Málaga · Residential build-to-sell
Financing for the land purchase, the VAT generated on the sale and the construction of five luxury villas.
The operation
The transaction finances the full development of five luxury villas in the province of Málaga, in one of the locations with the highest demand for prime residential product on the Costa del Sol.
What is distinctive about this structure is not the amount but the scope. A conventional development loan covers construction costs and assumes the land has already been paid for. Here, the 12 million euro loan covers three items within a single contract: the land acquisition, the VAT generated on the sale, and the construction costs of the five units.
Financing the VAT on the sale is, in practice, the point that rules this type of transaction out of the banking circuit. It is an immediate, sizeable cash outflow with no associated collateral, which the developer recovers later through a refund. Banks rarely take it on; we build it into the structure so the developer does not have to tie up its own funds in a purely tax-driven timing gap.
The developer has extensive experience in the area and in this asset type, one of the villas was reserved before the financing closed, and leverage ratios remain in a conservative range. The expected exit is refinancing upon delivery of the units.
3 cases with a comparable structure in other markets.
Sevilla
CompletedResidential build-to-sell · 30 apartments
Financing for the conversion of an office floor into 30 apartments and for the VAT arising from the purchase.
Madrid
CompletedResidential build-to-sell · 28 units
Financing for the purchase of a former office building in central Madrid and its full refurbishment into 28 homes.
Valencia
CompletedResidential build-to-sell · 27 units
Financing for the land purchase and construction of 27 homes in Valencia, with more than 70% sold at closing.