DEVELOPMENT LAND

ALCHEMY LAND INVESTMENTS - In partnership with HARRIS PENNY

Property specialists for many years have understood the value in acquiring land at agricultural or rustic prices and waiting, often for very long periods, until planning for residential purposes is granted. This process can be extremely lucrative and pay enormous dividends if successfully handled.

Sadly for most investors this process is beyond their reach as they cannot commit funds to long periods of uncertainty and therefore tend to enter the property investment arena after the vast profits have been made. This is typically through "off-plan" sales where they purchase a property before it is built and attempt to sell this on prior to the completion.

What is certain is that the developer, if he has been responsible for the re-zoning of the usage of the land, has already made a huge return on his investment even prior to putting in the first footings of the first properties, far more than the off-plan investor will ever make on that property.

Fortunately there is now an opportunity for smaller investors to benefit from this incredibly lucrative investment whilst at the same time benefiting from a unique process which dramatically reduces the time necessary to wait for planning to be approved .

The Alchemy team, with over 30 years combined experience in Southern Spain, have developed a specialist system of identifying land development projects with minimal flaws and maximum potential of planning approval. Alchemy never recommends a land project until it is totally satisfied that it can deliver a project with all necessary building licences in place. As joint venture partners in all of our projects, we would not seek to waste our time on anything that we are not 100% sure will be granted the relevant permissions.

Alchemy combine their unique system with skilfully negotiated option contracts to ensure that our joint venture partners are given the maximum growth potential for the capital which has been committed to each project.

TYPICAL EXAMPLE

Rustic land of an area of 1,000,000 square metres is located up to the highest strict criteria necessary to qualify as a project.
Land cost is €12 per square metre. An option contract is negotiated to purchase the land within two years for a price of €12 million.
The cost of the option contract is €500,000.
Alchemy and its partners require €1,000,000 to cover all relevant costs associated with the setting up of the project including project identification, in depth analysis of feasibility, comprehensive planning appraisal and legal fees.
€500,000 stays in an escrow account until the planning has been granted.

POSITION WITHIN 24 MONTHS

Land now valued at €50 per square metre. Total value €50,000,000.

Option is exercised via bank funding to purchase land at €12,000,000
Bank charges, legal fees, selling agents fees and final documentation fees of approximately 8% (€4 million)
Land is sold at market value and a profit of €34 million is generated pre tax.
Profit is divided 50% to our joint venture partners and 50% Alchemy.

Our joint venture partners have seen a return of €17million on the original capital which they committed of €2,000,000, over 8 times their original investment.

PROPOSAL

Alchemy Land Investment is seeking joint venture partners to participate in our exciting and extremely lucrative opportunities. Ideally we would prefer to enter a J-V arrangement with a single party but will take smaller amounts of €250,000 on account until a sum appropriate to an identified project is collected from a number of partners.