EL MADROÑALPlot for sale

Plot Size: 5,668m2

Permission to Build 20% Density

Price: €295.000 (discounted by €155.000)Price per m2: €52

An Outstanding Opportunity

EL MADROÑAL

Area Overview - La Reserva del Madroñal

LocationLocated directly opposite the prestigious La Zagaleta country estate, La Reserva del Madroñal is a stunning retreat in the midst of unspoilt nature with amazing views over the Mediterranean and the famous landmark mountain, La Concha, yet within easy reach of sport, leisure and entertainment facilities. Marbella is just twenty minutes away and the cosmopolitan port of Puerto Banús is even closer.

SecurityThe estate is secured via six gated entrances each of which has access either via a remote control or video entry for guests. In addition 24 hour patrolled security and strategically placed cameras ensure peace of mind for all.

PrivacyA minimum plot size of 2,600m² has been implemented to ensure utter privacy and harmonious integration of homes into the environment. Set amidst poplars and fragrant pines, it is a location that will be fully appreciated by those looking for an exclusive residence in one of Southern Spain´s finest addresses.

ExclusivityLa Reserva del Madroñal is home to some of Europe´s finest mansions and palaces. The area has consistently attracted the rich and famous, and is a popular haven for those seeking to escape the prying eyes of the world´s media. Former guests and residents have included Baroness Thatcher, the Goldsmith Family, Princess Diana, Kylie Minogue, Mariah Carey, and countless well-known stars from the worlds of sports and entertainment.

EL MADROÑAL

The Plot

The large plot of 5,668m2 occupies an entire hillside, with a south-easterly aspect affording views across a green valley and towards the Mediterranean. Like most of the plots in El Madroñal, the land slopes from the road to the valley floor, in which a natural stream provides a marvellous acoustic backdrop during the winter months.

Importantly, this particular plot benefits from a width of over 70 metres, meaning that it´s possible to construct a villa in many different ways and styles, offering a solution for a wide range of budgets. The plot is also located at the end of one of the private country lanes within the estate, affording the owner ultimate privacy.

EL MADROÑAL

The Investment Opportunity

Cut-Price Land in an Established EnvironmentEl Madroñal enjoys a track record dating back over 40 years, and the vast majority of plots have now been developed. Available land in the area is therefore hard to source. This plot has a ´per square metre´ price of just €52, making it by far the cheapest plot within any of the 5-star country estates in the area. Even the nearby development of Los Arqueros (considered to be a less exclusive address) has an average ´for sale´ land price of over €300 per square metre, while land prices within the neighbouring La Zagaleta estate can run to over €400 per square metre.

The buyer of this plot will have 2 post-purchase options:

1. Land-BankingAlthough Spain has undoubtedly suffered as a result of the recent worldwide property slump, it is widely acknowledged that the most desirable and exclusive areas will be the first to emerge from recession and are still held in high regard. For sure, these areas include the very small number of guarded and secure villa urbanizations, such as La Zagaleta, El Madroñal and Sierra Blanca. With neighbouring land prices being so much higher even in this current climate, the buyer of this particular plot could expect to see a significant uplift in value, certainly within the medium-term, and most probably within the short-term.

Villa in El Madroñal

EL MADROÑAL

An alternative to this strategy would be to construct a larger house, similar to the mansions that are commonly found within the neighbouring La Zagaleta estate. A top-spec mansion of around 700m2 would likely cost in the region of €1.4 million to €1.5 million to construct. Villas of this type would commonly fetch a price of around €4 million within La Zagaleta, but even if you allow for a more realistic sales price within El Madroñal of around €2.5 million, this would still create a substantial margin of between €700,000 and €800,000 for an investor. It should also be noted that mortgage finance of up to 70% of the construction costs could be made available during the build cycle, subject to status.

Whichever option is chosen, one thing is sure. The finished project will dominate the entire hillside and, due to the linear nature of the plot, would certainly make an impressive´statement´.

If an investor wishes to retain the property after completion, one can expect a typical rental income of between €5,000 and €7,000 per month for a luxury 5 bed villa within El Madroñal on a long-term let, or alternatively for short holiday lets, a figure of approximately €5,000 per week could be expected for high season bookings.

2. Developing the Plot & Exit OptionsDue to the width of the plot, there are several ways in which to develop the land. Architect´s plans have already been drawn up for a 5 bed villa of around 450 m², with a projected build cost of between €750,000 and €850,000, depending on the specifications chosen to finish the project.

Villa under construction on a similar plot in Monte Mayor Country Club

CGI – proposed villa design

Therefore, for a total cost (land plus project) of between €1 million and €1.2 million, it should be possible to create a stunning property that could be expected to achieve a sales price in excess of €1.5 million, even in today´s market.

EL MADROÑAL

El Madroñal - in The Media

“Situated on the exclusive El Madronal estate, near Puerto Banus, Villa Tranquilo, which has a bar and cinema, attracts a top crowd. Its owner has let it to the Tottenham Hotspur footballer Jermaine Jenas.

It’s now on the market for £2.5 million through Carrington Estates, but it’s bringing in money while the owner waits for a buyer *.

