a plot of land with some preparation for further 60 apartments (blocks 24 and 28). Most of the properties would have south oriented views.• The land has a total 8,064.3 sqm of buildability. This plot represents an opportunity to create a unique development built even to higher standards and with newer design that can improve the marketability of the overall development. Quartiers is planning to increase the level of finishes and specifications (according to market standards) and built to a more contemporary style.• The plot is L-shaped, and therefore the potential development will be located at the corner of the plot, in order to maximize the open views and south orientation. The access to the property is through quite secondary and curved roads. However, the unfinished bridge thas cross the highway will be completed in a few months, therefoere it will give a new access to the plot.
• Renewed interest in residential Real Estate in the Costa del Sol. • Scarcity of similar urban residential plots of land in Costa del Sol. The Plot represents an unique opportunity to invests in the area of Marbella and Benahavis. • Rejecttion of Marbella Townplanning, therefore the adquisition of urban plot of land is expanding to adjacents muinicipalities such as Mijas, Estepona and Benahavis. • The property benefits from excellent open and wide views towards the Mediterranean Sea.
Benahavis
Malaga3
Plot of landn/a
Location• The property is located in western Marbella, in the municipality of Benahavis. Benahavis is a municipality of Malaga, to the south of Spain, located western of Marbela municipality. It is a tourist destination and municipality located in the Costa del Sol portion of southern Spain. It can be consider as part of "wider Marbella", as its benefites from the same type of up-maket tourism.• Benahavis has an element of prestige attached and offers a peaceful alternative to the more overcrowded areas of the Costa del Sol, while still benefitting from easy access to the commercial and leisure services offered in Marbella.• The property is located at the same line than El Paraíso Golf, at the top of a hill with open viers towards the Mediterranean Sea and El Pasaíso Golf Course. Phase III of a residential development named Hacienda Señorío de Cifuentes, the plot of land is located before the main entrance to the development, at the west side. • Not located first line of the hill, the plot has open views towards Mediterranean Sea and El Paraíso Golf Course.
n/aSpain Number of storeys (above ground)n/a
LocationTypologyYear of construction
PROPERTY VALUATION
Señorío de Cifuentes 3 Los Jaralillos
Valuation DateValuation typeInspection
31/12/2018UpdateNO
2Señorío de CifuentesLos Jaralillos
Urbanisation
Developable plot of land according to Benahavis Development Plan (PGOU). The property has a potential buildable area of 8,064m² aimed for 60 apartments.
ADVANTAGES• Accesibility through secondary and slopped roads.
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3. Market Study - Sales
Type Date Site sqm Buildable sqm Price €/sqm Price €/m²builtTransaction 2015 25.920,0 21.254,0 21.000.000,0 810 988 Transacción 2018 n/a 20.441,0 24.000.000,0 n/a 1.174 Transacción 2016 n/a 18.900,0 24.000.000,0 n/a 1.270 Transacción 2017 208.000,0 31.212,0 28.000.000,0 135 897
Type Date Internal sqm Price €/sqm Price ConditionAsking 31/12/2018 119,0 345.000,0 2.899,2 Good Asking 31/12/2018 120,0 345.000,0 2.875,0 Good
Transaction 31/11/2018 125,0 344.000,0 2.752,0 Good Asking 31/12/2018 119,0 385.000,0 3.235,3 Good
4. Summary of the valuation
4. Conclusions
Marbella is one of the original Costa del Sol second home locations and it has had an element of prestige attached. The prime locations in Marbella are considered to be in the centre of Marbella and Puerto Banus, Sierra Blanca, La Zagaleta, certain areas to the East of Marbella and first line beach properties. The development of several new brands in the area such as Be Lagom, may increase the interest in the plot and increase the consolidation of Capanes Sur area. Furthermore, the plot to develop may upgrade the overal development of Hacienda Señorío de Cifuentes, with the phase II (at 50% sale) and phase III to newer contemporary design with exclusive amenities and open views towards Mediterranean Sea.
Conclusions
Comment on Market StudyIn order to arrive to an opinion of market value for the development land, we have analysed transactional comparable and asking price evidence for similar land plots which are also available and have potential for residential development. Differences in factors such as classification, location, quality, specification, design and size have been taken into account. Our market study has focused on similar transactions in other comparable locations of the Costa del Sol and we have weighted as considered appropriate. It must be noticed previous to the analysis plot by plot that all the above comparable are urban plots without pending infrastructure, without planning risk and ready to be built. The first comparable is a transaction of a plot of urban land in second line beach front position. The area is highly demanded due to good feasibility for the final product to be developed on the site. Price paid reflects the location in a prime area close to Don Carlos Hotel in Elviria with the finest beaches and many amenities in the area. Larger buildable potential area than the asset under appraisal. The second transaction relates to a plot of land in Benahavis, in a location ten minutes’ drive from Marbella and Banus, however location in the area of the Ronda Road is considered superior than Atalaya. The third transaction relates to a transaction for a plot of urban land in a consolidated Golf course in Marbella. The area is much superior than the property under analysis with luxury residential real estate developed in the resort. The forth transaction relates to a plot of land located in La Alquería. On the other side of the highway, the property comprises a larger plot of land benefiting from 360º wide views towards Marbella, El Paraíso Golf Course and Coastline. Secondary access and farer than the beach ah beachline. Therefore, we have assumed an average unitary price in the range of €900.In relation with the residential product, we have estimated an unitary price of €3,000 per sqm, which is an average ticket price of €400,000 per unit, in line (or slightly above) with comparable 22 by Quartiers, in the same location.
AdressMarqués de Guadalmina
Pre-construction (months) 6 Residential (sqm) 3.000
Construction (months) 24 Basament
Time to sale (from the end of contruction)
4
13.457.157 Market Value € € 7.500.000
Residential (sqm) 1000 Offices
Basament (sqm) 350 Total income 25.215.106
Retail (sqm) IRR % 15
Offices (sqm)
Total development costs €
22 by Quartiers
Methodology Residual
Marqués de Guadalmina
22 by Quartiers
Market Study. Finished product
Land Comparable Evidence
ElviriaBenahavis
Santa Clara
Subsidized Housing (sqm) Profit on cost %
Alquería
Industrial (sqm) €/m² built € 930
Sales price €/m²
20
Subsidized Housing
Construction Costs €/m² Retail
Adress
1. Property Description
Reference
AddressCityNumberProvinceCountry
Global Rating Location Market Projection
1- Very Good 1- Very Good 3-Medium
Description
Planning situation
DISADVANTAGES
2. Summary Buildable Areas
TOTAL 2.459,16 Subsidized Housing Hotel
Apartments Basement- Garage Equipment
Atached houses Retail Industrial
Villas 2459,16 Offices Others
• The asset under appraisal comprises a plot of land with different constructions extending to approximately 13,662.50 sqm, currently occupied by a complex named Centro Forestal Sueco. The property was built in 1968 and provide a low density leisure accomodation. Initially, it was built by the Swedish forest industry as a rehabilitation center for employees. • The full property includes a hotel distributed along two buildings with 26 hotel rooms and 20 bungalows for a total of 90 guests. It also includes conference areas, recreation and rehabilitation areas (including a heated pool), a restaurant, and an independent villa. • The low density of construction and potential to develop high end real estate, makes that the value of the property lies in its potential for residential/hotel use.
• Development opportunity in a very active residential area in Marbella, where similar assets are relatively scarce.• Prime Location: affluent and desirable residential location.• Location in the heart of the Golden Mile. The area will improve with new projects such as Benalus, Epic Marbella, Concept.
