AN EXCLUSIVE INVESTMENT OPPORTUNITY
The 82m2 Apartment is part of a brand new refurbished and fully-managed, exclusive gated-resort known as Royal Marbella Golf Resort.
Why we like it
Costa del Sol with over 325 days of sunshine per year including mild winters is a true “year-round” location. Royal Marbella Golf Resort is effectively a brand-new resort that we anticipate will generate a loyal guest base over time. It benefits from being situated adjacent to a top 100 Spanish golf course (and a short drive to several other top 100 courses). The Apartment itself is very spacious and has been attractively designed with full furnishings and equipment. We believe that the investment represents excellent value for money in a market that is benefitting from exceptional tourism growth and demand for real estate.
Andrew Thompson, InvestBay
All of the apartments are already committed or sold. Investors are therefore presented with a unique opportunity to buy into the Resort early and hence profit from its expected future rental and capital value growth.
In terms of rentals, investors benefit from a rental guarantee for the first 12 months. Thereafter we have adopted occupancy rates based on the seller’s own expectations and assuming the growth pattern below. The seller has experience from managing over 3,000 units in different resorts in the Costa del Sol and other locations. Demand for the area is demonstrating significant growth with a 10% increase in tourists to the area in 2022. Added to this, as the Resort is effectively brand new, we therefore expect it to benefit from an increasing number of repeat visitors as it becomes more widely known. As such we anticipate that the rental income may grow by 10% on average over the next 5 years.
Similarly, we have also assumed that capital values will also increase by approx. 12.5% over the same period. (Currently average capital values for Benahavis are at a level of 3,969 EUR/m2 and capital values have increased 13,5% in the 12 months to December 2022, (Benoit Properties & Idealista, 2023) alone.
The resulting expected IRR (net annual return after tax) is expected to be approx. 8.44% assuming a successful exit in the target hold period of 5 years.
The refurbished apartments and buildings are all fully adapted and permitted for short-term vacation use and there will be a total of approx.120 apartments in the Resort.
The Apartment is oriented to the north with a view towards the prestigious El Paraiso Golf course.
The Resort is situated within a beautiful, natural environment just under 40 minutes drive from Malaga Airport and only 10 minutes drive to Marbella and Puerto Banús on the coast. The area is known for world class golf, beaches, gastronomy and nightlife and over 325 days of sunshine each year.
The Resort comprises seven low-rise apartment buildings with secure underground car parking, a reception/co-working area and two superb swimming pools with sunbathing decks all surrounded by lush Mediterranean gardens. The wider Resort is undergoing a full refurbishment including a full strip back to the walls of all of the approx. 120 apartments. The suites all benefit from full FF&E (furniture, fixtures, and equipment) all designed by the award-winning international interiors designer FOC including fully- equipped kitchens, hot/cold air conditioning, private terraces, bathrooms, and high-end furnishings and décor. Natural light and neutral tones ensure that all suites look and feel light, airy and luxurious.
The rooms are further complemented by services and amenities which include reception/security/concierge service and baggage storage services. A professionally equipped gymnasium, a private spa with sauna and changing facilities, a shop/mini-market and a café-bar lounge & terrace are also expected to be completed, all serviced by teams which include pool attendants, maintenance teams, cleaning, linen and landscaping teams.
The subject property is Apartment 7212 situated on the 1st floor of Block 7 which comprises 18 apartments.
The Resort is open year round.
The Resort, including the subject property, is fully managed by the experienced management company Alfesco Stays, part of the IDILIQ Group, a vertically integrated property development, management and sales company that builds on extensive experience in sales, rentals, property development and hospitality services to offer one of the broadest ranges of homes for sale and operation on the Costa del Sol. They are experts in bringing hotel and resort-based accommodation to market with over 3,000 units sold across Spain, the UK, Turkey, and the USA and over 3000 under management.