Barcelona Student Housing

Welcome to HFB Benchmark, Inc. - Student Dedicated Housing

 

The U.K.'s recent "Brexit" from the E.U. has caused market shifts and uncertainty across the globe and many top economists such as Alan Greenspan believe this  "is just the tip of the iceberg".  There are still underlying economic problems in both the E.U. and the U.S. which may take several years to play out.  Deutsche Bank has now predicted there is a 60% chance the U.S. economy is headed toward a recession which could be disastrous for global markets which are already fragile in the wake of the "Brexit".

 

On the other hand, student housing has provided a non-correlated, alternative investment which has been a top asset class producer, regardless of economic conditions.  This provides investors stability during uncertain times.  Regardless of what happens in the market, good or bad, student registrations continue to grow and the demand for student housing continues to rise.


Below you will find a comprehensive overview with a brief market introduction, business synopsis and membership investment highlights.  You may also find the following information, along with many additional due diligence materials and third-party reports under our HFBB Resources page.

HFB Benchmark, Inc. offers a non-correlated, alternative investment, in an industry that has proven to show consistent returns and profitability through market shifts and economic downturns.  It provides a rare opportunity for both long term capital growth and short term income for improved liquidity.

 

Read more - HFB Barcelona Student Property Insight 2016/17

The Benefit:  Hassle Free Income + Steady Capital Growth.  As opposed to purchasing a single property, by investing in HFB Benchmark, investors can profit from the growth and revenue of several properties.  This means with a single modest investment, members receive recurring annual returns from all future acquisitions.  Projected annual after-tax returns of 34.4% (5-year average).

The Market:  As the capital of Catalonia, Barcelona is the largest economic region in Spain, boasting both a large student population (4th largest in the EU) plus a very attractive residential property market (#1 place to buy property – Telegraph.co.uk), which provides a rare opportunity for investors to go for both capital growth plus cash-flow positive property.  Although well established in the U.K., the student housing market in Barcelona is a relatively new, niche-oriented real estate asset class with tremendous demand-driven growth opportunities.  With such a large, fragmented market, there lies an opportunity to become a market leader.

The Method:  HFB Benchmark, Inc. is the parent holding corporation for all assets and future acquisitions.  The Company will acquire severely discounted (30-70% below market value) and highly undervalued properties in Barcelona, Spain - fully refurbish the assets into modern, high-standard apartments – and generate a highly profitable revenue stream by creating an Internet brand to rent the apartments to qualified university students.  The Company will purchase property 'clusters' of 8-12 apartments per property, with the target of providing 1,000 student rooms over a 3 year period.  Members will benefit through a healthy 35% payout of distributable net profits, paid on an annual basis.

HFB Benchmark, Inc. - "Happy Flats Barcelona" Synopsis;

The Problem:  Growing Supply/Demand Imbalance in Spanish Student Housing - Over the last three years there has been a record an 80% drop in Spanish student housing development completions, while over the same period new student registrations have increased by almost 20%.  Student housing stock is due to increase by just 1.3% placing more pressure on supply.  With a student population of well over 250,000 registered students and only 20,000 student built rooms available, there is a tremendous demand for student accommodation.

The Solution:  Provide high quality student accommodation at comparable market prices.  HFB Benchmark, Inc. identifies a window of opportunity for developers and investors.  HFB Benchmark, Inc. - “Happy Flats Barcelona” is strategically structured to take advantage of this market opportunity by acquiring deeply discounted and debilitated properties and refurbishing them into modern flats to provide high-standard student housing to select qualified university students in Barcelona, Spain.

The Company:  HFB Benchmark, Inc. (Parent Company) - HappyFlatsBarcelona.com (Brand)


The Opportunity;

   1. Capitalise on the tremendous student population and student housing supply/demand imbalance in Barcelona, Spain, which is a desirable location throughout the entire year, with steady rental income regardless of economic conditions.  Barcelona is a Top-5 international student destination with new student registrations expected to increase significantly with a new Government initiative to offer 1 of 3 courses in English by the year 2020.