Marbella
Malagan/a
Plot of landn/a
Location• The property under appraisal is located in the prime area of Golden Mile, close to the prestigious residential areas of Lomas de Marbella Club, Sierra Blanca, Camojan and Nagüeles; and also walking distance to the Beach and Puerto Banús. • This is one of the most luxurious areas of Marbella. These areas mainly provide low density housing with high quality luxury villas.• Marbella Golden Mile has been one of the first locations in Marbella to be developed due to the construction of both the Marbella Club and the Puente Romano Hotel. This area is now fully consolidated and built up, leaving an oasis of tranquillity few urbanizations enjoy today. • The surrounding area is well developed with a mix of uses including high-end residential, retail with the best restaurants in Puente Romano such as Bibo and Nobu, and with some iconic hotels such as Don Pepe, Guadalpin, Marbella Club or Puente Romano.
n/aSpain Number of storeys (above ground)n/a
PROPERTY VALUATION
Centro Forestal Sueco n/a Plot A. PA-NG-1
Valuation DateValuation typeInspectionLocationTypologyYear of construction
31/12/2018UpdateNO
3Centro Forestal SuecoPlot A. PA-NG-1
Urbanisation
•The property was classified as urban land (and could be developed easily just with the prior application of a licence) in the 2010 Marbella Town Planning, aimed for single family housing. However, in October 2015, The Supreme Court declared contrary to the legal system the Development Plan (PGOU) of Marbella, and was cancelled. Therefore, this classification is no longer feasible.•Within the current Marbella Development Plan (PGOU of 1986) the plot (and a large area to the north of the propery) is designated as PA NG-1 “Centro Forestal Sueco” classified as Land subject for development (it would coincide with “urbano no consolidado”). •This classification requires full planning procedures and application for a licence is not directly possible. Therefore in order to develop the plot it would be necessary to fulfil the full planning process including some project as a plot allocation project and an urbanization project, resulting in extended timing.•The plot A within the PA NG-1 sector measures 13,773 sqm and accounts for 7.42% of the total land sector named PA NG-1 designated for re-development. The use permitted, subject to receiving the correct planning permissions, building licences and constructing the necessary infrastructure, would be residential with a buildability of 0.2 sqm. Under this Development Plan therefore there could be development potential for villas or townhouses with buildable area of 2,459.16sqm. In that order, it would be necessary to do the full planning process with urbanization costs.
ADVANTAGES• Current classification as PA (no consolidado), and most of the purchasers are just interested in land ready to develop (urban).• Planning risks, due to the cancellation of the previous development plan• Difficulties of the town Hall to issue a new Development Plan.
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3. Market Study - Sales
Type Date Site sqm Buildable sqm Price €/sqm Price €/m²builtTransaction 2016 n/a 3.783,0 7.000.000,0 n/a 1.850 Transacción 2015 n/a 17.000,0 42.000.000,0 n/a 2.471 Transacción 2017 n/a 18.929,0 24.600.000,0 n/a 1.300 Transacción 2015 n/a 9.500,0 13.000.000,0 n/a 1.368
Type Date Internal sqm Price €/sqm Price ConditionAsking 31/12/2018 286,0 1.450.000,0 5.069,9 Good
Transaction 09/12/2018 432,0 2.200.000,0 5.092,6 Good Transaction 10/10/2018 173,0 975.000,0 5.635,8 Good Transaction 22/09/2018 202,0 1.450.000,0 7.178,2 Good
4. Summary of the valuation
4. Conclusions
Adress
The current value represents the achievable price in current situation. However, due to its prime location, despite the current classification and the expected potential result in a future PGOU, any investor would purchase the land based on a future higher buildable ratio (similar to the previous PGOU) and would “wait and see” until a new development plan is drafted. The property comprises a prime development opportunity in a very active residential area (in the context of the market) in Marbella, where similar assets are relatively scarce and which in recent years have generally been the subject of competitive tension when marketed. Moreover there is upside potential in a future Development Plan.
Conclusions
Comment on Market StudyIn the absence of planning consent for a detailed scheme, we have adopted a ‘high level’ approach and undertaken a residual appraisal based on a hypothetical scheme which we consider to be broadly compliant in planning terms. We have assumed the development of villas (permitted in the current valid PGOU document) on UE-3 sub-type with a minimum plot size of 800sqm, which result a development of a total of 15 villas. In order to arrive to an opinion of market value for the development land, we have analysed transactional comparable evidence for similar plots of land available and have potential for residential development. Differences in factors such as classification, location, quality, specification, design and size have been taken into account. The first comparable is a transaction for a property in a similar location, besides Alanda hotel in the Golden Mile. Due to the poorer accessibility and low consolidation of the area it can be considered as a worse location. The second evidence is a prime site in Eastern Marbella to develop a whole sector. The site is classified as aimed for development (“urbanizable”) and therefore was pending urbanisation and infrastructure costs. The location is prime in one of the finest beaches, however the transaction was for a larger quantum and therefore a lower rate per sqm. The third transaction comprises the acquisition of two plots of urban land within the Santa Clara golf course, a highly demanded location for second home. The price paid (€1,300 per sqm buildable) represent a 100% increase from transactions within the same resort a year before. This shows the lack of urban land and the renewed interest for land in Marbella. The fourth comparable is for a transaction in 2015 for a property situated in a prime location on the popular New Golden Mile. This comparable is also located close to the A-7 road and it remains a prime beach side location only 15 minutes from Marbella, in Estepona. Marbella is however a more affluent area and attracts a higher demand of international buyers than Estepona. This is driven due to its proximity to Puerto banus, local amenities, popular beaches, clubs and local nightlife; therefore we have applied a premium to the subject reference.Weighting all the above references in terms of size and exact location we consider that the value per sqm of buildable floor space for the subject property should be around 2,500€/sqm, similarly to comparable 2. In reference to the final product, we have considered an unitary value of €6,200/sqm, an average ticket around 1,000,000 per unit.
AdressIcon Homes Santa Clara
Pre-construction (months) 36 Residential (sqm) 6.200
Construction (months) 18 Basament
Time to sale (from the end of contruction)
3 Subsidized Housing
Construction Costs €/m² Retail
Market Value € € 6.300.000
Residential (sqm) 1.250 Offices
Basement (sqm) Total income 18.137.736
Subsidized Housing (sqm) Profit on cost % 46
Retail (sqm) IRR % 14
Offices (sqm)
Industrial (sqm) €/m² built € 2.562
Total development costs € 6.073.735
La Meridiana Suites
Methodology Residual Sales price €/m²
Icon Homes Santa Clara
La Meridiana Suites
Market Study. Finished product
Land Comparable Evidence
Golden MileMarbella Prime
Santa ClaraArroyo Antón
1. Property Description
Reference
AddressCityNumberProvinceCountry
Global Rating Location Market Projection
1- Very Good 1- Very Good 3-Medium
Description
Planning situation
DISADVANTAGES
2. Summary Buildable Areas
TOTAL 2.453,58 Subsidized Housing Hotel
Apartments Basement- Garage Equipment
Atached houses Retail Industrial
Villas 2.453,58 Offices Others
• The asset under appraisal comprises two plots with different constructions extending to approximately 13,631 sqm currently occupied by the facilities of a wider complex named Centro Forestal Sueco, in the Marbella Golden Mile. The property was built in 1968 and provide a lo density leisure accomodation. Initially, it was built by the Swedish forest industry as a rehabilitation center for employees, today it is open for everyone. • The full property includes a hotel distributed along two buildings with 26 hotel rooms and 20 bungalows for a total of 90 guests. It also includes conference areas, recreation and rehabilitation areas (including a heated pool), a restaurant, and an independent villa. • The low density of construction and potential to develop high end real estate, makes that the value of the property lies in its potential for residential/hotel use.
