Canidelo Apartments

Canidelo Apartments

Canidelo Apartments is a beachfront ground-up development. The location is zoned as commercial and services, suitable for mixed commercial and hotel development. The goal is to develop serviced apartment for sale and lease back.

  • Address:

    Lote 19, Avenida Beira Mar, V.N de Gaia

  • Total construction area:

    11,232 sqm

  • Estimated Investment Timeline:

    03.2023 – 12.2026
    (45 months)

  • Report issue:


  • Date of Issue:


  • Next Issue:


1. Project Updates

  • Two official information requests were submitted (PIP), one for a single volume building and another for two volumes building.
    • The one volume PIP request for appreciation suspension was approved in order for the allotment change to be submitted and approved.
    • The two volumes PIP will be rejected due to the volumes proposed will not match with allotment change now submitted.
    • New allotment change was submitted to city hall to change the zoning to add tourism use and also increase the number of units, and is under appreciation, we expect to have this approved by May 2024. Legal Advert was installed on the plot.
  • After the process of allotment change is completed, we could move forward with project execution and construction, no further licensing process would be required.
  • Adriano Pimenta Arquitectos, Lda conducted the concept phase and preliminary study for one volume building, that resulted in 80 units of tourism apartments. Plans of current study are shared in the photos area. The plans shared are not completely finalized and will be slightly modified in order to accommodate areas and infrastructures needed for the operation of Tourism Apartments and will be more detailed including the elevations.
    • 80 Units with 80 parking spaces
    • Mainly Typologies of 1 bedroom units and also some 2 bedroom units
    • Indoor Pool, gym and Co-Working spaces
  • Fire Safety consultant and Structural Engineer consultant, were also involved in this stage of the preliminary design in order to stabilize layouts and solutions and incorporate the requirements needed.
  • Tourism expertise Consultant also is involved in order to set out and include all the requirements needed for these type of projects (Tourism Apartments)
  • Multiprojectus from Garcia Garcia will be hired as the engineering team for the project. Multiprojectus will be responsible for the execution of projects, and construction supervision and also be involved in the concept and licensing phases. The total fee agreed upon was €220,000. (not awarded)

2. Financial Updates

  • For the 1st quarter of 2024 doesn’t exist major updates on the financial plan. Most of the updates are related with the licensing process in place for serviced apartments

    I Capital Structure & Profit Forecast

    On March 2023, the fund acquired the asset holding company (Sparkling Joy, Lda) via a combination of share purchase and shareholder’s loan (as of September, 2023 the total equity injected is €2.25M:

    • Capital: 525,000 euros
    • Shareholder’s loan: 1,725,000 euros

    After reassessment of the project's business plan we are presenting the following scenarios for equity requirements and respective profits:

    • Scenario A:
      • Total common equity required of €4.0M which will be used to support land acquisition costs and 100% of project's soft costs;
      • In this scenario would be required an additional capital injection of €2.8M. This additional cash could be provided through common equity injections or other alternative instruments such as preferred equity or debt.
      • At this stage, we do not have full visibility over the alternatives that could be applied to this project which means that the estimated profit for this scenario will need to be reviewed according to the financing costs.
      • According to the assumptions (including interest rate update) and limitations above identified we are pointing for a return of equity of 53.4%
    • Scenario B:
      • In this situation common equity will be used to support land acquisition costs, soft costs, 15% of hard costs and furniture expenses. In this scenario we have assumed an assumption where the bank loan for construction will not exceed 85% of the total amount.
      • Besides the construction loan, we are not expecting any other instruments of debt. Common equity required to this would be higher (€7.0M), however this will significantly change the return of equity to 31.9%. 

    Capital Structure & Financing
    • Total Estimated Project Cost


    • Total Capital Invested

      2,250,000.00 €

    • Debt Financing

      11,233,340.00 €

    • Construction Loan

      11.233.340,00 €

    • Equity Financing

      2.250.000,00 €

    • Common Equity

      6.910.680,00 €

    Project Profit Forecast-Allocated to Equity Investor
    • Common Equity Investor (Scenario A: Land + Soft Costs)


    • Additional Capital Required (Scenario A)

      1,884,976,00 €

    • Profit Forecast (Scenario A) - Allocated to Common Equity Investor

      2.253.350,00 €

    • Total Projected Return (Scenario A)


    • Common Equity Investor (Scenario B: Land + Soft Costs + Hard Costs)


    • Profit Forecast (Scenario B) - Allocated to Common Equity Investor

      2.253.350,00 €

    • Total Projected Return (Scenario B)


    III Project Cost Estimation

    There's no major update compare to Q3 2023 project cost estimation.

    Project Cost Estimation-Land Cost
    • Land Acquisition

      1,850,000.00 €

    • Taxes - IMT

      111,000.00 €

    • Total Land Cost


    Project Cost Estimation Chart

    Project Cost Estimation-Construction Cost Estimation
    • Total Land Cost


    • Architecture fee

      84,780.00 €

    • Permits & Fees

      120,000.00 €

    • Technical Projects

      246,632.00 €

    • Fiscalization & Consultants

      231,218.00 €

    • Project Development Fee

      1,156,088.00 €

    • Government Tax & HOA Subsidy

      27,454.00 €

    • Finance / Bank Costs - Other

      172,713.00 €

    • Utilities

      15,498.00 €

    • Insurance

      10,332.00 €

    • Marketing

      31,771.00 €

    • Accounting & Payroll

      20,664.00 €

    • Legal

      30,996.00 €

    • Other services - Overhead & Other

      25,830.00 €

    • Total Soft Costs

      2,173,976.00 €

    • Direct Costs

      12,076,410.00 €

    • Servicing/Furniture

      793,350.00 €

    • Hard Contingency

      1,139,284.00 €

    • Total Hard Costs

      14,009,044.00 €

    • Total Construction Costs (Soft + Hard)

      16,183,020.00 €

    • Total Land+Construction Cost (Soft + Hard)

      18,144,020.00 €

    • Construction Loan Interest

      1,082,549.00 €

    • Total Development Costs

      19,226,569.00 €

    IV Typology & Sales Tracking

    Typology&Sales Timeline Forecast
    • Typology

      Serviced Apartment

    • Average Size per Unit

      100 sqm

    • Average Price per Unit

      385,406.00 €

    • Average Price per Sqm

      3,849.00 €

    • Sales Timeline Estimation

    • 2024 Gross Sales Revenue(est.)

      1,040,595.00 €

    • 2025 Gross Sales Revenue(est.)

      1,387,460.00 €

    • 2026 Gross Sales Revenue(est.)

      20,696,286.00 €

    • Total Gross Sales Revenue(est.)

      23,124,341.00 €

    Sales tracking
    • No information at this stage