Insider updates on Xirivella residential development project
In this blog article, you will find all the recent updates on this project and follow its construction works in pictures.
Key facts about Xirivella residential project:
- Collateral – Owned by our SPV;
The update for 03.2025
During November 2024, significant efforts were undertaken to address the impact of the catastrophic flood that struck Valencia on October 29. The disaster resulted in 220 fatalities and caused damages exceeding €20 billion. Several areas of the city were severely affected, including the Xirivella project site.
Flood Damage and Restoration Efforts
The Xirivella apartment building experienced severe flooding, particularly in the garage and parking areas, where water levels reached the ceiling. The floodwater was not clean but carried sand and dirt, further complicating cleanup efforts. Key damage points included:
- Approximately 600 tons of water were pumped out from the underground levels.
- Two elevators were significantly damaged. The car elevator was completely submerged, while the passenger elevator suffered mechanical and electrical failures, including damage to its bottom-floor mechanisms, doors, and electronic components.
- Structural damage affected walls, gates, ventilation systems, electrical wiring, sockets, switches, locks, and doors.
- Over a ton of accumulated dirt and debris had to be cleared from the affected areas.
After the flood and the damages caused by it the significant progress has been made in the past months, particularly in infrastructure restoration and final preparations for commissioning:
- Electrical and Structural Repairs: The work completed by electricians, painters, locksmiths, and floor-marking teams has been accepted. This includes replacing flood-damaged wiring, restoring lighting, repainting external walls, and replacing locks that were rendered inoperable by water damage.
- Elevator Restoration: The original team responsible for the car elevator visited the site to assess the damage. Their repair offer was accepted and paid, with replacement parts ordered. Meanwhile, we are still awaiting an offer for the second elevator from the manufacturer, despite multiple follow-ups.
- Ventilation System Repairs: The ventilation company, has begun work on restoring and fixing the damaged systems, ensuring proper air circulation and compliance with building standards.
- Final Architectural Review: The architect conducted an additional site visit to compile a list of other fixes required before commissioning. These are being addressed to ensure a smooth finalization process.
Legal and Administrative Challenges
In addition to physical repairs, an unexpected administrative issue was discovered regarding the división horizontal (horizontal property division). Due to a failure by the previous project management team, the registry currently lists the building as a 8 apartment building rather than 10 individual apartments. This issue must be rectified to complete the commissioning process.
Furthermore, a complication has arisen concerning the ownership of the storage units (trasteros). The entity listed as the owner is currently in bankruptcy, with its administrator being a lawyer representing Kirsan in an ongoing legal dispute. As a result, the notary has refused to approve the división horizontal without 100% owner consent, requiring legal intervention.
A specialized legal team has been engaged, and we are actively working to resolve these matters to get to the project’s completion.
Next Steps
- Completion of ventilation system restoration.
- Replacement of damaged parts of the car elevator, pending timely delivery of parts.
- Securing an official repair offer for the second elevator.
- Addressing minor architectural fixes.
- Advancing legal proceedings to finalize the división horizontal and resolve legal complications.
The update for 03.2024
Upon taking over the management, and gaining access to the building, in the autumn the new construction company undertook an assessment of the completed and pending works. The estimated cost to finalize the construction amounted to approximately 150,000 EUR(w.o. taxes), therefore 2 additional stages were published and financed on the platform. Later on, we discovered that there were additional outstanding debts related to services by the architect team, electric company, and others. Some tasks needed redoing due to substandard quality, further compounded by the need for extensive refurbishments after the premises were utilized by Kirsan Building SL for accommodating their staff, necessitating furniture and equipment replacements in two apartments. Challenges also persist with unresolved issues in the storage rooms, demanding attention to achieve project completion.
During the planned construction works, many more issues were discovered, for example, the electric plugs attached to the walls were not connected to the electric circulation, draining pipes were not connected properly, and issues with ventilation in some areas of the building, especially in the underground garage. A substantial cleaning costs alone were over 6,000 EUR, as pending works required to eliminate construction dust residue from elements like the conditioner pipes. All these additional works added up, requiring more time, funding and work.
Conducted works after taking over the Xirivella property:
- Remediation of painting work, rectification of defects, and repainting of walls.
- Rectification of ventilation systems in apartments, including cleaning and restoration of ventilation shafts.
- Partial dismantling and renovation of kitchens, replacement of parts, and installation completion.
- Replacement of doors and installation of glass panels in doors.
- Partial replacement of parquet flooring and installation of skirting boards.
- Sealing of windows to address leakage issues.
- Reconstruction of incorrectly installed shower cabins, installation of showers, taps, and verification of bathroom ventilation.
- Installation of sockets, wiring, and verification of electrical wiring in apartments.
- Reassembly of electrical panels to correct improper assembly and replacement of boxes.
- Establishment of telecommunication infrastructure, installation of antennas, TVs, and internet connections in apartments.
- Refurbishment of the garage area, including finishing work, realignment of entrances, and correct positioning of garage doors.
