Royal Marbella Golf Resort 2

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

Buying-in early

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 % 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.