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.
  • After meeting with GaiaUrb and Tourismo de Portugal, we have to submit a change in zoning plan to add tourism use to the current use category in order for the city hall to approve our proposal.
  • The current PIP will be suspended to preserve our position in the reduced construction tax regime until the allotment is updated.
  • We expect to have the process concluded within one month.
  • 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 which will conduct the concept phase and licensing, is currently studying solution on the Main Concept, A sketch is shared in the photos area. For this first stage was agreed a total fee €35,000. Adriano will be the Leading Arquitect consultant.
  • 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)
  • Support from tourism/operation expertise was received and pointed to include further semi-independent room units into the design.
  • Typology tests are being carried out along with image conception studies. An increase of the number of units from 60 to 90 unit might be a possibility.

2. Financial Updates

  • For the 4th quarter of 2023 doesn’t exist major updates on the financial plan. Most of the assumptions remain the same when compared to the previous quarter, as follows
    • Update of all the estimations for hard and soft costs (after completion of project’s design concept). The main updates are related with the costs estimation for architecture and technical projects services;
    • Revision of sales forecast where the current estimated net revenue for the project is €21.4M;
    • Revision of capital structure (Scenario A and B)
      • Estimated total required equity for the project is now €4.0M for scenario A (Land Acquisition Costs plus Soft Costs) and €7.0M for scenario B (Scenario A plus part of Hard Costs and FF&E);
      • The construction loan for this project should be around €11.3M. The conditions of this loan were reviewed for the last quarter. We are now estimating a total interest rate of 5.5%, according to the current market conditions.

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 54.5%
  • 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 32.6%. 

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)

    2.775.704,00 €

  • 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

During 3QFY23 we have decided to put in place a different strategy for project management and architect services which not only ensures a more efficient project management process but also allows us to closely monitor construction costs through direct collaboration with the construction company's design team. This implies a project development fee update, however, taking this strategy, we will be able to obtain some cost reduction on architect, project management and also on construction costs for this project. 

The key aspects of our revised approach are as follows:

  • Enhanced Project Management by Qualiv: Qualiv has taken on the responsibility of project management, which promises to streamline operations and project execution optimisation;
  • Direct Engagement with Construction Company: We have chosen a more direct route by having Qualiv contract directly with a specialised construction firm for design services. The initial architectural work, encompassing the concept and licensing, will be overseen by an architectural services entity.
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

    1,036,767.00 €

  • Total Development Costs

    19,180,787.00 €

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