Circular Capital is to develop a scheme comprising 39 homes in the Nou Moles neighbourhood of Valencia, with an investment of approximately €17 million. The project, the firm’s first in the city through Circular Homes, brings the number of ongoing developments to seven and raises the gross value of its portfolio to over €80 million.
The development will consist of two- and three-bedroom flats, with average floor areas exceeding 113 sqm, which will include a terrace, a parking space and a storage room. The penthouses will be laid out as duplexes, while the ground-floor flats will feature a private garden, in addition to a communal swimming pool, landscaped areas and a bicycle storage area.
The business plan forecasts revenue of €19.5 million and has already secured more than 75% of the committed capital. According to the management company’s projections, the investment will offer an internal rate of return of over 21% and a multiple on the capital contributed of more than 1.65 times.
The development will be built in Nou Moles, within the L’Olivereta district and on Valencia’s first urban ring road, with links to both the historic centre and the railway station and the airport. Circular Capital is targeting the development primarily at first-time buyers aged between 30 and 45, as well as local households looking to move from their current home.
According to the firm, the choice of location is driven by the scarcity of new-build properties in the immediate vicinity and the shift in demand from central areas towards surrounding neighbourhoods offering more affordable prices.
Emissions and waste reduction targets
The development will apply Circular Capital’s CIREP methodology, which incorporates more than 30 tools designed to measure the environmental impact of projects during their design, construction and operation.
The company has set itself the target of reducing the carbon embedded in materials by more than 20% and emissions associated with the building’s use by more than 70% compared to a conventional development. It also plans to design at least half of the building systems with dismantling and reuse in mind, to recycle more than 95% of the waste generated during construction, and to use more than 90% of materials classified as ‘healthy’ in accordance with the criteria of the European Taxonomy.