- Installation of ventilation systems and fire safety measures in the garage.
- Installation of a facade grate.
- Comprehensive cleaning of all apartments, the building, and the garage premises.
Selling process
The sales process for the Xirivella apartments is currently underway, managed by the real estate agency Demidoff Grupo Inversiones in collaboration with multiple real estate agencies and agents. Presently, one out of the ten apartments is reserved, with a steady flow of potential buyers visiting the property.
The update for 09.2023
The residential building in Xirivella is nearing its completion under the guidance of our new management. The construction works, which are expected to take up to two months and require a budget of 150k EUR (without VAT and related expenses), primarily focus on addressing quality issues related to painting works, plumbing, electrical systems, and hydro isolation. Additionally, special attention will be given to the interior finish, ensuring the units have a fresh and appealing look that will greatly support our sales strategy. Simultaneously, legal matters related to the commissioning of the building are being diligently handled, with an estimated timeframe of up to three months, and the selling process is projected to take up to five months.
With our clear timeline and focused vision, we are determined to expedite the final stages of the project, encompassing construction, legal matters, and sales. Through the implementation of improved project management and sales strategies, we are dedicated to swiftly reaching a successful completion of this project. With the plan we have in place, it is realistic that this project will be making repayments at the end of this year.
The update for 02.2023
The elevator has been installed. The building is now being inspected and final documentation for commissioning is being prepared.
The update for 10.2022
Today, stages 6 and 7 have been exited, successfully repaying back to our investors the principal of EUR 150 000.
As currently stated in the schedule, we will be exiting stage 8 on 26th of December and stages 9 and 10 on 26th of January. There is a chance the exit will happen sooner, we are working towards making them as soon as possible.
The update for 09.2022
As of now, the apartments in the Xirivella building are ready. The last element that needs to be finalised before commissioning the building is the car elevator that leads to underground parking. Since the model approved by the city architect is not produced anymore, the elevator of the newer model had to be approved. At the moment the necessary permissions are obtained and elevator installation timeline is 2-3 months.
Please, kindly note, that the interests for this project accrue until it is fully repaid, so any delays are compensated. The current value of the apartments compared to the remaining financing amount has LTV below 40%.
The update for 06.2022
Xirivella residential project is moving to its end. In May, the 4th stage was exited, earning our investors 14.5% p.a. The very last exited stage was the 5th stage, repaying back the principal amount of EUR 125 000, together with interests. We are currently finalizing the sales process, but there is a possibility that the repayment for the last stages will shift slightly. We estimate it can take from 2 to 6 weeks.
The update for 04.2022
Greetings from sunny Spain and Xirivella project, which is repaying the next stages to our participating investors. This time it’s the 2nd and 3rd stages, which are repaying back to our investors EUR 100 000 of principal, earning 14.5 % p.a. The 4th stage will be repaid in the last week of April and the last 6 stages will be repaid back during May.
The update for 02.2022
We are glad to announce, that the very first stage of the Xirivella residential development project got repaid back to our investors, who have earned 15.8% p.a. Xurray to everyone who has participated in it!
The update for 01.2022
Reinvest24 first Spanish project is moving close to an end. The initial plan was to finalize the exit in January 2022. Due to COVID-19 restrictions, the bureaucratic process was slower than expected, as the local authorities are open now 1 day per week instead of 5. Therefore the first stage will be repaid in the second week of February and the rest of the stages will be repaid one by one until the end of April.
As You can see in the pictures below, we were able to fully develop the inside of the building. Now all the apartments have laminated and tiled floors, as well as new windows and doors. The rooms are equipped with new bathroom and kitchen furniture. To date, all the apartments are ready to welcome new owners. 3 out of 10 apartments are sold, the rest are reserved. Our investors are also able to purchase these premises, therefore if You are looking for buying the property in the developing location near Valencia, kindly feel free to contact us or check this website.
Video update for 08.2021
The update for 05.2021
As of today, we have successfully acquired the Xirivella property and started with the project development. The biggest part of architectural works is already done by our main Architect. This involves the creation of apartment plans, choosing the right materials for reconstruction and specifying the requirements for the project. The construction works have already been started and are ongoing on-site. Our Reinvest24 Spain team is visiting the construction sites on a weekly basis and monitors the process personally.
Also, we already started with the selling process for the apartments. This week our Spanish team is meeting the first potential buyers and showing them the premises, although construction work is still ongoing. If You are also interested in buying the apartment of our Xirivella project, you can find more information about it here.
The plan
The initial state of the project in 11.2020
When we acquire this project, the facade, as well as insider premises looked like this. We started to renovate the apartments and as soon as we receive the licence for the facade works, we will proceed with this.
See more details of this property and invest in Spain here.
Wondering what potential we see in Spain and who from Reinvest24 is managing this project on a daily basis? Take a look at our insights about the Spanish real estate market and meet our Spanish team in the articles below: