Introduction
Situated on Albania’s Adriatic coast, the Cape Rodoni Resort & Spa development has what we think is an unbeatable pre-offplan entry point of just €588 per m2. This is a rare opportunity to buy quality frontline European investment property at such a low price.
The site looks over sandy Lalezit Bay, just 20km from the country’s only international airport and 35km from the capital Tirana. A new motorway link is currently being constructed that will slash the journey time between our site and the capital Tirana from 1 ½ hours to just 30 minutes. The quick journey time to the capital and the country’s only international airport will increase rental demand for our new high-end development from local commuters, tourists and business travellers alike.
The developer has agreed to release 40 strictly limited units at the price of €588 per m2. There is a mix of 40m2, 60m2 and 80m2 units available. And in a deal unheard of in Albania we’ve negotiated all R2i investors a 3-year 8% rental guarantee.
Albania is a country looking to the future and the time is right to look for investment property early on in this emerging nation’s development cycle.
In Albania, the cost of build, that is land plus construction, is around €500 per m2 (compared to around €1,500-€2,500 per m2 in, say, Montenegro). Why, then, is the developer at Cape Rodoni prepared to sell his first 40 units pre-offplan at the incredible price of just €588 per m2, just a small amount above his cost price?
In countries such as Albania, where finance for land is difficult to obtain, a developer will look at how much return he makes, euro on euro, in relation to the amount of money he has to tie up in a project. By selling a proportion of the development at virtually cost price, with a bit of ‘buffer’ room built in, the developer can raise the money required to purchase the land and kick-start the approval of build licences quickly. This diminishes the amount of his own capital he must put into the deal and therefore his return on capital (euro on euro) becomes larger.
This is great news for you. It means you can purchase a unit at effectively the cost of build and by selling it on at market price close to completion, make the equivalent profit on it as a developer normally would.
Purchase security
The purpose of these early pre-offplan sales is to generate sufficient funds for the Cape Rodoni project to commence. This must happen by mid-January. Your monies will be held in a secure R2i client account until this point. If insufficient capital is raised then your money will be returned to you in full.
Assuming the project commences, having paid 100% of the purchase price of your property, your capital will be secured by a first charge over the development land. This means that if anything was to go wrong and the development land had to be sold, monies generated by its sale would be used to pay you back first.
Rental security
The developer is offering a three year, 8% per annum gross rental guarantee. The development will be marketed intensely over this period, but as with any new resort, it may not achieve maximum occupancy levels from day one. The rental guarantee protects the investor by providing income during the ‘bedding down’ period, and as further security, the developer will set aside sufficient funds to top-up the guarantee, should the project fail to deliver necessary income.