El Herrojo

The investment opportunity is to acquire the Non-Performing Loan (NPL) from the fund that is owning it, keep it until the auction (roughly between 6 to 8 months) and then get the benefit out of it:
- because you let someone get win the auction to then paying you back the value of the debt or
- because you’ll get the ownership of property and then you’ll sell it with profit

THE LOCATION
El Herrojo: A Luxurious Lifestyle in Benahavís, Near Marbella
Nestled within the prestigious area of Benahavís, close to Marbella, the El Herrojo community offers an exceptional living experience defined by exclusivity, privacy, and stunning surroundings. This sought-after residential development is comprised of independent luxury villas, each designed to harmonise with the natural beauty of its surroundings while providing all the modern comforts and amenities you could wish for.

Advantages of Living in El Herrojo
1) Privacy and SecurityEl Herrojo offers 24-hour gated security, ensuring that residents enjoy peace of mind in a serene environment. The privacy provided by these exclusive villas is unparalleled, allowing homeowners to relax and unwind in their private space, free from disturbances.

2) Architectural ExcellenceEach villa in El Herrojo is a masterpiece, boasting cutting-edge design and meticulous attention to detail. From expansive floor-to-ceiling windows that frame breathtaking views to high-quality finishes and open-plan living areas, these homes are built to provide an unmatched sense of luxury. Many villas include private pools, large terraces, landscaped gardens, and modern conveniences that elevate the standard of living.

3) Stunning Views and Natural SurroundingsOne of the major selling points of El Herrojo is its privileged location in the hills of Benahavís. The panoramic views of the Mediterranean coastline, mountains, and surrounding golf courses are nothing short of spectacular. Nature lovers will appreciate the proximity to the Sierra de las Nieves Natural Park, which offers opportunities for hiking, mountain biking, and outdoor recreation.

4) Close Proximity to Golf CoursesEl Herrojo is surrounded by some of the best golf courses in the Costa del Sol, including the La Quinta Golf & Country Club, offering residents easy access to world-class golfing facilities. This is ideal for golf enthusiasts seeking a home near the fairways.

Advantages of Living in Benahavís
1) A Culinary ParadiseBenahavís is often referred to as the "Dining Room of the Costa del Sol" due to its array of high-quality restaurants. The village is renowned for its Andalusian cuisine, making it a culinary hotspot in the region. Whether it's traditional tapas or gourmet meals, the town offers diverse dining options.

2) Tax Benefits for ResidentsBenahavís offers an attractive low municipal tax rate, making it a more cost-effective choice for property ownership compared to neighbouring areas. This benefit has drawn a number of high-net-worth individuals seeking a favourable tax environment.

3) Proximity to Marbella and Puerto BanúsDespite its tranquil setting, Benahavís is only a short drive from the bustling towns of Marbella and Puerto Banús. This means that residents can easily enjoy the glamorous lifestyle, luxury shopping, fine dining, and vibrant nightlife of these iconic destinations, while retreating to the peace of their villa in El Herrojo.

4) Excellent Infrastructure and AmenitiesBenahavís offers a well-developed infrastructure, with international schools, medical centres, and all essential services located nearby. The community is also known for its sports facilities, including tennis courts, equestrian centres, and wellness retreats.

Family-Friendly AtmosphereThe area around El Herrojo is perfect for families, offering a safe and peaceful environment with excellent schooling options, parks, and recreational facilities. The proximity to natural spaces also makes it ideal for those who enjoy outdoor activities with their children.

THE PROPERTY
The villa built in 1999 has an area of 652 sq mt in the property registry built on a plot of 1.406 sq mt.
It’s a 4 bedrooms and 4 bathrooms villa.
The ground floor consists of hall, stairs, corridor, distributor, kitchen, toilet, dining room and living room, and a bedroom with bathroom ensuite, as well as large covered porches throughout the floor.
The first floor consists of three bedrooms, all with en-suite bathrooms and dressing rooms, as well as almost 50 sq mt of terraces.
In the basement, which has a surface area of more than 200 sq mt, there is a garage for two cars and a service area for a machine room, storeroom, laundry room, toilet and storeroom.
The rest of the surface of the plot is destined to a garden, where there is a pool with a surface area of more than 40 sq mt.

MARKET ANALYSIS
As mentioned above, the real estate market of Benahavís is getting more and more interesting due to its proximity with Marbella and the amazing advantages offered by the municipality.
In the last year it had an increase of the 11,9% (source Idealista)

THE DEAL – NPL PURCHASE
The key points of this operation are:
1) The judicial process is in advanced status and it should arrive to auction in 6 to 8 months so the entire operation (purchase the debt, get the ownership of the property in auction and sell it) should be completed by one year depending also by the time needed by the court
2) The auction value will be 3,5 Ml€ (see the Nota Simple)
3) We are in contact with the fund and they gave us a go-forward to present them a proposal of 1,4 Ml€ to purchase the debt. It doesn’t mean that such offer will be accepted for sure, but it should be something close to that value
4) The debt that has a remaining value + interest + costs of roughly 2,5 Ml€ (see attached doc “Demanda”)
5) The funds shown interest in having the villa off their books by the end of 2024
6) The total debts plus interests of the villa are roughly 4,7 Ml€ that makes the villa not sellable on the free market because the debts are on top of the villa’s value
7) The villa internally is in good conditions and currently is not illegally occupied

If you are interested in having all the details of this operation please reach out to me directly at gnicotra@urbei.es