Compte de Urgel: acquiring, renovating and selling an apartment

At Compte de Urgel, DNPI Capital acquired an apartment, renovated it and sold the completed property. The project combines asset selection with construction management: the value created for the next buyer matters alongside the cost of delivering it.

Transaction figures

• Purchase: €410,000.
• Stated renovation cost: €76,230.
• Purchase plus renovation: €486,230.
• Sale: €720,000.
• Difference before other expenses: €233,770.

The €233,770 difference is not confirmed net investor profit. Taxes, financing, acquisition and sale expenses, fees and other potential costs have not been disclosed. The project duration is also unpublished, so these figures cannot establish an annual return.

Renovating for the intended buyer

The transformation budget must fit the particular property and expected buyer. It is important to consider which changes improve quality and appeal, what they cost, and whether demand supports the intended exit price.

Renovation and construction are carried out by BCNYARD, SLU, an independent construction contractor engaged under a separate works contract. Before work starts, scope, budget and approval of changes need to be agreed. The included costs, responsibility for additional works and comparison of forecasts with actual expenditure should be clear.

From project budget to investor outcome

A new transaction requires a complete budget and scenarios for deviations. Timing also affects capital requirements and holding costs. Profit distribution and fees should be considered separately: the sale price is not the investor’s income.

View the Compte de Urgel project and our residential property strategy. DNPI works exclusively in Barcelona and its suburbs.

Data supplied by DNPI Capital. This case describes a completed transaction; it does not guarantee similar results or constitute individual investment advice.