• Development opportunity in a very active residential area in Marbella, where similar assets are relatively scarce.• Prime Location: affluent and desirable residential location.• Location in the heart of the Golden Mile. The area will improve with new projects such as Benalus, Epic Marbella, Concept.
Marbella
Malagan/a
Plot of landn/a
Location• The property under appraisal is located in the prime area of Golden Mile, close to the prestigious residential areas of Lomas de Marbella Club, Sierra Blanca, Camojan and Nagüeles; and also walking distance to the Beach and Puerto Banús. • This is one of the most luxurious areas of Marbella. These areas mainly provide low density housing with high quality luxury villas.• Marbella Golden Mile has been one of the first locations in Marbella to be developed due to the construction of both the Marbella Club and the Puente Romano Hotel. This area is now fully consolidated and built up, leaving an oasis of tranquillity few urbanizations enjoy today. • The surrounding area is well developed with a mix of uses including high-end residential, retail with the best restaurants in Puente Romano such as Bibo and Nobu, and with some iconic hotels such as Don Pepe, Guadalpin, Marbella Club or Puente Romano.
n/aSpain Number of storeys (above ground)n/a
PROPERTY VALUATION
Centro Forestal Sueco n/a Plot B. PA-NG-1
Valuation DateValuation typeInspectionLocationTypologyYear of construction
31/12/2018UpdateNO
4Centro Forestal SuecoPlot B. PA-NG-1
Urbanisation
• The property was classified as urban land (and could be developed easily just with the prior application of a licence) in the 2010 Marbella Town Planning, aimed for single family housing. However, in October 2015, The Supreme Court declared contrary to the legal system the Development Plan (PGOU) of Marbella, and was cancelled. Therefore, this classification is no longer feasible.• Within the current Marbella Development Plan (PGOU of 1986) the plot (and a large area to the north of the propery) is designated as PA NG-1 “Centro Forestal Sueco” classified as Land subject for development (it would coincide with “urbano no consolidado”). • This classification requires full planning procedures and application for a licence is not directly possible. Therefore in order to develop the plot it would be necessary to fulfil the full planning process including some project as a plot allocation project and an urbanization project, resulting in extended timing.• The plot B within the PA NG-1 sector measures 13,631 sqm (includes 2 notas simples numbers) and accounts for 7.35% of the total land sector named PA NG-1 designated for re-development. The use permitted, subject to receiving the correct planning permissions, building licences and constructing the necessary infrastructure, would be residential with a buildability of 0.2 sqm. Under this Development Plan therefore there could be development potential for villas or townhouses with buildable area of 2,453.58sqm. In that order, it would be necessary to do the full planning process with urbanization costs.
ADVANTAGES• Current classification as PA (no consolidado), and most of the purchasers are just interested in land ready to develop (urban).• Planning risks, due to the cancellation of the previous development plan• Difficulties of the town Hall to issue a new Development Plan.
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3. Market Study - Sales
Type Date Site sqm Buildable sqm Price €/sqm Price €/m²builtTransaction 2016 n/a 3.783,0 7.000.000,0 n/a 1.850 Transacción 2015 n/a 17.000,0 42.000.000,0 n/a 2.471 Transacción 2017 n/a 18.929,0 24.600.000,0 n/a 1.300 Transacción 2015 n/a 9.500,0 13.000.000,0 n/a 1.368
Type Date Internal sqm Price €/sqm Price ConditionAsking 31/12/2018 286,0 1.450.000,0 5.069,9 Good
Transaction 09/12/2018 432,0 2.200.000,0 5.092,6 Good Transaction 10/10/2018 173,0 975.000,0 5.635,8 Good Transaction 22/09/2018 202,0 1.450.000,0 7.178,2 Good
4. Summary of the valuation
4. Conclusions
Adress
The current value represents the achievable price in current situation. However, due to its prime location, despite the current classification and the expected potential result in a future PGOU, any investor would purchase the land based on a future higher buildable ratio (similar to the previous PGOU) and would “wait and see” until a new development plan is drafted. The property comprises a prime development opportunity in a very active residential area (in the context of the market) in Marbella, where similar assets are relatively scarce and which in recent years have generally been the subject of competitive tension when marketed. Moreover there is upside potential in a future Development Plan.
Conclusions
Comment on Market StudyIn the absence of planning consent for a detailed scheme, we have adopted a ‘high level’ approach and undertaken a residual appraisal based on a hypothetical scheme which we consider to be broadly compliant in planning terms. We have assumed the development of villas (permitted in the current valid PGOU document) on UE-3 sub-type with a minimum plot size of 800sqm, which result a development of a total of 15 villas. In order to arrive to an opinion of market value for the development land, we have analysed transactional comparable evidence for similar plots of land available and have potential for residential development. Differences in factors such as classification, location, quality, specification, design and size have been taken into account. The first comparable is a transaction for a property in a similar location, besides Alanda hotel in the Golden Mile. Due to the poorer accessibility and low consolidation of the area it can be considered as a worse location. The second evidence is a prime site in Eastern Marbella to develop a whole sector. The site is classified as aimed for development (“urbanizable”) and therefore was pending urbanisation and infrastructure costs. The location is prime in one of the finest beaches, however the transaction was for a larger quantum and therefore a lower rate per sqm. The third transaction comprises the acquisition of two plots of urban land within the Santa Clara golf course, a highly demanded location for second home. The price paid (€1,300 per sqm buildable) represent a 100% increase from transactions within the same resort a year before. This shows the lack of urban land and the renewed interest for land in Marbella. The fourth comparable is for a transaction in 2015 for a property situated in a prime location on the popular New Golden Mile. This comparable is also located close to the A-7 road and it remains a prime beach side location only 15 minutes from Marbella, in Estepona. Marbella is however a more affluent area and attracts a higher demand of international buyers than Estepona. This is driven due to its proximity to Puerto banus, local amenities, popular beaches, clubs and local nightlife; therefore we have applied a premium to the subject reference.Weighting all the above references in terms of size and exact location we consider that the value per sqm of buildable floor space for the subject property should be around 2,500€/sqm, similarly to comparable 2. In reference to the final product, we have considered an unitary value of €6,200/sqm, an average ticket around 1,000,000 per unit.
