Andbank, an entity specializing in private banking, has launched the real estate investment vehicle Seagull Real Estate, to acquire residential buildings in the central area of La Coruña and Vigo (Pontevedra) and carry out comprehensive rehabilitation works and then market the homes, individually , to maximize prices.
It is the first product exclusively focused on the Galician market, and was born with the aim of attracting €20 million in investment (the minimum is € 250,000), which could be undertaken between five and ten operations, since to minimize risks external financing will not exceed 50%, according to Rubén Casales, director of the Andbank’s office in La Coruña at La Voz de Galicia. The potential profitability of 14% is enticing to savers, far more than can be achieved in fixed income or other conservative products, and justifies the illiquidity of the fund, which requires staying in the investment five years.
Andbank has partnered with two local partners to develop the project: Ünique Singular Properties and Desarrolla. The first is the only Galician real estate agency specializing in the prime residential sector and leader in unique assets, which will help identify investment opportunities and will be responsible for the commercialization of homes once they have been remodeled, while the second one is a construction company known for its rehabilitation work and heavy activity in the community, which will deal with the updating of the buildings.
Andbank believes that are a lot of investment opportunties in the market: “We have found very interesting buildings for their architectural uniqueness,” says Luis Touriño, territorial director of the entity in Galicia. And the head of the bank in La Coruña adds that, due to the trends observed in the market, the initial intention is to do more operations where more demand exists for this type of assets. They currently have a team of eight people analyzing more than fifty buildings, of which eight to ten will be selected. Casales explains that the investors’ response is positive, so it is expected to start development before the end of this year 2017.