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In this blog post you can find all the latest updates on this project and follow the construction work with photos.
Important facts about Xirivella housing project:
Collateral – owned by our SPV. It is a lump sum loan, so at the end of the loan term, both the principal and interest are repaid.
March 2024 Update
The new construction company, which took over management in the autumn and had access to the building, carried out an assessment of the completed and pending works. Two further phases were published on the platform and funded, as the estimated costs to complete the construction amounted to around 150,000 euros (excluding tax). It was then discovered that there were further outstanding debts related to the architect team, the electricity company and other services. Some work had to be redone due to poor quality. In addition, two apartments required replacement of furniture and equipment, and major renovations were required, as the building was used by Kirsan Building SL as staff accommodation. Also, the outstanding issue of the storage room remains a challenge and requires attention towards the completion of the project.
During the planned construction works, further problems were discovered, such as electrical plugs mounted on the walls not being connected to the electrical circuit, drainage pipes not being properly connected, and problems with ventilation in parts of the building, especially the underground car park. Pending work was required to remove construction dust residues from elements such as air conditioner pipes, resulting in significant clean-up costs alone exceeding €6,000. All these additional works added up and required more time, funds and work.
Work carried out after taking over the Xirivella land:
Restoration of paintwork, correction of defects, repainting of walls. Correction of the ventilation system in the apartment, including cleaning and restoration of the ventilation shaft. Partial dismantling and renovation of the kitchen, replacement of parts and completion of installation. Replacing the door and installing glass panels in the door. Partial replacement of the parquet floor and installation of skirting boards. Sealing of windows to address leakage problems. Reconstruction of an incorrectly installed shower cabin, installation of a shower and faucet, checking ventilation in the bathroom. Checking the outlets, installation of wiring and electrical wiring in the apartment. Reassembly and replacement of boxes of electrical panels to correct improper assembly. Installation of communication infrastructure in the apartment, installation of antennas, television and Internet connections. Renovation of the garage area, including finishing work, realignment of the entrance and correct positioning of the garage door. Installation of a ventilation system and fire protection measures in the garage. Installation of facade lattices. Thorough cleaning of all apartments, buildings and garage premises.
Sales Process
The sales process for the Xirivella apartments is currently underway and is being managed by the real estate company Demidoff Grupo Inversiones in collaboration with several real estate companies and agents. Currently, one in ten apartments is reserved, with potential buyers regularly visiting the property.
September 2023 Update
The residential building in Silivella is nearing completion under the guidance of our new management team. The construction work is expected to take up to two months and has a budget of 150,000 euros (excluding VAT and related costs). The main focus is on addressing quality issues regarding the paintwork, plumbing, electrical systems and waterproofing. In addition, special attention has been paid to the interior finishes, giving the units a fresh and attractive look, which will greatly benefit our sales strategy. At the same time, legal matters related to the commissioning of the building are being diligently handled, with an estimated duration of up to three months and the sales process predicted to take up to five months.
With a clear timeline and focused vision, we are determined to expedite the final stages of the project including construction, legal matters and sales. Through the implementation of improved project management and sales strategies, we are committed to bringing this project to a swift and successful completion. With the plans we have in place, it is realistic for this project to be paid off by the end of this year.
February 2023 Update
The elevator has been installed, the building is currently being inspected and the final documentation for commissioning is being prepared.
October 2022 Update
Today, stages six and seven have been completed, resulting in the repayment of €150,000 of principal to investors.
As currently scheduled, Stage 8 will finish on December 26th, and Stages 9 and 10 will finish on January 26th. We may finish earlier, but we are working to finish as soon as possible.
September 2022 Update
Currently, the apartments in the Xirivella building are complete. The last element that needs to be completed before the building can be put into operation is the car elevator that connects to the underground car park. A new model of elevator had to be approved by the city architect, as the model approved by him is no longer in production. At the moment, the necessary permits have been obtained and the schedule for the elevator installation is 2-3 months.
Please note that interest on this project will accrue until fully repaid, so any delays will be compensated. Comparing the current value of the apartment with the remaining loan amount, the LTV is less than 40%.
June 2022 Update
The Xirivella housing project is nearing completion. The fourth phase was completed in May, giving investors a profit of 14.5% per annum. The last completed phase was the fifth phase, which resulted in the repayment of 125,000 euros in principal and interest. We are currently finalizing the sales process, which may result in slight changes to the repayment amount for the final phase. We expect it to take between 2 and 6 weeks.
April 2022 Update
Greetings from sunny Spain. The Xirivella project is repaying the next stages to the participating investors. This time it is the second and third stages, which will repay the principal of 100,000 euros to the investors, earning an annual interest of 14.5%. The fourth stage will be repaid in the last week of April, and the remaining six stages will be repaid during May.
February 2022 Update
We are happy to announce that the first phase of the Xirivella housing development project has been repaid to investors and 15.8% Xurray per year has been paid to all those who participated in the project.
January 2022 Update
Reinvest24's first Spanish project is nearing completion. The original plan was to finish in January 2022. Due to COVID-19 restrictions, the bureaucratic process has been slower than expected, with local authorities only open one day a week instead of five. So the first phase was repaid in the second week of February, with the remaining phases being repaid one by one by the end of April.
As you can see in the photos below, we have been able to fully develop the inside of the building. All apartments now have laminate and tiled floors, new windows and doors. The rooms have been equipped with new bathroom and kitchen furniture. All apartments are now ready to welcome new owners. 3 out of 10 have been sold and the rest are reserved. Our investors can also purchase these properties, so if you want to buy a property in a developing area near Valencia, feel free to contact us or visit this website.
Video Updates August 2021
May 2021 Update
Today, we have successfully acquired the Xirivella property and started the project development. The majority of the architectural work has already been completed by our lead architect. This includes drawing up the apartment plans, selecting suitable materials for reconstruction and specifying the project requirements. Construction work has already started and is ongoing on site. Our Reinvest24 Spain team visits the construction site every week and personally monitors the process.
We have also already started the sales process for the apartments: this week our Spanish team will meet with the first potential buyers to show them around the building, although construction works are still ongoing. If you are also interested in buying an apartment in our Xirivella project, you can find more information here.
plan
Initial state of the project in November 2020
When we acquired this project, the facade and internal site looked like this. We have started renovating the apartments and will proceed with this as soon as we receive the permit for the facade work.
Find out more about this property and investing in Spain here.
Wondering what the potential is in Spain and who at Reinvest24 manages the project on a day-to-day basis? Read our insight into the Spanish real estate market and meet our Spanish team in the article below.
Overview of the Spanish real estate market: trends expected in 2021, Reinvest24 opens branch in Spain,
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