RCS (Real Capital Solutions), with over three decades in the industry and based in Colorado, USA, has identified a clear opportunity on the Costa del Sol and plans to invest around 200 million euros over the next four years.
RCS Spain, a new division of RCS, recently acquired Cosmo Beach and Valley Heights at a total acquisition price of €14.95 million including rehabilitation costs. Both projects were previously in the hands of Spanish banks.
Analysts predict that the Spanish resort real estate market has hit bottom. Marcel Arsenault, founder of RCS, has a proven track record in forecasting the market and deploying capital at the right time in real estate cycles.
“We have a proven model. We have an appetite. We’re successful and we’re now on the ground in Spain with extensive talent from architects, engineers, sales and marketing teams and solid, service-minded homeowners associations in place,” said RCS managing partner Peter Wells. “We’re among the ‘first in,’ with first-hand knowledge of working in a challenging business environment with all facets of regulatory requirements, entitlements, financing and launch of product. Our model is working.”
The reasons why RCS Invested
Highest level of increase in property sales anywhere in Spain in 2013
Recent statistics provided by the Ministry of Development reported that Marbella enjoyed the highest increase in property sales of anywhere in Spain in 2013 – with a 23% increase on the previous year.
Marbella reports 4.8% growth in real estate prices!
Marbella has the fastest rising holiday home prices on the Spanish coastline (Sur in English April 2014) – view article…
Investment in the Spanish retail property sector increases three-fold in 2013
According to The Bank of Spain, foreign direct investments in property increased by 16% in the first half of 2013 compared with the same period of 2012. This is a constant upward trend with Savills reporting that inflows into Spain’s retail property sector alone jumped three-fold in 2013 (up from €320m in 2012 to €850m).
Above average rental occupancy levels
Holiday homes within 15 kilometres of the Spanish coast enjoyed an occupancy rate of 87.4% in August 2013, an increase of 2.5% on the previous year. Murcia, Ibiza and Malaga have seen the highest levels of increases in occupancy. The Institute of national statistics confirmed these findings, reporting that occupancy levels of touristic apartments in Marbella reached in excess of 86% in August 2013.
In the first half of 2014, a record-breaking 28 million tourists visited Spain, a 7.3% increase from 2013!