La Matanza, Tenerife — Residential Development Investment Opportunity

Author / Source: PARTNER GROUP NETWORK

The accompanying video presentation by PARTNER GROUP NETWORK introduces a real-estate investment and residential development project in La Matanza de Acentejo, Tenerife, Spain.

The project combines an existing villa, development land and an operating vineyard, with the objective of creating a residential development of up to 30 residences.

Video source: Investment project presentation by PARTNER GROUP NETWORK.

Project Snapshot

According to the video presentation, the project includes:

  • Acquisition price: approximately €1.75 million
  • Total land area: approximately 13,409 m²
  • Buildable area: approximately 4,290 m²
  • Potential development of up to 30 residential units
  • Existing vineyard of approximately 8,000 m²
  • Existing villa of approximately 290 m²
  • Villa reconstruction completed in 2024

The property is located in La Matanza de Acentejo, on the northern side of Tenerife.

Location

One of the strengths highlighted in the presentation is the property’s location close to the historic center and Calle Real.

The area combines traditional Tenerife architecture, residential development and agricultural land, including vineyards.

This positioning may provide an opportunity to combine residential development with the distinctive character of the surrounding area.

Existing Villa

The project already includes a renovated villa of approximately 290 m².

According to the presentation, the reconstruction was completed in 2024 and includes:

  • marble countertops;
  • premium kitchen;
  • natural-stone kitchen island;
  • designer sanitary equipment;
  • security system and 24/7 protection;
  • views toward the surrounding landscape and vineyards.

The villa represents an existing completed asset within the overall development project.

Vineyard

Approximately 8,000 m² of operating vineyard forms part of the property.

The presentation notes that the vineyard may provide additional possibilities connected with landscape preservation, agricultural activity and the overall positioning of the residential project.

Development Concept

The proposed concept envisages the development of up to 30 residences across two plots.

The project can be summarized as:

Land Acquisition → Development → Residential Construction → Sale of Completed Units

The strategy is based on acquiring the asset, completing the necessary planning and permitting procedures, constructing the residences and subsequently selling the completed properties.

Three Steps to the Transaction

The presentation identifies three principal stages:

1. Access to the Asset
Direct access to the property and project opportunity.

2. Due Diligence
Verification of the legal, technical, financial and planning aspects of the project.

3. JV Structure
Development of an appropriate Joint Venture structure between the participating parties.

This structure is particularly important for international real-estate projects where ownership, permitting, taxation and financing require careful professional review.

Financial Model

The presentation provides three illustrative profitability scenarios:

ScenarioExpected Sale PriceGross RevenueNet Profit3-Year IRR
Conservative€2,800/m²€12.012M€1.725M24–29%
Base€3,000/m²€12.870M€2.540M32–38%
Optimistic€3,500/m²€15.015M€4.578M42–48%+

The presentation identifies approximately €10.7 million as aggregate project CAPEX and approximately €2.54 million net profit under the base scenario.

These figures are projections contained in the video presentation and are not guaranteed investment returns.

Risk Factors

The presentation also identifies several important risks.

Permitting Risk
Obtaining and coordinating local planning and construction approvals.

Tax Risk
Proper structuring of the transaction and professional tax advice in Spain.

Market Risk
Potential changes in residential property prices and buyer demand.

Construction Risk
Construction cost overruns, scheduling and contractor performance.

The final investment result will depend on actual market conditions, project execution and the assumptions used in the financial model.

Why We Mention It in Our Blog

For Marinex-Agent, projects of this type are useful examples of how an international investment opportunity can be structured and presented.

A professionally prepared investment project should normally include:

  • clear identification of the asset;
  • location and market positioning;
  • legal and technical Due Diligence;
  • development concept;
  • CAPEX requirements;
  • revenue assumptions;
  • profitability scenarios;
  • identified risks;
  • proposed investment or JV structure.

This Tenerife project is therefore interesting not only as a potential real-estate opportunity, but also as an example of investment-project packaging and presentation.

Important Note

This article is based on information provided in the accompanying video presentation by PARTNER GROUP NETWORK.

The information is provided for general informational purposes only and does not constitute financial, investment, legal or tax advice, nor a recommendation or solicitation to invest.

All project information, ownership rights, permits, construction estimates, sales assumptions and financial projections should be independently verified through professional Due Diligence before any transaction.

Video Presentation

Original video presentation by PARTNER GROUP NETWORK .