Hectocorn recently completed a €1,895,000 ground-up development facility for a Spanish property developer building a luxury villa in Ibiza. While the location and project concept were strong, the developer required a lender able to work with a complex cross-border ownership structure, which significantly narrowed the funding pool.
The client needed financing for the full construction of a new-build high-end home. While they had already secured a suitable plot, the project required a lender comfortable not only with the international context but also with a layered corporate ownership structure that included multiple entities across different jurisdictions.
Despite the complexity, Hectocorn successfully secured a bespoke development finance facility covering 70% of total project costs, and with a loan-to-GDV of 42%. The loan was structured over a 34-month term to accommodate build time and the luxury villa marketing cycle — both of which tend to be longer than standard residential projects in Spain due to build specification and international buyer timelines.
The interest rate of 0.90% per calendar month was highly competitive, especially given the overseas ownership element and planning nuances of building in the Balearic Islands. Staged drawdowns were agreed in line with key construction milestones, allowing for efficient cash flow management and cost control.
This case reflects Hectocorn’s ability to unlock tailored financing for international development projects, even where ownership structures or offshore holding companies would usually be a barrier. Our lender relationships and experience in European luxury development allowed us to position the deal appropriately and move from introduction to drawdown without delays.
Key Deal Highlights
- Loan amount: €1,895,000
- Loan-to-Cost: 70%
- Loan-to-GDV: 42%
- Asset: Ground-up luxury villa in Ibiza
If you’re planning a new-build development in Ibiza or elsewhere in Spain and require funding tailored to offshore, cross-border, or luxury-led projects, speak to our team today.
Tailored Development Finance for Luxury Projects in Ibiza
Frequently Asked Questions
Yes, but only with select lenders. Many banks won’t support layered or cross-border structures. We work with private lenders who specialise in structuring around complex ownership — as in this Ibiza case.
For strong projects, 65–70% LTC is achievable. We secured 70% LTC here despite the complexity, which is at the upper end of market norms.
Yes. While lenders often prefer multi-unit schemes, we’ve secured bespoke facilities for standalone luxury residences where the GDV and end buyer market are clear.
Typically 18–36 months. We structured this over 34 months to match the build and sales cycle of high-end homes in Ibiza, which require longer lead times.
Rates vary depending on leverage and complexity. In this case, we secured 0.90% PCM, which is competitive given the offshore structure and prime location.