AdressIcon Homes Santa Clara
Pre-construction (months) 36 Residential (sqm) 6.200
Construction (months) 18 Basament
Time to sale (from the end of contruction)
3 Subsidized Housing
Construction Costs €/m² Retail
Market Value € € 6.300.000
Residential (sqm) 1.250 Offices
Basament (sqm) Total income 18.095.918
Subsidized Housing (sqm) Profit on cost % 46
Retail (sqm) IRR % 14
Offices (sqm)
Industrial (sqm) €/m² built € 2.568
Total development costs € 6.045.207
La Meridiana Suites
Methodology Residual Sales price €/m²
Icon Homes Santa Clara
La Meridiana Suites
Market Study. Finished product
Land Comparable Evidence
Golden MileMarbella Prime
Santa ClaraArroyo Antón
1. Property Description
Reference
AddressCityNumberProvinceCountry
Global Rating Location Market Projection
1- Very Good 1- Very Good 3-Medium
Description
Planning situation
DISADVANTAGES
2. Summary Buildable Areas
TOTAL 1.728,00 Subsidized Housing Hotel
Apartments Basement- Garage Equipment
Atached houses Retail Industrial
Villas 1.728,00 Offices Others
• The asset under appraisal comprises a plot with different constructions extending to approximately 9,600 sqm currently occupied by the facilities of a wider complex named Centro Forestal Sueco, in the Marbella Golden Mile. The property was built in 1968 and provide a lo density leisure accomodation. Initially, it was built by the Swedish forest industry as a rehabilitation center for employees, today it is open for everyone. • The full property includes a hotel distributed along two buildings with 26 hotel rooms and 20 bungalows for a total of 90 guests. It also includes conference areas, recreation and rehabilitation areas (including a heated pool), a restaurant, and an independent villa. • The low density of construction and potential to develop high end real estate, makes that the value of the property lies in its potential for residential/hotel use.
• Development opportunity in a very active residential area in Marbella, where similar assets are relatively scarce.• Prime Location: affluent and desirable residential location.• Location in the heart of the Golden Mile. The area will improve with new projects such as Benalus, Epic Marbella, Concept.
Marbella
Malagan/a
Plot of landn/a
Location• The property under appraisal is located in the prime area of Golden Mile, close to the prestigious residential areas of Lomas de Marbella Club, Sierra Blanca, Camojan and Nagüeles; and also walking distance to the Beach and Puerto Banús. • This is one of the most luxurious areas of Marbella. These areas mainly provide low density housing with high quality luxury villas.• Marbella Golden Mile has been one of the first locations in Marbella to be developed due to the construction of both the Marbella Club and the Puente Romano Hotel. This area is now fully consolidated and built up, leaving an oasis of tranquillity few urbanizations enjoy today. • The surrounding area is well developed with a mix of uses including high-end residential, retail with the best restaurants in Puente Romano such as Bibo and Nobu, and with some iconic hotels such as Don Pepe, Guadalpin, Marbella Club or Puente Romano.
n/aSpain Number of storeys (above ground)n/a
PROPERTY VALUATION
Centro Forestal Sueco n/a Plot C. PA-NG-1
Valuation DateValuation typeInspectionLocationTypologyYear of construction
31/12/2018UpdateNO
5Centro Forestal SuecoPlot C. PA-NG-1
Urbanisation
•The property was classified as urban land (and could be developed easily just with the prior application of a licence) in the 2010 Marbella Town Planning, aimed for hotel use. However, in October 2015, The Supreme Court declared contrary to the legal system the Development Plan (PGOU) of Marbella, and was cancelled. Therefore, this classification is no longer feasible.•Within the current Marbella Development Plan (PGOU of 1986) the plot (and a large area to the north of the propery) is designated as PA NG-1 “Centro Forestal Sueco” classified as Land subject for development (it would coincide with “urbano no consolidado”).•This classification requires full planning procedures and application for a licence is not directly possible. Therefore in order to develop the plot it would be necessary to fulfil the full planning process including some project as a plot allocation project and an urbanization project, resulting in extended timing.•The Flexshare plot C within the PA NG-1 sector measures 9,600 sqm and accounts for 5.17% of the total land sector named PA NG-1 designated for re-development. The use permitted, subject to receiving the correct planning permissions, building licences and constructing the necessary infrastructure, would be residential with a buildability of 0.2 sqm. Under this Development Plan therefore there could be development potential for villas or townhouses with buildable area of 1,728sqm. In that order, it would be necessary to do the full planning process with urbanization costs.
ADVANTAGES• Current classification as PA (no consolidado), and most of the purchasers are just interested in land ready to develop (urban).• Planning risks, due to the cancellation of the previous development plan• Difficulties of the town Hall to issue a new Development Plan.
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3. Market Study - Sales
Type Date Site sqm Buildable sqm Price €/sqm Price €/m²builtTransaction 2016 n/a 3.783,0 7.000.000,0 n/a 1.850 Transacción 2015 n/a 17.000,0 42.000.000,0 n/a 2.471 Transacción 2017 n/a 18.929,0 24.600.000,0 n/a 1.300 Transacción 2015 n/a 9.500,0 13.000.000,0 n/a 1.368
Type Date Internal sqm Price €/sqm Price ConditionAsking 31/12/2018 286,0 1.450.000,0 5.069,9 Good
Transaction 09/12/2018 432,0 2.200.000,0 5.092,6 Good Transaction 10/10/2018 173,0 975.000,0 5.635,8 Good Transaction 22/09/2018 202,0 1.450.000,0 7.178,2 Good
4. Summary of the valuation
4. Conclusions
Adress
The current value represents the achievable price in current situation. However, due to its prime location, despite the current classification and the expected potential result in a future PGOU, any investor would purchase the land based on a future higher buildable ratio (similar to the previous PGOU) and would “wait and see” until a new development plan is drafted. The property comprises a prime development opportunity in a very active residential area (in the context of the market) in Marbella, where similar assets are relatively scarce and which in recent years have generally been the subject of competitive tension when marketed. Moreover there is upside potential in a future Development Plan.
Conclusions
Comment on Market StudyIn the absence of planning consent for a detailed scheme, we have adopted a ‘high level’ approach and undertaken a residual appraisal based on a hypothetical scheme which we consider to be broadly compliant in planning terms. We have assumed the development of villas (permitted in the current valid PGOU document) on UE-3 sub-type with a minimum plot size of 800sqm, which result a development of a total of 11 villas after the development of streets.In order to arrive to an opinion of market value for the development land, we have analysed transactional comparable evidence for similar plots of land available and have potential for residential development. Differences in factors such as classification, location, quality, specification, design and size have been taken into account. The first comparable is a transaction for a property in a similar location, besides Alanda hotel in the Golden Mile. Due to the poorer accessibility and low consolidation of the area it can be considered as a worse location. The second evidence is a prime site in Eastern Marbella to develop a whole sector. The site is classified as aimed for development (“urbanizable”) and therefore was pending urbanisation and infrastructure costs. The location is prime in one of the finest beaches, however the transaction was for a larger quantum and therefore a lower rate per sqm. The third transaction comprises the acquisition of two plots of urban land within the Santa Clara golf course, a highly demanded location for second home. The price paid (€1,300 per sqm buildable) represent a 100% increase from transactions within the same resort a year before. This shows the lack of urban land and the renewed interest for land in Marbella. The fourth comparable is for a transaction in 2015 for a property situated in a prime location on the popular New Golden Mile. This comparable is also located close to the A-7 road and it remains a prime beach side location only 15 minutes from Marbella, in Estepona. Marbella is however a more affluent area and attracts a higher demand of international buyers than Estepona. This is driven due to its proximity to Puerto banus, local amenities, popular beaches, clubs and local nightlife; therefore we have applied a premium to the subject reference.Weighting all the above references in terms of size and exact location we consider that the value per sqm of buildable floor space for the subject property should be around 2,500€/sqm, similarly to comparable 2. In reference to the final product, we have considered an unitary value of €6,200/sqm, an average ticket around 1,000,000 per unit.
