Touristic Residential

Mosaic specialises in the touristic residential space, the team has a sophisticated appreciation of how to efficiently add value and minimise absorption risk by delivering a product that is unique and in-line with the requirements of the current (and evolving) buyer demographic.

The touristic residential segment is often overlooked by many institutional investors, often due to seasonality and perceived reliance on third party (International) markets and their associated economies. While there are certainly some associated nuances and complexities Mosaic believes that the risks are heavily mititgated with detailed local understanding and experience and with these attributes the segment can often provide opportunities and investment returns that are simply not achievable with other asset classes.

Target Development Criteria 2020 / 2021

Mosaic typically targets the distressed acquisition of development land or completed assets suitable for repositioning from any of a number of Spanish banks (including SAREB and its service companies), institutions, corporates or via a judicial process. Regardless of the source of the asset Mosaic believes acquisition is the most important part of the investment cycle and any potential acquisition is subjected to a strict due diligence process to ensure the asset(s) are acquired at a value that allows the project to meet its investment objectives..

Apartments & Townhouses

• Small to mid-size projects typically comprising 25-150 units.
• Site locations in high demand coastal areas.
• Sites within 15min walking distance to amenities appealing to the volume touristic market segment
• Locations within 45mins of major airports serviced by high volume of regular European routes.
• Contemporary design
• Projects that enable significant unit density and below average unit sizes (from 45m2) enabling price points that target the volume buyer demographic, typically below other new-build contemporary inventory price points

Within the current environment Mosaic seeks to manage distribution risk by targeting small to mid-size projects aimed at the largest (volume) market segment which is defined by design, location and price point. As with most real estate markets the most significant buyer volume is typically found at the lower end of the pricing scale. With most purchasers preferring modern contemporary properties which are generally only available in strong locations at higher price points (lower volume market segments) Mosaic looks to differentiate from other developer offerings by offering smaller units allowing more cost effective price points without compromising on location.

Detached and semi-detached villas

Mosaic seeks to avoid the high-value market segment and offer compact and competitively priced detached and semi-detached villas typically below €1.6m threshold where the market attracts more significant transactional volume to manage absorption risk.

In addition to new-build projects, the group actively seeks distressed assets where there is the opportunity to reposition and deliver completed contemporary properties without compromising on quality or style and achieve increased value within a compressed timeline while helping to differentiate from alternative opportunities that are typically offered on an off-plan basis with longer (12-18 month) delivery timeframes and also attract additional potential buyer purchasers uncomfortable with off-plan construction.

• Independent villas & small projects of generally below 15 units.
• Independent villas & small projects of generally below 15 units.
• Site locations in high demand coastal areas within gated communities (new / established)
• Sites within short drive (10 mins) to amenities.
• Locations within 45mins of major airports serviced by high volume of regular European routes
• Compact properties between 200m2 and 350m2.
• Low to mid-range price points below €1.6m.
• Contemporary design with traditional elements where appropriate
• Modern system build techniques that improve build quality and reduce construction timeframes.

Distressed Repositioning Assets

After the 2008 financial crisis there was a significant supply of distressed assets released by banks and other institutions. Many opportunistic developers and investors were able to take advantage by acquiring the assets cost efficiently and repositioning for the current market. This approach often enabled above average investment returns (IRR) due to the combination of “below replacement value” acquisition prices and reduced development cycle timeframes.

• Maximise project rate of sale
• Maximise project rate of sale
• Minimise project absorption risk
• Increase project GDV & profitability by allowing increased sales price / m2
• Reduce project cycle timeframe improving IRR
• Optimise marketing strategy efficiency