Airnest Capital Investment Proposal
11 private pool villas in Playa Blanca, Lanzarote
Investment Snapshot
€3.0M
Total Project Cost
Conservative estimate including contingency
25-34%
IRR
Based on base-case "stabalise then sell"
2.25x
Equity Multiple
Implied en-bloc value at 6.0% cap rate
60%
NOI Margin
Strong operational efficiency target
This proposal outlines a compelling opportunity to develop 11 contemporary villas with private pools in Playa Blanca, one of Lanzarote's most established resort destinations. The project targets premium short-stay demand with multiple exit strategies: en-bloc sale to hospitality investors, individual unit sales, or a 12–18 month stabilisation period to demonstrate performance before institutional sale.
Under base operating assumptions, the portfolio is expected to generate approximately €269,808 NOI per year. Applying a 6.0% cap rate implies an en-bloc valuation of €4.50m, representing substantial value creation against the €3.0m total project cost.
The Asset
Location
Calle Petunia No 1, Playa Blanca (Yaiza), Lanzarote
Site Area
3,435 m² with 11 parking spaces
Built Area
1,117.48 m² residential plus 517.52 m² terraces and 693.61 m² landscaped areas
Villa Typologies
- Type A: 6 units at 124.81 m² built
- Type B: 4 units at 70.07 m² built
- Type C: 1 unit at 88.34 m² built
Development Status
Land owned by project sponsors; building licence stated as granted (subject to due diligence verification)
Prime Leisure Market
Playa Blanca combines year-round demand, pristine beaches, marina amenities and strong short-stay rental appeal. The submarket benefits from an established resort infrastructure and a guest profile that values privacy, outdoor living and premium self-catering inventory—a perfect fit for private pool villas.
Investment Highlights
Prime Leisure Market
Year-round demand in established Playa Blanca resort with beaches, marina and strong rental appeal
Licensed Development
Building licence stated as granted by sponsors, materially reducing planning risk
Product-Market Fit
Contemporary villas with private pools designed for premium rentals and end-buyer sales
Efficient Capital Stack
Target 60% LTV senior debt with 40% equity from land contribution and Airnest-led co-investors
Multiple Exit Strategies
Sell en-bloc, by unit, or operate 12–18 months to evidence NOI for institutional buyers
Turnkey Execution
Airnest Capital structuring, capital raising, debt arrangement plus optional operations management
Financial Performance
Base Case Assumptions
- 11 units generating 3,212 annual sold nights
- Average Daily Rate: €140 across 3 villa types
- Occupancy: 80%
- NOI margin: 60%
- Exit cap rate: 6.0%
Annual NOI of €269,808 supports an implied en-bloc valuation of €4.50m.
Capital Structure
Sources & Uses
Equity composition combines sponsor contribution (land and existing project costs) with additional cash equity raised by Airnest Capital.
Exit Strategies & Returns
Multiple exit pathways provide flexibility to optimise timing and value realisation based on market conditions and investor preferences.
1
En-Bloc Sale
Sell completed asset to hospitality investor or chain, priced off NOI using cap rate—cleanest and fastest exit
2
Unit-by-Unit Sale
Retail sales to individual buyers—higher potential value but requires more time and marketing
3
Stabilise & Exit
Operate 12–18 months to evidence performance, then sell to institutional buyer at premium valuation
Illustrative Equity Returns
Contemporary Design Excellence
The proposed design language is contemporary and minimal, consistent with Lanzarote's local palette and premium short-stay guest expectations. Bright interiors, strong indoor-outdoor flow, generous glazing to private terraces, and durable finishes create an ideal holiday rental experience.
Next Steps
Airnest Capital invites qualified investors to participate in this compelling opportunity. We will lead SPV setup, governance, debt arrangement and equity raising, with Airnest Management available to operate the villas during stabilisation if required.
Key Risks
- Construction cost overruns mitigated by fixed-price tender and contingency
- Market variability addressed through flexible exit strategies
- Regulatory risk reduced via stated licence grant (subject to verification)
Governance
- Single-asset SPV with shareholder agreement
- Monthly reporting during construction and operations
- Independent due diligence prior to investor close
Important Notice: This document is confidential and for discussion purposes only. It does not constitute an offer to sell or solicitation to buy any security. Financial projections are illustrative and based on sponsor assumptions. Actual results will vary. Full investment decisions require comprehensive legal, technical, tax and financial due diligence.