AdressIcon Homes Santa Clara
Pre-construction (months) 36 Residential (sqm) 6.200
Construction (months) 18 Basament
Time to sale (from the end of contruction)
3 Subsidized Housing
Construction Costs €/m² Retail
Market Value € € 4.400.000
Residential (sqm) 1.250 Offices
Basament (sqm) Total income 12.744.539
Subsidized Housing (sqm) Profit on cost % 46
Retail (sqm) IRR % 14
Offices (sqm)
Industrial (sqm) €/m² built € 2.546
Total development costs € 4.294.445
La Meridiana Suites
Methodology Residual Sales price €/m²
Icon Homes Santa Clara
La Meridiana Suites
Market Study. Finished product
Land Comparable Evidence
Golden MileMarbella Prime
Santa ClaraArroyo Antón
1. Property Description
Reference
AddressCityNumberProvinceCountry
Global Rating Location Market Projection
2-Good 2-Good 2-Good
Description
Planning situation
DISADVANTAGES
2. Summary Buildable Areas
TOTAL 164,20 Subsidized Housing Hotel
Apartments Basement- Garage 201,44 Equipment
Atached houses Retail Industrial
Villas 164,20 Offices Others
• Plot of land with a total area of 831 sqm. The property can be developed for residential use for single family housing (one villa) at 30% plot to built floor area ratio.• The plot is part of a combined development of 5 villas named (for marketing purposes and will be developed simultaneously) as Amapura, however it is not going to be developed solely by a single developer. The plot under valuation is the second one, next to the highway.• There are local amenities such as supermarkets, restaurants, bars, cafes, shop etc. located less than 5 minutes’ drive from the property.• According to information provided, there ir a slight difference between land registry and catastro. However, the plot was measured with a resulting surface of 831sqm, which coincides with cadastral area. Therefore, we have adopted this one for valuation purposes. • Moreover, we have been provided with the plans of the villa projected. According to the information, the villa has a total built area of 164.20sqm on the ground and upper floor, and a basement of 201.44sqm.
• Good Location: affluent and desirable residential location with strong demand from buyers due to its proximity to golf courses and open views. Moreover, the area will improve with new projects in the area such as Anamaya, La Morelia and 9 Lions.• There are many prestigious golf courses in the area such Aloha, Los Naranjos or Las Brisas and close proximity to Puerto Banús.
Marbella
Malagan/a
Plot of landn/a
Location• The property is situated in Nueva Andalucía. Nueva Andalucía is located within the municipality of Marbella, province of Málaga in southern Spain, in the Costa del Sol. It is also known as the “Golf Valley” due to hosts three iconic golf courses: Las Brisas, Los Naranjos and Aloha. It is mainly a residential area devoted to mid-high level residential, mostly developed with low density housing.• The area where the property is located, is slopped in the upper part of a hill. Next to the highway, and its bridge to connect with Concepción water reservoir, the plot benefits from west-south orientation and wide and open views towards Mediterranean sea and Golf Courses. Although the area is mostly developed with klow density, in the area there are several multi-family developments.• Although Nueva Andalucía is mainly residential, the area benefits from good local amenities in the Avda. Del Prado in Aloha Gardens, there is also a Mercadona supermarket (the most popular chain in Spain) in Puerto Golf urbanisation, ½ km from the property and a shopping centre named Centro Plaza also very close to the property.
n/aSpain Number of storeys (above ground)n/a
PROPERTY VALUATION
Nueva Andalucía n/a 6B-2-2. Supermanzana J-K-L
Valuation DateValuation typeInspectionLocationTypologyYear of construction
31/12/2018UpdateNO
6Nueva Andalucía6B-2-2. Supermanzana J-K-L
Urbanisation
The plot stands in sub-sector 26 of sector URP AN-2 of the 1986 Marbella Development Plan:• The plan parcial (zoning plan) was definitively approved 19/03/90• Urbanization project unnecessary, according to Town Hall agreement dated 20/11/07, but approving pending urbanization costs.Therefore, the area is considered as urban land with the zoning rule UE-3The main development parameters of the subarea UE-3 are:• Minimum plot for subdivisions or segregation: 800 sq m , Front: 10 m. Depth: 15m. Segregations are permitted provided that these meet the above conditions.• Maximum occupancy is 25%. In any case the building must be undertaken in the general rules on the preservation of existing trees.• Maximum buildable area: 0.20 m²/m² • Building type: Single family housing restricted to minimum plot subdivision. We have had access to the plans of the villa, with the total built areas per level, and Construction License approved on date 17th September 2018.
ADVANTAGES• Not direct connection from the motorway, and thorough secondary and curved roads • An increasing number of residential properties coming to the market
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3. Market Study - Sales
Type Date Site sqm Buildable sqm Price €/sqm Price €/m²builtTransaction 2017 2.610,0 n/a 1.350.000,0 517 n/aTransacción 2016 1.700,0 n/a 1.200.000,0 705,9 n/aTransacción 2017 2.400,0 n/a 2.000.000,0 833,3 n/aTransacción 2016 4.000,0 n/a 2.000.000,0 500 n/a
Type Date Internal sqm Price €/sqm Price ConditionTransaction 01/07/2018 269,0 2.390.000,0 8.884,8 GoodTransaction 01/03/2018 295,0 2.450.000,0 8.305,1 Good
Asking 31/12/2018 220,0 1.900.000,0 8.636,4 Good Asking 31/12/2018 416,0 2.295.000,0 5.516,8 Good
4. Summary of the valuation
4. Conclusions
Adress
The current value represents the achievable price in current situation. The construction works is almost started with properties sold off- plans. The asking price from the property that has come back to the market do not reflect the current situation, sold at a range price of €1,000,000-€1,300,000, in a secondary area next to the highway. Therefore, in order to estimate the current market value for the plot, we have considered the location and accesibility. interest in the latest urban plots of land oin Marbella due to the scarcity of available plots and the increase of prices.
Conclusions
Comment on Market StudyIn order to value the property, we have sumarised completed sales transactions of plots of land to have an approach to the final value. These plots are located in similar locations to the subject property. Therefore, they are the most reliable source of information due to represents the sales final price of the properties after marketing. The comparables are ranked in order of relvance. We have ajusted each comparable accordingly based on the most importance factors taht affect the valuation: location, views, accesibility and buildablity. We have only considered transactions for properties located in Nueva Andalucía. Most of the comparables are much larger than the property under appraisal, therefore could command lower sales values, considering the factor in our valuation. Most of the transactions are in La Cerquilla, one of the best areas within Nueva Andalucía, with larger villas and closer to Golf Courses. Most of the plots of land in the area are inthe range of €500-800 per sqm, depending on location, size and views. We have to remark that the current sitation with the Townplanning of Marbella and the lak of urban plots of land, makes increase the sales prices of the plots in the municipality. Based on the above information, we consider that the current market value for the plot of land given its shorter surface, but inferior location than comparables, is in the average range of comparables, around €700 per sqm of gross site area. Moreover, we have cross check the comparable with a rasidual valuation method. We have carried out a residential market study of new developments in the area:Anamaya Villas is a development which consist in 5 exclusive villas located nex to Las Brisas golf Course. The development is west-south oriented with open views towards golf courses and Marbella coast. The ticket price starts in €2,000,000 for larger villas than the potential in the plot under appraisla an better microlocation. Amapura Villas is the development where is located the plot under appraisal. All properties where sold off-plan at a range price of €1,000,000-€1,200,000. However, due to the time has passed, we consider that the property could be sold at a price of €1,700,000.The latest comparables are Los Olivos development, located in the lower area of Los Naranjos Golf Course. It is a development of 18 villas, available 2. Range price of €2,000,000-€2,300,000 due to its larger surface and proximity to the golf course.
