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URBANIZED LAND FOR SALE IN HERCEG NOVI
The land is located 600 m from the sea.
It covers the land area of 8 000 m2 and out of that 6 400 m2 netto is scheduled with the town plan to be used for the construction. All town plans have been accepted. The following step is to obtain approval and to make the main project in order to acquire construction license (construction can begin 4-6 months after the selling date).
HERCEG NOVI RESIDENTIAL APARTMENTS
Acquisition Strategy incorporates a conditional offer to be made to the owners, subject to conducting all necessary due diligence.
The Investment Strategy is to acquire and build new apartment building of 6 000 m2 brutto over the ground made possible due to land configuration and an underground parking and depot approximately 2 250 m2 brutto. The aim is to exit within a 1,5 year period from beginning construction.
The Investment Amount to be made by the Investor nears the sum of € 7,447,500.
The Total Cost Amount (acquisition, construction and related expenses) is approximately 8,45 Million Euros. The market value of the property after construction is estimated to be near the amount of €16,695,000.
SELLING SCENARIO:
Over ground residential-m2 net value 6,000
Selling price per m2 €2,500
Sale Value €15,000,000
Parking spaces underground* 88
Selling price per parking space €15,000
Sale Value €1,320,000
*Total m2 of underground parking space is 2 250 m2
Parking spaces ground 50
Selling price per m2 €7,500
Sale Value €375,000
TOTAL SALE VALUE €16,695,000 plus 17%VAT of €2,838,150 (called IN VAT)
P & L ASSUMPTIONS
Property price plus tax for buying the property (3%) €1,854,000
Agency fee 3% plus lawyer fee of € 5000 equals €59,000 plus 17%VAT of €10,030 (called OUT VAT*)
Administrative expenses (office, phone, tickets, salaries etc.) €192,000
PROPERTY SUBTOTAL €2,105,000
Total construction cost €4,485,000 plus 17%VAT of €762,450 (called OUT VAT)
Total architect, project drawings €145,500 plus 17%VAT of €24,735 (called OUT VAT)
Total city tax €712,000 plus 17%VAT of €121,040(called OUT VAT)
TOTAL PROJECT COST €7,447,500 plus 17%VAT of €918,255 (called OUT VAT)*
* In order to calculate the base for incorporate tax, the OUT VAT deducts from IN VAT, and only this total is deducted from Total Sales Value.
SUMMARY
TOTAL SALE VALUE €16,695,000
TOTAL PROJECT COST €7,447,500
TOTAL IN VAT €2,838,150
TOTAL OUT VAT €918,255
PROFIT TO INVESTORS BEFORE INCORPORATE TAX OF 9% - €7,327,605
PROFIT TO INVESTORS AFTER INCORPORATE TAX OF 9% - 6,668,121
