Valencia (Gandia) - NPL

The Opportunity: Purchasing Distressed Debt (NPL) with Significant Upside Potential

This particular opportunity involves the acquisition of a distressed debt (Non-Performing Loan or NPL) from a fund at a remarkably advantageous price. The credit, originally valued much higher, is being offered with a 67% discount following successful negotiations with the current creditor. But the true value of this investment lies not only in the discounted purchase price but in the strategic groundwork that has already been laid.

We have already initiated negotiations with the debtor, who has indicated a willingness to transfer ownership of the properties involved as part of a "dación en pago" (payment in kind) agreement. This means that, as an investor, you could potentially acquire the properties at a price significantly below their current market value. With the obstacles cleared and the groundwork prepared, this deal is nearly ready to proceed—requiring only your final input and approval to move forward.

Why Invest in Gandia?
Gandia is a city experiencing consistent growth with stable demand for both housing and rentals. However, the rental market is particularly tight, with limited supply driving a sustained increase in property prices and transaction volumes. This dynamic creates an ideal environment for real estate investors.

The properties in question are located just 3 kilometres from the beach and only 200 metres from the train station, providing a direct connection to the centre of Valencia in just 50 minutes. This prime location ensures high demand for both residential rentals and parking spaces.

The Assets: Premium Apartments and Garages
The investment package includes 19 high-quality apartments, each with an average size of 130 square metres, along with 88 garage spaces. These are prime properties, ideally suited for either rental income or resale, depending on your investment strategy.

Investment Numbers and Potential Returns
The total investment required is approximately €2.5 million, which covers the acquisition of the credit, settlement of any other outstanding debts on the properties, taxes, and associated fees.

Importantly, many of the assets are already generating income. Currently, both the apartments and a portion of the garage spaces (36 out of 88) are leased under contracts valid until January 2027. This provides an immediate, albeit modest, cash flow for the new investor, with existing leases generating an annual income of about €104,000. This translates to a guaranteed ROI of 4.26% until the contracts expire in 2027.

However, there is significant upside potential. Market analysis suggests that updating the rental prices to reflect current market conditions could increase the annual rental income to approximately €226,000, potentially delivering a ROI of between 9% and 10%.

Alternatively, there is the option to sell the properties. Preliminary studies indicate that the apartments could be sold for around €160,000 each, with the parking spaces fetching €6,000 each, resulting in a total return of approximately €3.57 million. This strategy could yield a ROI of about 56%.

Ready to Invest?
This is a live opportunity currently available on the market, and further details are readily accessible. For more information, including a full breakdown of the numbers, you can contact me directly via email in Spanish, English, or Italian at gnicotra@urbei.es.

Whether you’re looking to expand your portfolio with rental properties or prefer a strategy focused on resale, this investment offers flexible and lucrative options. Don’t miss out on this exceptional opportunity to capitalise on the real estate market in Gandia.