I've been having a look at the website on the train and my conclusions are that they are a wholesaler and not an agent of Fadesa, not in the traditional sense. It looks to me like they've bought pre-release "options" from Fadesa in bulk (remind you of anything Shak?
) and are now selling on their reservations to eager punters in Ireland...
The totals at the bottom of the Pricing page are the giveaway. Why else would you total up the square meterage and prices. It's a cut & paste from their business case spreadhseets...
Mind you, nice profit if you have the balls to do it. By my calculations they'll make at least £3.2m NET profit if they can sell all of them. If they can do this sooner rather than later (i.e. before the next payment to Fadesa is due), their only outlay would have been the deposits (approximately £1.3m - 20% of the £6.5m total worth of their allocations) and they probably got this capital on an interest only bank loan (repayments would be about £7,000 a month give or take a grand!). So in reality their only outlay is in interest payments, legal fees and marketing... Profit will actually be even better than this as I expect they got a suitable discount for buying bulk, at least the 3% commission normally paid to Agents I expect...
I checked with my agent and they claim that the plans in the brochure are pre replanning, so don't read too much into the plans for AP4...
I also called Fadesa about the pricing before I realised it wasn't anything to do with Fadesa... They said that they don't yet know what the price for the next releases will be, except that it will be somewhere between 5-20% higher than our pre-release prices. When pressed he admitted that it would depend on how many people that had pre-reserved actually went ahead and purchased and what the resultant demand for the next release was. Which is fair enough...
Interestingly, if this lot are selling pre-releases at a 5% premium, I wonder what would happen if Fadesa's next releases were at, say a 10% premium. I suspect they'd put thier prices up slightly, but just enough so that they still undercut Fadesa's prices...
One risk is that they can't sell their allocation quickly enough to avoid paying too many interest payments on the loan and flood the market with cut-price apartments, stalling the expected growth, at least temporarily.. If Fadesa had any sense they'd have put minimum price clauses in their bulk order T&Cs - I'd have gone for some kind of tracker where the wholesaler is limited to selling at RRP plus rather than cost plus...