We seek period flats and old residential buildings in the historical centre that are depreciated because of need for renovation. These buildings are purchased to be restored and renovated: historical façades are restored, floorings reinforced, and interiors and utilities are completely remodelled and renovated. Our active investment approach adds value to the property producing high capital returns while improving the external image of the historical centre of the city of Valencia.

Geographic focus: We invest in Valencia City centre.

Property-type: We seek residential historic buildings and period flats in listed buildings.

End Property buyers: The end product is sold or let to young and sophisticated buyers seeking one or two bedroom apartments in period buildings that have high ceilings, plenty of light and are centrally located.

Value-added focus: We add value to the property by renovating facades and remodelling the interiors.

Conservative financing: We typically obtain 50% local bank finance through a mortgage to finance the acquisition and restoration project.

This strategy has consistently produced annual returns on equity invested in excess of 30% during the two years of company existence.

Choosing the right Area and Property

Properties must be in a good or potentially good area with excellent orientation and revaluation potential. Light and location and key factors. Favoured areas are Cuitat Vella (historical centre), Ruzafa (the historical quarter near Valencia’s railway train station) and Ensanche (emblematic avenue that wraps up the main city).
These areas have a high proportion of period properties. Properties with character that have retained their original features such as high ceilings, mobila wood carpentry and terraced balconies. More often than not, these properties are in listed buildings and there are local council grants to help with the costs of renovation-typical grants cover 40% to 60% of the costs of renovation of roof, façades and staircase.
We narrow our search to streets that are particularly appealing. Usually streets that have opened a trendy restaurant, new cafe, or shop and that is likely to attract young professionals and affluent working-class couples. There is no science here, just many years of local experience and a trained eye.
We select areas close to public transport facilities that will attract resident buyers not wishing to rely on their car to go to work. Properties must be within walking distance of an underground station, bus stop, or train station.
The appearance of skips in the street is seen as a good sign. The presence of skips indicate that new or existing residents have enough money to make alterations to their house and generally points to areas moving upmarket.
Any areas that are likely to benefit from significant public investment are a good bet, for example the Sea Port hosting next America’s Cup and the Historical Centre that has many local grants to stimulate renovation.

Likewise, properties that are near to good schools and to green spaces often have this factored in to their price.

Areas in which other developers have renovated similar buildings and have set a precedent in price per sq. metre. This is the case with Valencia’s historical centre where newly renovated properties are selling at 6,000 Eur/sq metre.

With off-street parking becoming a rarity, properties with parking spaces or garages are set to increase in value.