Business for real estate investment trust in Andalusia

11 abril 2019
6 mayo 2019

To speak of Andalusia, the first autonomous community of Spain, and the second one in surface, is to speak of magnificent landscapes, a wonderful climate and extremely cordial and pleasant people. Its beaches, both facing the coast of the Atlantic Ocean, and those located on the edge of the Mediterranean Sea, are undisputed tourist attractions. In addition, it has picturesque white villages, high mountains with abundant wildlife and varied customs that are a sign of their culture. Its varied geography offers the opportunity to ski in the Sierra Nevada, practice surfing in Tarifa or enjoy fantastic equestrian routes or golf courses, as well as having magnificent sports facilities. All this makes Andalusia an ideal place for investment.

In Andalusia, like in other important regions of Europe, there has been a boom in real estate investments, which has caught the eye of investors towards a sector that is causing significant gross returns, in some cases exceeding 6% per year. Given the importance of this business in Andalusia, it is necessary to design a business scheme that involves Promoters, Family Offices, Investment Funds and Real Estate Investment Trusts.

The promoters, who are the people or teams of people (physical or legal) responsible for evaluating the feasibility of construction of housing or architectural projects in a particular area, play a very important role within this proposal for business design in Andalusia. Likewise, the Family Office, which refers to a family controlled investment group, in other words, to private company that manages investments and trusts for a single family is also a focus of interest to us.

Wealthy family capitals will surely be attracted to this region that not only offers an excellent climate and the hospitable character of its people, but the possibility of starting a highly profitable business for any investor or group of investors. Collective investment institutions, better known as Investment Funds, are also called to participate in this business design project, since they are in charge of gathering funds from different sources, and then investing them in different financial instruments; they have an indisputable importance in this plan. Finally, there is a sector no less important, to which this business design is directed, we refer to the Real Estate Investment Trust, known in Spain as Sociedades Anónimas Cotizadas de Inversión Inmobiliaria (SOCIMI). As everybody knows, they are investment companies, owners of real estate assets and whose income comes mainly from their rents. This last sector is called to participate in this business design, since within this framework of investment in Andalusia, everyone is important.

Investing is something serious and that’s why business design aimed at the aforementioned sectors, provides the opportunity to evaluate the best way to use money in real estate investments. If I had to choose a place to invest my money, that would undoubtedly be Andalusia, a region not only suitable for relaxation and rest, but with an opportunity of investment. Business design will give me the tool to make the best choice and make the best decision.