   2. Profit from the current property market in Barcelona by taking advantage of significantly under-priced debilitated properties and refurbishing the assets into sustainable revenue producing units.  Barcelona is projected to be one of the top five growth cities in the world through 2024.  Barcelona is a capital city and true cosmopolitan Mecca located on the Mediterranean sea, ensuring investors it will always be an attractive market for both residential and commercial property.

 

Business Model: HFB Benchmark Business Model Canvas

Why choose Happy Flats Barcelona?

"About 15% to 20% of an investor's portfolio should be invested in assets that are non-correlated, regardless of stock market conditions." - Warren Buffett

HFB Highlights;

  • 100% transparency, receive complete progress reports
  • Fully reporting, annual audit by PricewaterhouseCoopers
  • Finance reports submitted to Government for tax benefits
  • High growth potential through leveraged project financing
  • Healthy 35% distribution of profits, recurring annual returns
  • High occupancy rates, even during weak economic cycles

 

*Spanish Law requires that at least 80% of a REITs total assets must be invested in real estate with 80% distributable net income paid to the shareholders.  Because the property is located in Spain (E.U.), it will be fully reporting.  We expect to gradually raise the dividend in order to obtain full tax benefit status.


Additional Benefits;

Incremental Investment - Members start with a small earnest position and receive guaranteed best price protection for up to 50,000 shares.  Taking a step-by-step approach allows members to enhance positions at their own individual pace and comfort level with no obligation.  This is not possible with traditional student housing which typically requires a minimum investment of €100,000 or more.

Healthy Profit Share - A good share of the profits are paid to investors through a healthy dividend payment policy.  Investors are expected to see a return via cash dividend after the first year of operations with significantly higher returns in years two and three. 5-Year average expected ROI of 34.4% pre-tax returns. The Company structure sets a healthy 35% dividend payout to the investors leaving room for growth.

Solid Market Hedge - Since 2011, student accommodation has outperformed all other traditional property assets.  It is the strongest growing investment property market and one of the most resilient investment sectors, with stable or increasing rental incomes and property values, regardless of economic conditions.  This provides investors with a solid back up plan to protect their current portfolio holdings.

Most frequently asked question - It’s a good idea, but how do I know the company will do the right thing?

Checks and Balances;

  • World Class Stewardship - Management with strict fiduciary duty experience, +30 years auditor for PricewaterhouseCoopers, the most trusted financial services firm in the world
  • Company’s monetary incentive - "The whole is greater than the sum of its parts."  Management ownership stake and minority dividend share provides incentive to do well
  • Management has “skin in the game” (with minority profit share only) which means they only make money if the company and investors make money
  • Fully Reporting Company - Internal audit by Directors, external audit by PricewaterhouseCoopers, submitted to Spanish Government for E.U. Tax Treaty relief and to obtain SOCIMI (Spanish REIT) "Zero Tax" status
  • Financier's due diligence on 20M € financing - Just like the mortgage on your home, funds are provided with strict conditions and go directly to the property Seller/Developer so funds are always protected with careful oversight from the next level fund provider
  • Government regulations - Spain and the U.K. (and OECD, E.U. countries) have reporting requirements which are being strictly enforced as per the 2013 Double Taxation Convention


*Visit our HFBB Resources page for further information.

 

 

IMPORTANT: This site is for general information purposes only. It does not provide financial product advice nor is it an offer of securities. Investments are not suitable for everyone. Investors should meet the requirements under one of the following categories; certified high net worth investors, sophisticated investors, self-certified sophisticated investors, accredited investor or special exempt status. If you require personal advice on the suitability or other aspect of this investment, consult a qualified, licensed adviser, who will conduct an analysis based on your circumstances. Applications may not be approved to non-qualified investors.

 

 

Student Property Market Introduction

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