Why an investment project starts with the purchase price

An attractive property also needs sound project economics. Architecture and location matter, but the result depends on acquisition, the full cost of delivery and the sale. DNPI begins by examining these elements together.

Acquisition is the starting point

Depending on the transaction, the purchase price is supplemented by transaction expenses, preparation, design, works, holding costs, financing, selling costs and fees. Until these are defined, the difference between acquisition and an expected sale cannot be treated as investor profit.

Separating acquisition, transformation and exit helps identify where value is created and which assumptions have the strongest influence on the outcome.

Off-market does not automatically mean a good price

DNPI uses proprietary off-market property databases and contacts to seek opportunities beyond public listings. Access does not replace assessment of price, condition, documents and demand. Our analytical software supports asset comparisons, but analysis still depends on transaction-specific evidence.

Delivery and control

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.

We also consider how a delay in sale could affect the project. Execution and timing are part of the economics rather than separate issues.

Individual participation

Each investor’s objectives, timeframe and capital shape the suitable format. DNPI operates only in Barcelona and its suburbs. The 50/50 profit-sharing model, costs and contractual compensation funded from the company’s fee are documented for each project.

Explore our approach and DNPI projects. This article explains the company’s method and does not replace individual assessment of an asset.