900k euros
Portugal
Residential
Challenge
This is an on-going project; 4 of the units are vacant and need full modernisation. Income is low (2-3% yield per annum) meaning cash funds were deployed for this purchase.
Solution
Once refurbishment has been carried out on the 4 units, the rental income for the entire block will be circa 7-8% yield. Each of the refurbished units will be worth 250k euros meaning we will then be in a position to refinance.
Outcome
As mentioned above, value will be created through the refurbishment of the units as well as the communal areas. We expect at a minimum to double the value of this block within 1 year.
