Maximise Your Real Estate Returns: A Unique Investment Opportunity in Marbella’s Elite Market

Today, I’d like to present an exceptional investment opportunity for medium to high-capacity investors: the acquisition of a Non-Performing Loan (NPL) tied to a luxury villa in the prestigious area of Benahavís, located near Marbella, Spain. This is an investment with significant potential, offering strong returns, and is suited for seasoned investors familiar with high-value real estate transactions.

Why Benahavís?

Benahavís, nestled in the lush hills surrounding Marbella, is one of the most sought-after locations in Spain. This municipality is renowned for its high quality of life, being home to some of the most luxurious properties and exclusive communities in the country. The benefits of living in Benahavís are many:

• Proximity to Marbella: Just a short drive away, you have all the amenities, restaurants, and nightlife that Marbella is famous for, yet without the congestion of city living.

• Tax Benefits: Benahavís residents enjoy favourable tax conditions compared to nearby municipalities, offering advantages to both individuals and companies.

• Top Facilities: Residents have access to some of the finest golf courses in Europe, renowned international schools, and a wealth of leisure options, including Michelin-starred restaurants. The area’s natural beauty is another highlight, with protected nature reserves offering excellent opportunities for hiking and outdoor activities.

• Safety and Security: As one of the most secure municipalities in Spain, Benahavís offers a peaceful, private environment, making it particularly attractive to affluent international buyers.

The Property in Question

The property under discussion is a 650-square-metre luxury villa sitting on a 1,400-square-metre plot. It features:

• Four large en-suite bedrooms

• Spacious living areas with elegant finishes

• Expansive terraces totalling nearly 50 square metres

• A private covered patio

• A lush garden and a 40-square-metre swimming pool

• A double covered parking space

Surrounded by greenery and located near a golf course, the villa is ideally positioned to take full advantage of the luxurious lifestyle this area offers.

The Investment Opportunity: NPL

This NPL offers a unique chance to acquire the debt linked to this villa. Let’s break down the specifics:

• Outstanding debt: €3.5 million with an additional €1.5 million in other obligations, bringing the total debt to nearly €5 million.

• Current market value: The villa is currently valued at approximately €2.7 million. However, with some strategic home staging (read more about home staging here), we estimate that its value could rise to €3 million, creating a healthy profit margin.

The Strategy

By purchasing the NPL from the fund that currently holds it, the investor gains the opportunity to step into the position of creditor. The legal process to foreclosure is already advanced, with the auction likely to take place within the next 6-8 months. This offers several attractive possibilities:

1. Auction Sale at Over 70%: If someone offers more than 70% of the auction value, the investor can walk away with a significant profit, as you would be entitled to the repayment of the €3.5 million debt, which you will have acquired at a much lower price. The ROI in this scenario could range between 50-60% depending on the auction outcome.

2. Taking Ownership of the Property: If no one bids over 70% of the auction value, the investor has the option to take ownership of the property. In this scenario, after assessing the market and subtracting all costs, the estimated ROI could range between 40-50%—potentially higher with further investment in home staging.

For those unfamiliar with NPLs, you can read my detailed articles on the subject here and here.

The Numbers

In summary, this operation involves the acquisition of the NPL at a price well below the €3.5 million debt amount, leveraging the judicial auction process to either:

• Make a quick profit through a successful auction bid, or

• Acquire a luxury property with significant upside potential in one of Spain's most prestigious areas.

Investors looking to take advantage of this opportunity or those interested in learning more about similar NPL deals are encouraged to get in touch with me for a detailed dossier. I am available in English, Spanish, or Italian to discuss the specifics of this or other real estate investments.

This is a genuine opportunity currently available on the market, and I strongly encourage investors with the required financial capacity to act swiftly.

Don’t hesitate to reach out for more information on how to evaluate this investment and others in Spain’s dynamic real estate market.