He charges £6,800 a week in high season and £4,000 in low and has made £54,000 this year”.

* This property was sold by the developer for a substantial profit in 2010

EL MADROÑAL

“Luxury, tranquility and privacy. You can soon see the pretty multicoloured faux village of La Heredia, impossibly clinging to the side of the mountain, a sort of Spanish Portmeirion. La Heredia forms the southern most point of the luxury estate of El Madronal.

Like no other development, El Madronal gives little impression of being a planned residential estate. The luxury villas that are scattered along the hills and valleys are all totally individual save that they share a country style of architecture. The distances between them seem more reminiscent of a remote community built over several centuries. The truth is of course that they are only 15 minutes from Puerto Banus and the majority are between 2 and 15 years old. The local authority slapped a density of build ruling on this area and it is impossible to build on more than 20% of the allocated plots.

The connecting roads lead off 6 separate gated entrances all of which snake through the pine covered hills to several private villas.

The tranquility and privacy of this area as well as the spectacular Mediterranean views have ensured its popularity. Proximity to the centre of coastal action suggests that this is rural Spain for softies, Andalucia country living without the toil and strife and what a fantastic fusion of town and country it is. As you drive along these private avenues, there is a definite feeling that the residents of these beautiful villas share a common secret that you have been left out of. A sort of fellowship of “smarty pants” who know that they can trade tranquility for the fast lane whenever they choose.

Villas here start at around €1,000,000 for plots near the road rising to €17.500,000 for a hill top palace at the centre of the estate.

24-hour security patrols and electronic gates bring peace of mind and although use of a car is imperative there are two excellent restaurants and a late night supermarket just a couple of minutes from your front door.

A pretty good way to exist we think”.

EL MADROÑAL

Price Comparison Data

Plots for Sale - Neighbouring Locations

Alternative Plots for Sale - El Madroñal

Actual Plot for Sale

Area

La Zagaleta

Marbella Club

Los Arqueros

Monte Mayor

Total

Area

El Madroñal

Area

El Madroñal

Plot Size

5,818 m²

5,000 m²

5,000 m²

5,320 m²

3,482 m²

5,000 m²

Plot Price

€1,500,000

€1,350,000

€800,000

€1,000,000

€400,000

€798,000

Comments

Includes project design

Includes project design

Includes project design

Includes project design

Total Land Mass

66,115 m²

63,031 m²

29,589 m²

7,581 m²

166,316 m²

Total Land Mass

29,620m²

Land Mass

5,668 m²

Total Price

€26,700,000

€12,230,000

€9,281,000

€1,319,000

€49,530,000

Total Price

€5,848,00

Price

€295,000

Avg Plot Price

€2,427,273

€873,571

€662,929

€439,667

€1,179,286

Avg Plot Price

€974,667

Avg Price per m²

€403.84

€194.03

€313.66

€173.99

€297.81

Avg Price per m²

€197.43

Price per m²

€52.05

Plots

11

14

14

3

42

Plots

6

EL MADROÑAL

Villas for Sale in El Madroñal

Plot Size

2,350m²

5,000m²

3,878m²

5,000m²

1,830m²

6,100m²

5,100m²

4,000m²

5,100m²

3,400m²

5,300m²

15,000m²

13,198m²

4,480m²

10,000m²

35,000m²

Build Size

190m² + terrace

273m² + terrace

270m² + terrace

279m² + terrace

318m² + terrace

301m² + terrace

411m² including terrace

600m² including terrace

980m² including terrace

688m² including terrace

930m² including terrace

1,100m² including terrace

771m² including terrace

1,038m² + terrace

870m² including terrace

2,000m² including terrace

Price

€995,000

€1,175,000

€1,400,000

€1,495,000

€1,595,000

€1,750,000

€1,900,000

€2,495,000

€2,650,000

€2,950,000

€2,950,000

€3,500,000

€3,800,000

€4,400,000

€7,995,000

POA

Bedrooms

3

4

4

5

5

4

5

5

5

5

5

7

5

7

4

10

Bathrooms

2

4

4

3

5

4

5

5

5

5

5

7

5

4

4

8

Notes:

The variable prices and values of properties within El Madroñal are dependent upon a number of options, apart from obvious factors such as size:

- Age and condition of the property (El Madroñal is a well-established community, and many homes were built 10 or 20 years ago). - Views - Privacy (normally, the larger the plot, the greater the privacy). - Location (plots located within the heart of the estate tend to be more valuable due to the absence of noise from traffic on the Ronda Road, which can adversely affect some of the homes closer to the entrance gates).

Price Data taken from the following sources: - Infocasa Real Estate Network (500 member agents) - Panorama – Marbella´s longest-established real estate agency - Diana Morales Properties – member of LPA (leading Property Agents of Spain), affiliate of Christie´s Great Estates

Correct as of 11th October 2010

EL MADROÑAL

- Gated, 5 star neighbourhood

- Exclusive setting, offering privacy and security

- Low-cost land purchase, offering considerable savings on market value of comparable plots

- Variety of exit options, offering scope for capital growth and/or income generation

Summary