Press release -
Quartiers secures financing for the development of villa project in Nueva Andalucia
The loan amounts to EUR 1.34 million, of which EUR 700,000 will be used for construction of the villa, and the remaining EUR 640,000 may be used by the Company for other projects.
The loan has a maturity of two years and carries an annual interest rate of 7.46 percent. At a net realizable value in excess of EUR 1.54 million, 50% of the profit is distributed to the Lender. This means, for example, that the effective interest rate at an expected net realizable value of EUR 1.8 million amounts to 12.3%.
Quartiers Chairman Jörgen Cederholm is also chairman of Strandängen Bostäder. Jörgen’s ownership in both companies is below 10%. The Chairman waived his right to vote on the issue when the board decided on financing.
The terms of the loan were the most favorable Quartiers could secure for the Amapura project. Based on the conditions of the project and the lending market in Spain, the terms were deemed comparable or superior to the market average.
Quartiers Properties is a Swedish property development company with operations on the Spanish Costa del Sol. The Company was founded in 2014 and has since built up a property portfolio of investment properties and project properties. The company develops, sells and leases property.