We have been instructed by a major Moroccan bank to dispose of 38 well-maintained villas within a private gated residence to the East of Marrakech.
The villas are adjacent to the Amelkis Golf Course, 5 minutes’ drive to the Royal Golf Course, The Al Maaden Golf and Residences, as well as the Mandarin Oriental Hotel.
On-site facilities in this well-kept community include a clubhouse with private pool and gardens, gymnasium, games room, tennis court, children’s playground and basketball court. The properties are in good condition, needing only light cosmetic work to ready them for sale.
A full market study has been carried out, analysing villas on sale in the district of between 200m2 and 300m2. Prices typically range from around 1000 euros per m2 up to approximately 1900 euros per m2, depending on the location, style and condition of properties. These villas are built to good specifications on good sized plots, in a nice environment, giving them a realistic valuation of 1350 euros per m2. A target price of 1225 euros per m2 has been suggested for resale, to ensure the units sell quickly.
Finance is available both for the primary investor and to end-users, both Moroccan resident and international.
A full financial model and cash flow simulation are available to investors on request.
Purchase Price: €6.670M
Transaction Fees: €450K
Refurbishment Cost: €200K
Total Resale Value: €12M
Villas: 38 totalling 9854m2
35 x 4 bed – 264m2 on plots of 391-752m2
2 x 3 bed – 206m2 on plots of 301-328m2
1 x 2 bed – 202m2 on a plot of 396m2
Purchase direct from a Moroccan bank with no commission to pay to intermediaries
Bulk transaction at 15% discount to bank’s price, up to 50% below comparable prices
Fully titled units sold freehold with no associated debts
50% LTV easily achievable to leverage capital and improve the ROI
Target resale value of 1225 euros per m2, approximately 10% below market value
12-month target timeframe to resell all units
Delivers 100% cash-on-cash return if sold in 12 months
Investment IRR of 448% based on standard mortgage terms