AdressAnamaya Villas
Pre-construction (months) 2 Residential (sqm) 10.000
Construction (months) 12 Basament
Time to sale (from the end of contruction)
1 Subsidized Housing
Construction Costs €/m² Retail
Market Value € € 600.000
Residential (sqm) 2.200 Offices
Basement (sqm) 1.400 Total income 1.700.000
Subsidized Housing (sqm) Profit on cost % 8
Retail (sqm) IRR % 12
Offices (sqm)
Industrial (sqm) €/m² built € 3.654
Total development costs € 956.585
Anamaya Villas
Methodology Residual Sales price €/m²
Amapura VillasLos Olivos Villas
Market Study. Finished product
Land Comparable Evidence
La Cerquilla, Nueva AndaluciaLa Cerquilla, Nueva Andalucia
Calle LeoLa Cerquilla, Nueva Andalucia
1. Property Description
Reference
AddressCityNumberProvinceCountry
Global Rating Location Market Projection
2-Good 2-Good 2-Good
Description
Planning situation
DISADVANTAGES
2. Summary Buildable Areas
TOTAL 348,30 Subsidized Housing Hotel
Apartments Basement- Garage 230,00 Equipment
Atached houses Retail Industrial
Villas 348,30 Offices Others
• Plot of land with a total area of 1,583.21sqm according to the information provided. The property can be developed for residential use for single family housing (one villa) at 22% floor area ratio, with a maximum built area of 348.30sqm.• The property is located in first-line golf, benefiting from golf and coastal views. • There is no construction projected yet, therefore we assume a total built area of 348.30sqm with a similar design as properties in the area with highest standards of qualities.
• Prime Location: high-level residentials in the area, with strong demand from buyers. The area is having a new interest due to new developments in the area of Cancelada, with developments such as Oceana, Le Mirage and Syzgy.• Prestigious Golf Course in the area such as Flamingos, one of the most luxury complex in the area of Costa del Sol. Moreover there are more golf courses in the proximity. Close distance to Marbella and Puerto Banús, well connected by the motorway with direct access.
Benahavis
Malaga15
Plot of landn/a
Location• The property is located in Los Flamingos Golf Course, a 18-hole golf course located in the municipality of Benahavis, beyond Marbella and Puerto Banús. It is mostly developed with low density of construction (villas) and devoted to high-level residential. • Next to Villa Padierna, one of the most luxurious hotels of Costa del Sol, the area is quite relaxing and tranquil aimed for high-income purchasers.• 5 min distance from the motorway, the property is 10 distance from Puerto Banus and its luxury shopping area. Moreover, there are supermarkets and more amenities in the area of the morotway.• The property is located in a slopped area, first golf area with open views. The property is not elevated, therefore the coastal views and golf views are more limited. • The area is consolidating as one of the the most luxurious hubs in the coast. The presence of several golf courses such as El Paraíso Golf, Los Flamingos and the American Golf Academy, makes it more exclusive and aimed for high-end residential use. • There are new developments in the Cancelada area, with residential complexs under construction such as Oceana, Syzgy and Le Mirage.
n/aSpain Number of storeys (above ground)n/a
PROPERTY VALUATION
Los Flamingos 15 Los Flamingos Plot 15
Valuation DateValuation typeInspectionLocationTypologyYear of construction
31/12/2018NewYES
7Los Flamingos Los Flamingos Plot 15
Urbanisation
The plot stands in sector los Flamingos, according to 1996 Benahavis Development Plan, with the following parameters:• The plan parcial (zoning plan) of Los Flamingos approved.• Urbanization project unnecessary.• Minimum plot for subdivisions or segregation: 1,000 sqm, in project 1,583.21sqm.• Distance to public and private limits: 3m.• Maximum occupancy is 30%. • Maximum buildable area: 0.22 m²/m² built (348.30).• Building type: Single family housing.
ADVANTAGES• An increasing number of residential properties coming to the market• Oriented to high market, with an increasing number of competitors in the area.
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3. Market Study - Sales
Type Date Site sqm Buildable sqm Price €/sqm Price €/m²builtTransaction 2017 2.884,0 n/a 1.730.000,0 600 n/a
Asking 2018 1.315,0 n/a 795.000,0 604,6 n/aTransaction 2016 2.688,0 n/a 2.150.000,0 799,9 n/aTransaction 2017 3.395,0 n/a 2.500.000,0 736 n/a
Type Date Internal sqm Price €/sqm Price ConditionTransaction 01/08/2016 397,0 5.500.000,0 13.853,9 Good
Asking 31/12/2018 328,5 1.899.000,0 5.780,8 Good Asking 31/12/2018 295,0 2.500.000,0 8.474,6 Good Asking 31/12/2018 451,0 2.499.000,0 5.541,0 Good
4. Summary of the valuation
4. Conclusions
Adress
Prices in the area of Benahavis and Estepona are rising due to the lack of urban land in Marbella, with the rejection of Urban Plan. The property is lcoated first line golf, west orientation and benefits from open views towards mediterranean sea and golf courses. We assume a good marketability of the product in a high-level residential with villas constructions.However, the area of Cancelada is developing several constructions which brings to the market thousand of new residential units (included villas) at lower ticket prices.
Conclusions
Comment on Market StudyIn order to value the property, we have sumarised completed sales transactions and asking prices of land plots to have an approach to the final value. These plots are located in the same resort than the subject property, althought the date and exact location might differ. Therefore, they are the most reliable source of information.The comparables are ranked in order of relevance. We have ajusted each comparable accordingly based on the most importance factors that affect the valuation: location, views, accesibility and buildablity. We have only considered transactions for properties located in Los Flamingos. Most of the plots of land in the area are in the range of €600-800 per sqm, depending on location, size and views. We have estimated a discount for the asking comparable of 15% due to possible negotiations.Therefore, based on the above information, and considering the location with open views north and estas oriented towards the golf course, and the lower level location within the golf course, we estimate that the current market value for the plot of land is in the low range of comparables, around €600 per sqm of gross site area. Moreover, we have cross checked the comparable with a residual valuation method. The residential market study carried out in the area reflects sales price in the range of €2,000,000-5,500,000 for villas between 300-450sqm. All of them built with highest quality materials and contemporary design, open views and private garden and swimming pool. In order to arrive at an estimated unitary value of the properties, we have considered the 100% of internal surfaces and 50% of terraces areas. Therefore, considering its location and open views, we estimate a ticket price for the finished unit of around €2,750,000 due to its quality construction.
