Managing the risks

We take steps to minimise the risk
at every stage of a project

Steps

1

Our expertise in real estate development, combined with our extensive knowledge of the local market and our thorough approach to due diligence helps us assess the true value of each project and ensure costs don’t exceed the budget

2

We only invest in buildings located in Barcelona city centre. We believe demand in Barcelona will continue to grow in the foreseeable future, while demand for urban property tends to remain robust during market downturns.

3

We target undervalued property available at a significant discount to its market value. Even if the real estate market dropped by 40%- which has never happened- the property we invest in would still return a profit.

4

By partnering with the contractor renovating the property, we make sure the interests of all parties are aligned for each project.

5

Our projects involve relatively short market exposure- our goal is to complete a project within a year at most, although the average duration is six months.

6

In the event of a market downturn, the investment committee may decide to lease the property and wait for the market to recover. In this case, we aim for a minimum yield of 7%.

Possible Risk

Liquidity Risk

Property investments tie up large amounts of capital and tend to take longer to sell than other types of assets.

Depreciation Risk

Buildings depreciate over time and maintenance can require significant investment, eroding returns.

Market Risk

The real estate market as a whole, a subsection of it or a particular location may be affected by a surge in supply or falling demand due to economic factors.

Construction Risk

During the construction phase, costs could escalate because of overruns or unforeseen complications such as structural or legal issues.

Tenant Risk

Empty buildings or tenants failing to pay rent might affect the returns on real estate investments.

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