This unique property offer great opportunity for investment. We propose buying an reselling the land. The steps of investment and return are described below.
Land size: 20.900sqm
The 20.900sqm plot of land has over 7000sqm of construction on it divided in to offices, storage and old working facilities of the factory.
At the moment over 3.500sqm is rented (offices and storage), generating 20.000 euros/month in income.
Increasing the value of the land
The current value of the land in the area is between 300-400E/sqm, depending on the surface and the possibilities of development of the land.
The new Urbanistic plan approved by the City Hall at 13.08.2020, changed the destination of the land from factory to residential and commercial use, allowing the development of commercial and residential buildings with 2 undergrounds and up to 20 floors high.
With the new urbanistic plan, a total of 83.700sqm can be developed on the land divided as follows:
– 55.800sqm of residential development resulting in over 750 apartments.
– 6.700-14.500sqm of commercial, retail, and recreational areas (SPA, gym, swimming pool, etc) development.
– Over 550 outdoor parking spaces.
In order to considerably increase the value of the land, a few steps must be made.
Step1. Obtaining the demolition authorization in order to demolish the existing building and flat the land for new development;
Step2. Elaborating new development project with the architects;
Step3. Obtaining the authorization of construction
The time frame of taking the 3 increasing value steps is between 18-30months.
Investment costs and profits
Land cost: 4.700.000 Euros + notary tax 120.000 Euros
Authorization of demolition: 20.000 Euros
Cleaning the land after demolition: 250.000 Euros
Elaborating new development project with the architects: 7 E/sqm – 7×85000= 595.000 Euros
Authorization of construction tax: 150.000 Euros
.Return on investment:
20.000 Euros /month (rent) X 24months = 480.000 Euros
Land selling price: 450 e/sqm x 20.900 sqm = 9.405.000 Euros
9.885.000 E – 5.835.000 E = 3.570.000 Euros
Mention sellfreenow.com when calling seller to get a good deal