In this blog article, we will share all the updates, as well as pictures from the construction fields of our La Canada development project from sunny Spain.
Key facts about the La Cañada development project:
- Collateral – Owned by our SPV;
- The new project concept is being implemented starting from 2023 September;
- The payment schedule changed to a full bullet to support a fast completion of the project.
The update for 10.2023
We have finalized the updated projects and construction tenders for the works to be performed on the project. The new concept is more attractive and functional from the point of view of the end customer.
The update for 09.2023
We would like to provide you with an important update on the progress of the La Canada development project. Following comprehensive audits and reviews by our new management team in Spain, we have developed an action plan to address the challenges and ensure the successful completion of the project.
The conclusions drawn from the audits indicate that the construction quality of the buildings is below the agreed standards, and improvements are required in the building layouts and landscape design. That has been the reason why we needed to stop the construction and funding until a new course has been set, as continuing the same way would have led to losses. In response, we are implementing a new concept that will elevate the value of the properties, transforming them into higher-quality villas. These enhancements will significantly increase the sale value of the completed buildings, also providing a faster selling process.
To execute the necessary changes and complete all four buildings, we anticipate a projected timeline of approximately six months. The selling process will be restarted next month, accompanied by the introduction of the new concept and the engagement of a new agency to attract potential buyers.
In terms of financing, the total funding required to implement these improvements and transform the single houses into high-quality villas is estimated at 900,000 EUR (before taxes). We will secure a portion of the funding through pre-sales, while the remaining amount will be sourced from our platform.
In order to prioritize the fast completion of the project and ensure that all investors receive the promised interest, we will need to make an adjustment to the payment structure. Instead of monthly interest payments, we will need to postpone these payments until the end of the project duration. This means that the project will operate as a full bullet loan.
We understand the significance of these changes and the impact they have on your investments. However, we firmly believe that these adjustments are necessary to achieve the promised outcome for all investors involved.
We greatly appreciate your patience as we work diligently to bring this project to a successful conclusion. Thank you for all the feedback and for supporting us in the problem-solving process. We will provide regular updates on the progress and remain committed to delivering a high-quality development that meets your expectations.
The update for 08.2023
As a result of the review we have performed or will be performing the following changes:
- Removal of the management team of the Spanish branch. Maxim Enachi and Miguel Villena are no longer working on Spanish projects due to a loss of trust
- Full audit of the construction works performed on-site
- Review of the construction budget and sale plans
- Review the architectural plans and adjust the sales offer for the market
- Replacement of the construction company
- Adjustments to the operations to have better control over the fulfillment of the project
The update for 06.2023
Due to substantial shifts in schedule and multiple construction quality issues, lack of progress in sales we are temporarily putting this project on pause to perform a full audit of the implementation plans, operations, budgets and review all ongoing projects.
The update for 12.2022
The basis for the terraces and the pools are built now on all the houses are getting ready for tiling. Internal works are almost done. The next steps would include the installation of windows and doors, as well as later facade works.
The update for 11.2022
The pools and terraces are ready for 2 houses. Rooftops on all houses are built and prepared for the installation of devices.
The update for 09.2022
The walls are now built. The basis for the fence, pool foundation and electrical works are in progress.
The update for 06.2022
The architectural projects got updated and adjusted to the needs of modern families.
The initial state of the project in 05.2022
Last year in March, we published our fifth project from Spain, which is fully developed and managed by the Reinvest24 team. It consisted of 4 independent family houses with a private garden and a swimming pool. The developer has started the construction but didn’t have enough resources to proceed with the construction processes. At the time of purchasing this project, all 4 buildings had basic frames built without walls and rooftops.