Investment proposal: construction of a residential complex in the center of Alanya

Deniz Estate Company offers a profitable investment offer for large investors – construction of a residential complex in the center of Alanya, 500 meters from Cleopatra Beach. Total investment: €1.5 million, profitability 32%-64%.

Cleopatra Beach

It would not be an exaggeration to call Cleopatra Beach the main resort attraction of Turkish Alanya. There is a legend according to which this place once charmed the Egyptian queen herself – Cleopatra. She was inspired by the mighty cedars that seemed to support the sky, the emerald water and the delicate outlines of the rocks framing this beach. The only complaint of the beauty was the fine sand that stuck to her feet, irritating the high-born lady. And then her lover, Mark Antony, ordered to bring here coarse golden sand from the Nile Valley, and gave this beach (along with the city) to his beloved.

Premium location is a success factor

Legends are legends, but when scientists studied the sand of this beach, it turned out that it really corresponds to the structure of sand from the Nile Valley and resembles tiny pearls. It does not heat up in the sun, remaining comfortable for feet even in the hottest weather. From this data, researchers conclude that the legend of Cleopatra's vacation here may be a real page of history.

Description of the investment proposal

The entire project consists of 5 blocks on 3 plots of land, with a total area of 4,614 square meters. The first stage of 2 blocks, 24 apartments each, will be built on plot 1178/7. The land (1380 m2) has already been purchased in the name of the developer, the design documentation is at the final stage of approval by the municipality. The construction period for the first stage: January – December 2022. The 2nd stage of the project will be built on the site: 1178/2 (2254 m2, 2 blocks of 30 apartments). Site 1178/2 is in the process of registration and will be registered to the current investor. The construction period of the second stage: April 2022 – June 2023. Site 1178/5 (980 m2) is currently on sale.

Offer for investors

The purpose of this proposal is to attract investments for the purchase of land plot 1178/5 and the construction of 1 block of 24 apartments. Land plot 1178/5 is registered to the investor(s) for the guarantee. The cost of this block of 24 apartments (plot + construction + documentation) is €1.5 million. Options: attracting one investor for the entire block, or two investors for half a block.

Common infrastructure for 5 blocks

• Center of Alanya.
• 500 meters from the famous Cleopatra beach (great location).
• The center is in demand all year round, apartments here are sold and rented out very quickly.
• Due to the high cost of land in the center, many projects consist of only 1-2 blocks. Here there will be as many as 5, which gives a big advantage compared to others.
• Excellent internal infrastructure.
• High quality repairs.
• Premium class complex.

Structure of one investment block

The block consists of five floors with apartments (24 apartments in total):

• The 1st floor includes 6 apartments (5 apartments 1+1 and one 2+1)
• The 2nd floor includes 6 apartments (5 apartments 1+1 and one 2+1)
• The 3rd floor includes 6 apartments (5 apartments 1+1 and one 2+1)
• The 4th and 5th floors include 6 two-level penthouse apartments 2+1

In total, the project has 15 1+1 apartments and 9 2+1 apartments.

Stages and deadlines for project implementation

1. Decision making: 1-2 weeks
2. Land purchase: 1-2 weeks
3. Preparation of 3D and design documentation: 2 weeks – 1 month
4. Coordination and approval of design documentation and obtaining a building permit: 2 months
5. KAT ITIFAK procedure (obtaining TAPU for apartments instead of TAPU for land): 4 months
6. Construction (in parallel with point 5): 15 months

Total project duration: 19 months

Sales of apartments in the project can start immediately after completing points 1-4 (in 2-4 months).

At the current sales rates and trends, it is realistic to sell 30-40% of apartments in the first 3 months, and 80-90% by the end of construction.

In this proposal, the first payment is 70% of the total amount (due to the expensive land, the cost of which is more than half of the project cost), the remaining amount can be paid in installments over 1 year.

Economic justification, cost price, investment return forecast

Investment: €1.5 million, 1 block: 24 apartments Average cost price of one apartment: €1,500,000 / 24 = €62,500 Average cost price of 1+1 apartments: 15 1+1 apartments, €55,000 each Average cost price of 2+1 apartments: 9 2+1 apartments, €75,000 each

Sale price of apartments at the foundation stage

1+1 on floors 1-3: €67,500 (€65,000-€70,000) 2+1 on floors 1-3: €95,000 (€90,000-€100,000) 2+1 penthouses: €115,000 (€110,000-€120,000) Prices are shown after deduction of discounts and commissions

Sale price of apartments at the end of construction

1+1 on floors 1-3: €82,500 (€80,000-€85,000) 2+1 on floors 1-3: €120,000 (€110,000-€130,000) 2+1 penthouses: €145,000 (€130,000-€160,000) Prices are shown after deduction of discounts and commissions

Return on investment at different stages

At the foundation stage: 15 1+1 apartments at €67,500 = €101,2500 3 2+1 apartments at €95,000 = €285,000 6 2+1 penthouses at €110,000 = €690,000 Total revenue per block (minus discounts and commissions): €1,987,500 Net profit: €487,000, profitability 32.5% At the end of construction stage: 15 1+1 apartments at €82,500 = €1,237,500 3 2+1 apartments at €120,000 = €360,000 6 2+1 penthouses at €145,000 = €870,000 Total revenue from 1 block (minus discounts and commissions): €2,467,500 Net profit: €967,500, profitability 64.5% Taking into account the financial investment model and sales model, the return on capital will be higher than the project profitability. It will reach 50-70% per annum. We will send the financial model and sales model upon request.

Cleopatra Beach today

This beach began to attract tourists in the middle of the last century. However, the first thing they noticed was not the azure water or the golden sand. Oddly enough, it was the nearby Damlatas Cave that attracted tourists. It turned out that its air has a beneficial effect on asthmatics. The air of the beach itself is also healing due to the proximity of the mountains and the sea itself. The sandy strip of the coast stretches for almost two kilometers towards the city of Manavgat and is separated from Alanya itself by a wide boulevard, which in itself is the center of tourist life in this resort town. Beyond the boulevard there are hotel complexes, cafes, restaurants and other infrastructure. There are only various water attractions on the beach. Entrance and showers on the beach are free. Sun loungers and umbrellas are paid. The safety of the beach and vacationers is provided by various private security companies and the Turkish coastal rescue service.

Other attractions near Cleopatra Beach

There are many picturesque caves here. In addition to Damlataş, tourists should visit the Phosphorus Cave, the Pirate Cave and the Lovers' Cave. The beach itself is located at the foot of the cape, on top of which is an ancient Alanya (Seljuk) fortress. Near it is the symbol of the city itself – the octagonal tower Kizil Kule (Red Tower)

Beach infrastructure and recognition

Cleopatra Beach has been repeatedly awarded the international Blue Flag award, which has been given to beaches around the world since 1987. This award means that the beach meets high standards of water quality, cleanliness, safety and environmental friendliness. It is awarded by the Environmental Education Foundation, which consists of 65 organizations from around the world. In fact, this is a city beach, the territory of which is “divided” between hotels and sanatorium complexes. Entrance to the beach is free, but all entertainment and additional comfort are paid. There are usually a lot of people, since there are a large number of hotels and recreation areas nearby, the entrance to the water is comfortable, but in some places the depth begins quite sharply. The climate here is very mild, warm and sunny due to the mountains, which do not allow cold winds to blow over Alanya. Therefore, the water warms up quickly and comfortable swimming is available from May to November. The hottest months are July and August, the most comfortable months for rest are June and September. [special_block]