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In this blog post we share all the latest updates and photos from the sun-drenched construction site of our La Cañada development project in Spain.
Key facts about the La Cañada Development Project:
Collateral – owned by our SPV. The new project concept will be implemented from September 2023. The payment schedule has been changed to full lump sum payment to support the fast completion of the project.
October 2023 Update
The updated project and construction tender for the work to be carried out on the project have been finalized. The new concept is more attractive and functional from the end customer's point of view.
September 2023 Update
We are pleased to provide an important update on the progress of our La Cañada development project. Following a comprehensive audit and review by our new Spanish management team, we have developed an action plan to address challenges and successfully complete the project.
The audit showed that the construction quality of the buildings was below the agreed standard and that improvements were needed in the building layout and landscape design. This is why we had to halt construction and financing until a new policy was in place, as continuing with the same practices would lead to losses. In response, we are introducing new concepts that will increase the value of the properties and turn them into higher quality villas. These improvements will significantly increase the selling value of the completed buildings and also speed up the sales process.
We expect it will take about six months to carry out the necessary changes and complete all four buildings. The sales process will resume next month with the introduction of the new concept and the signing of new agents to attract potential buyers.
In terms of financing, the total capital required to carry out these improvements and transform the detached house into a high-quality villa is estimated at €900,000 (excluding taxes). Part of the capital will be secured through presales, while the remaining amount will be raised through our platform.
To prioritize early project completion and ensure that all investors receive the promised interest, the payment structure needs to be adjusted. Instead of monthly interest payments, these payments should be deferred until the end of the project term, meaning the project will operate as a full lump sum loan.
We understand the significance of these changes and the impact they will have on your investments, but we believe these adjustments are necessary to achieve the results we have promised to all investors involved.
We deeply appreciate your patience while we work diligently to bring this project to fruition. We appreciate your feedback and cooperation in the problem-solving process. We will provide regular updates on our progress and remain committed to delivering the high-quality development you expect.
August 2023 Update
As a result of our review, the following changes have been made or are planned:
Removal of management of the Spanish branch. Maxim Enachi and Miguel Villena are no longer involved in Spanish projects due to loss of trust. A complete audit of the construction work carried out on site. Review of the construction budget and sales plan. Review of the building plan and adjustment of the sales offer for the market. Replacement of the construction company. Adjustment of operations to allow better control over project execution.
June 2023 Update
Due to significant schedule changes, multiple construction quality issues, and lack of sales progress, we are temporarily pausing this project in order to perform a full audit of our implementation plans, operations, budgets, and to review all ongoing projects.
December 2022 Update
The foundations for the terraces and pool have been completed and all the houses are now being prepared for tiling. The internal works are almost complete. The next steps include the installation of windows and doors, followed by the façade works.
November 2022 Update
Pools and terraces are now complete on two homes, and rooftops on all homes are constructed and ready for equipment installation.
September 2022 Update
The walls are currently under construction, fence foundations, pool foundations and electrical work is underway.
June 2022 Update
The building project has been updated and adapted to the needs of modern families.
Initial state of the project as of May 2022
Last March, we unveiled our fifth project in Spain, fully developed and managed by the Reinvest24 team. The project consisted of four independent family homes with private gardens and pools. The developer had started construction but did not have enough resources to move the construction process forward. At the time we purchased the project, all four buildings had basic frames built, without walls or roofs.