AdressLos Flamingos
Pre-construction (months) 6 Residential (sqm) 7.700
Construction (months) 12 Basament
Time to sale (from the end of contruction)
1 Subsidized Housing
Construction Costs €/m² Retail
Market Value € € 960.000
Residential (sqm) 2.200 Offices
Basament (sqm) 1.200 Total income 2.776.480
Subsidized Housing (sqm) Profit on cost % 11
Retail (sqm) IRR % 12
Offices (sqm)
Industrial (sqm) €/m² built € 2.756
Total development costs € 1.551.101
Los Flamingos
Methodology Residual Sales price €/m²
Los Flamingos
Los Flamingos
Market Study. Finished product
Land Comparable Evidence
Los Flamingos (2 plots)Los Flamingos
Los Flamingos (2 plots)Los Flamingos (2 plots)
1. Property Description
Reference
AddressCityNumberProvinceCountry
Global Rating Location Market Projection
2-Good 2-Good 2-Good
Description
Planning situation
DISADVANTAGES
2. Summary Buildable Areas
TOTAL 283,03 Subsidized Housing Hotel
Apartments Basement- Garage 302,00 Equipment
Atached houses Retail Industrial
Villas 283,03 Offices Others
Urbanisation
The plot stands in sector los Flamingos, according to 1996 Benahavis Development Plan, with the following parameters:• The plan parcial (zoning plan) of Los Flamingos approved.• Urbanization project unnecessary.• Minimum plot for subdivisions or segregation: 1,000 sqm, in project 1,295.65sqm.• Distance to public and private boundaries: 3m, in project 3.20m• Maximum occupancy is 30%. Except the basement with an occupancy of 23.30%, in the rest of level does not exceed the 20% of occupation. • Maximum buildable area: 0.22 m²/m² built (285.43sqm); in project 0.2185 m²/m² built (283.03sqm)• Building type: Single family housing.• Construction Licence approved on 6th April 2018. Moreover, we have estimated a minimun urbanization cost in order to adecuate for the new development.
ADVANTAGES• An increasing number of residential properties coming to the market. Future competition.• Oriented to high market, with an increasing number of competitors in the area.
n/a
PROPERTY VALUATION
Los Flamingos 86 Los Flamingos plot 86
Valuation DateValuation typeInspectionLocationTypologyYear of construction
31/12/2018NewYES
8Los Flamingos Los Flamingos plot 86
• Plot of land with a total area of 1,295.65sqm according to the information provided. The property can be developed for residential use for single family housing (one villa) at a floor area ratio of 22%, with a maximum built area of 285sqm.• The property is located almost in first-line golf, in a high level and therefore benefits from open views towards the golf course and sea views.• We have been provided with the plans of the villa projected and First occupancy License approval. The property projected comprises 3 levels: basement, ground floor with the living area and a large porch and upper floor with 4 bedrooms. Moreover, there is a large green area and a infinity pool projected west orientated with open views towards golf course.• For valuation purposes we have used the built area of the project (283.03sqm), slightly inferior than the maximum allowed.
• Prime Location: high-level residentials in the area, with strong demand from buyers. The area is having a new interest due to new developments in the area of Cancelada, with developments such as Oceana, Le Mirage and Syzgy.• Prestigious Golf Course in the area such as Villa Padierna, one of the most luxury complex in the area of Costa del Sol. Moreover there are more golf courses in the proximity. Close distance to Marbella and Puerto Banús, well connected by the motorway with direct access.
Benahavis
Malaga86
Plot of landn/a
Location• The property is located in Los Flamingos Golf Course, a 18-hole golf course located in the municipality of Benahavis, beyond Marbella and Puerto Banús. It is mostly developed with low density of construction (villas) and devoted to high-level residential. • Next to Villa Padierna, one of the most luxurious hotels of Costa del Sol, the area is quite relaxing and tranquil aimed for high-income purchasers.• 5 min distance from the motorway, the property is 10 distance from Puerto Banus and its luxury shopping area. Moreover, there are supermarkets and more amenities in the area of the morotway.• The property is located in a slopped area, first golf area with open views. The property is not elevated, therefore the coastal views and golf views are more limited. • The area is consolidating as one of the the most luxurious hubs in the coast. The presence of several golf courses such as El Paraíso Golf, Los Flamingos and the American Golf Academy, makes it more exclusive and aimed for high-end residential use. • There are new developments in the Cancelada area, with residential complexs under construction such as Oceana, Syzgy and Le Mirage.
n/aSpain Number of storeys (above ground)
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3. Market Study - Sales
Type Date Site sqm Buildable sqm Price €/sqm Price €/m²builtTransaction 2017 2.884,0 n/a 1.730.000,0 600 n/aTransaction 2016 2.607,0 n/a 1.690.000,0 648,3 n/aTransaction 2016 2.688,0 n/a 2.150.000,0 799,9 n/a
Asking 2017 3.395,0 n/a 2.500.000,0 736 n/a
Type Date Internal sqm Price €/sqm Price ConditionTransaction 01/08/2016 397,0 5.500.000,0 13.853,9 Good
Asking 31/12/2018 328,5 1.899.000,0 5.780,8 Good Asking 31/12/2018 295,0 2.500.000,0 8.474,6 Good Asking 31/12/2018 451,0 2.499.000,0 5.541,0 Good
4. Summary of the valuation
4. Conclusions
Los Flamingos
Methodology Residual Sales price €/m²
Los Flamingos
Los Flamingos
Market Study. Finished product
Land Comparable Evidence
Los Flamingos Los Flamingos
Los Flamingos (2 plots)Los Flamingos (2 plots)
Subsidized Housing (sqm) Profit on cost % 9
Retail (sqm) IRR % 12
Offices (sqm)
Industrial (sqm) €/m² built € 3.533
Total development costs € 1.548.542 Market Value € € 1.000.000
Residential (sqm) 2.200 Offices
Basament (sqm) 1.400 Total income 2.779.543
Subsidized Housing
Construction Costs €/m² Retail
Prices in the area of Benahavis and Estepona are rising due to the lack of urban land in Marbella, with the rejection of Urban Plan. The property is lcoated first line golf, west orientation and benefits from open views towards mediterranean sea and golf courses. We assume a good marketability of the product in a high-level residential with villas constructions.However, the area of Cancelada is developing several constructions which come to the market thousand of new residential units (included villas) at lower ticket prices.
Conclusions
Comment on Market StudyIn order to value the property, we have sumarised completed sales transactions and asking prices of land plots to have an approach to the final value. These plots are located in the same resort than the subject property, althought the date and exact location might differ. Therefore, they are the most reliable source of information.The comparables are ranked in order of relevance. We have ajusted each comparable accordingly based on the most importance factors that affect the valuation: location, views, accesibility and buildablity. We have only considered transactions for properties located in Los Flamingos. Most of the plots of land in the area are in the range of €600-800 per sqm, depending on location, size and views. We have estimated a discount for the asking comparable of 15% due to possible negotiations.Therefore, based on the above information, and considering the first line golf of the plot under appraisal, we estimate that the current market value for the plot of land given its shorter surface is in the upper range of comprarables, above €700 per sqm of gross site area. Moreover, we have cross checked the comparable with a residual valuation method. The residential market study carried out in the area reflects sales price in the range of €2,000,000-5,500,000 for villas between 300-450sqm. All of them built with highest quality materials and contemporary design, open views and private garden and swimming pool. In order to arrive at an estimated unitary value of the properties, we have considered the 100% of internal surfaces and 50% of terraces areas. Therefore, considering its location and open views, we estimate a ticket price for the finished unit of around €2,750,000, due to its quality construction.
AdressLos Flamingos
Pre-construction (months) 4 Residential (sqm) 9.550
Construction (months) 12 Basament
Time to sale (from the end of contruction)
1
Adress
1. Property Description
Reference
AddressCityNumberProvinceCountry
Global Rating Location Market Projection
1- Very Good 1- Very Good 3-Medium
Description
Planning situation
DISADVANTAGES
2. Summary Buildable Areas
TOTAL 671,04 Subsidized Housing Hotel
Apartments Basement- Garage Equipment
Atached houses Retail Industrial
Villas 671,04 Offices Others
• The asset under appraisal comprises a plot of land with aproximately 3,728 sqm according to registry excerpt provided by the client. Currently, the property is vacant with no construction within the plot.• Next to the property is located a complex named Centro Forestal Sueco, in the Marbella Golden Mile. The property was built in 1968 and provide a lo density leisure accomodation. Initially, it was built by the Swedish forest industry as a rehabilitation center for employees, today it is open for everyone. • The full adjacet property includes a hotel distributed along two buildings with 26 hotel rooms and 20 bungalows for a total of 90 guests. It also includes conference areas, recreation and rehabilitation areas (including a heated pool), a restaurant, and an independent villa.
• Development opportunity in a very active residential area in Marbella, where similar assets are relatively scarce.• Prime Location: affluent and desirable residential location.• Location in the heart of the Golden Mile. The area will improve with new projects such as Benalus, Epic Marbella, Concept.
Marbella
Malagan/a
Plot of landn/a
Location• The property under appraisal is located in the prime area of Golden Mile, close to the prestigious residential areas of Lomas de Marbella Club, Sierra Blanca, Camojan and Nagüeles; and also walking distance to the Beach and Puerto Banús. • This is one of the most luxurious areas of Marbella. These areas mainly provide low density housing with high quality luxury villas.• Marbella Golden Mile has been one of the first locations in Marbella to be developed due to the construction of both the Marbella Club and the Puente Romano Hotel. This area is now fully consolidated and built up, leaving an oasis of tranquillity few urbanizations enjoy today. • The surrounding area is well developed with a mix of uses including high-end residential, retail with the best restaurants in Puente Romano such as Bibo and Nobu, and with some iconic hotels such as Don Pepe, Guadalpin, Marbella Club or Puente Romano.
n/aSpain Number of storeys (above ground)n/a
LocationTypologyYear of construction
PROPERTY VALUATION
Lomas de Rio Verde n/a Lomas de Rio Verde 7
Valuation DateValuation typeInspection
31/12/2018NewYes - External
9Lomas de Rio VerdeLomas de Rio Verde 7
Urbanisation
•The property was classified as urban land (and could be developed easily just with the prior application of a licence) in the Marbella Town Planning Parameters 2010, aimed for villa use. However, in October 2015, The Supreme Court declared contrary to the legal system the Development Plan (PGOU) of Marbella, and was cancelled. Therefore, this classification is no longer feasible.•Within the current Marbella Development Plan (PGOU of 1986) the plot (and a large area to the north of the propery) is designated as PA NG-1 classified as land subject for development (it would coincide with “urbano no consolidado”).•This classification requires extended planning procedures and application for a licence is not directly possible. Therefore in order to develop the plot it would be necessary to fulfil the full planning process including some project as a plot allocation project and an urbanization project.• The plot within the PA NG-1 sector measures 3,728 sqm and is designated for development. The use permitted, subject to receiving the correct planning permissions, building licences and constructing the necessary infrastructure, would be residential with a buildability of 0.2 sqm. Under this Development Plan therefore there could be development potential for villas or townhouses with buildable area of 671sqm. In that order, it would be necessary to do the full planning process with urbanization costs.
ADVANTAGES• Current classification as PA (no consolidado), and most of the purchasers are just interested in land ready to develop (urban).• Planning risks, due to the cancellation of the previous development plan• Difficulties of the town Hall to issue a new Development Plan.
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3. Market Study - Sales
Type Date Site sqm Buildable sqm Price €/sqm Price €/m²builtTransaction 2016 n/a 3.783,0 7.000.000,0 n/a 1.850 Transacción 2015 n/a 17.000,0 42.000.000,0 n/a 2.471 Transacción 2017 n/a 18.929,0 24.600.000,0 n/a 1.300 Transacción 2015 n/a 9.500,0 13.000.000,0 n/a 1.368
Type Date Internal sqm Price €/sqm Price ConditionAsking 31/12/2018 286,0 1.200.000,0 4.195,8 GoodAsking 31/12/2018 432,0 2.200.000,0 5.092,6 Good
Transaction 10/10/2018 173,0 975.000,0 5.635,8 Good Transaction 22/09/2018 202,0 1.450.000,0 7.178,2 Good
4. Summary of the valuation
4. Conclusions
The current value represents the achievable price in current situation. However, due to its prime location, despite the current classification and the expected potential result in a future PGOU, any investor would purchase the land based on a future higher buildable ratio (similar to the previous PGOU) and would “wait and see” until a new development plan is drafted. The property comprises a prime development opportunity in a very active residential area (in the context of the market) in Marbella, where similar assets are relatively scarce and which in recent years have generally been the subject of competitive tension when marketed. Moreover there is upside potential in a future Development Plan.
Conclusions
Comment on Market StudyIn the absence of planning consent for a detailed scheme, we have adopted a ‘high level’ approach and undertaken a residual appraisal based on a hypothetical scheme which we consider to be broadly compliant in planning terms. We have assumed the development of villas (permitted in the current valid PGOU document) on UE-3 sub-type with a minimum plot size of 800sqm, which result a development of a total of 4 villas after the development of the neccesary infraestructure.In order to arrive to an opinion of market value for the development land, we have analysed transactional comparable evidence for similar plots of land available and have potential for residential development. Differences in factors such as classification, location, quality, specification, design and size have been taken into account. According to plots comprables, the first comparable is a transaction for a property in a similar location, besides Alanda hotel in the Golden Mile. Due to the poorer accessibility and low consolidation of the area it can be considered as a worse location. The second evidence is a prime site in Eastern Marbella to develop a whole sector. The site is classified as aimed for development (“urbanizable”) and therefore was pending urbanisation and infrastructure costs. The location is prime in one of the finest beaches, however the transaction was for a larger quantum and therefore a lower rate per sqm. The third transaction comprises the acquisition of two plots of urban land within the Santa Clara golf course, a highly demanded location for second home. The price paid (€1,300 per sqm buildable) represent a 100% increase from transactions within the same resort a year before. This shows the lack of urban land and the renewed interest for land in Marbella. The fourth comparable is for a transaction in 2015 for a property situated in a prime location on the popular New Golden Mile. This comparable is also located close to the A-7 road and it remains a prime beach side location only 15 minutes from Marbella, in Estepona. Marbella is however a more affluent area and attracts a higher demand of international buyers than Estepona. This is driven due to its proximity to Puerto banus, local amenities, popular beaches, clubs and local nightlife; therefore we have applied a premium to the subject reference.Weighting all the above references in terms of size and exact location we consider that the value per sqm of buildable floor space for the subject property should be around 2,500€/sqm, similarly to comparable 2. In reference to the final product, we have considered an unitary value of €6,200/sqm, an average ticket around 1,000,000 per unit.
AdressIcon Homes Santa Clara
Pre-construction (months) 36 Residential (sqm) 6.200
Construction (months) 12 Basament
Time to sale (from the end of contruction)
3
Market Value € € 1.800.000
Residential (sqm) 1.250 Offices
Basament (sqm) Total income 4.851.677
Retail (sqm) IRR % 14
Offices (sqm)
Industrial (sqm)
Total development costs € 1.650.111
La Meridiana Suites
Methodology Residual
Icon Homes Santa Clara
La Meridiana Suites
Market Study. Finished product
Land Comparable Evidence
Golden MileMarbella Prime
Santa Clara
Subsidized Housing (sqm)
Arroyo Antón
€/m² built € 2.682
Sales price €/m²
Profit on cost % 46
Subsidized Housing
Construction Costs €/m² Retail
Adress
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