Case report · Mallorca

Practical case Mallorca: Exclusive villa in Port d'Andratx – Preserving the asset structure instead of using all capital

After the company sale, the entrepreneur had broadly spread assets from securities, shareholdings and liquid funds. Added to this were ongoing returns from investments and several rented properties in Germany.

In short

What was this case about?

After the company sale, the entrepreneur had broadly spread assets from securities, shareholdings and liquid funds. Added to this were ongoing returns from investments and several rented properties in Germany.

Why do wealthy buyers finance a purchase at all?

Not infrequently, financing serves to preserve existing investments and liquidity reserves rather than to sell large assets at short notice.

Is modernisation sensible for high-quality properties too?

Yes. Exclusive villas too are frequently adapted to personal wishes – for example through energy optimisation, smart-home technology or individual outdoor areas.

Who arranged this?

Perini Finance & Property — German-speaking, operating under the §34i GewO licence held by Olga Nikushkina, Portugal through a locally licensed intermediary; 15 to 20 banks approached per case. First call free; on completion 1 % of the loan amount.

Key figures

€3,450,000 villa, €2,070,000 loan, €2,008,500 equity

  • Purchase price: 3.450.000 €
  • Financing required: 2.070.000 €
  • Equity: 2.008.500 €

Anonymised case figure · not a binding statement for other projects · §34i GewO

Typical, anonymised case. Names, places and individual financing figures have been adjusted to protect privacy. The process reflects a typical advisory situation for non-resident financing in Spanien.

Property for sale in Port d'Andratx: an exceptional home with a view of the Mediterranean

After selling his mid-sized company, an entrepreneur from North Rhine-Westphalia fulfilled a long-held dream together with his wife. They were not looking for a holiday property but for a high-quality centre of life on Mallorca. The decision fell on a modern villa above the natural harbour of Port d'Andratx – with generous terraces, an infinity pool and an unobstructable sea view.

Although sufficient assets were available, the purchase was not to be paid for entirely from own funds.

After the company sale, the asset structure should stay as it is

After the company sale, the entrepreneur had broadly spread assets from securities, shareholdings and liquid funds. Added to this were ongoing returns from investments and several rented properties in Germany.

The aim was to preserve the existing asset structure as unchanged as possible and yet build solid financing for the acquisition.

€4,078,500 in total, €180,000 for works and fittings

  • Purchase price: 3.450.000 €
  • Additional costs: 448.500 €
  • Renovation and individual features: 180.000 €
  • Total investment: 4.078.500 €
  • Equity: 2.008.500 €
  • Financing required: 2.070.000 €

The financing share corresponded to around 60 % of the purchase price.

Paying cash would have meant reshuffling the investments

At first glance the villa could have been paid for entirely from own funds. However, this would have required extensive reshuffling of the assets and unnecessarily reduced long-term investments.

In addition, the property was to be adapted to personal wishes immediately after handover. Planned were a new outdoor kitchen, a photovoltaic system with battery storage, an intelligent building control system and the redesign of individual outdoor areas.

These investments were to be fully taken into account already before the purchase.

Not whether to finance, but which asset strategy fits

The focus was not on whether financing was necessary but on which asset strategy was more sensible over the long term.

After a detailed review of the existing assets, it emerged that a balanced use of equity would preserve considerable financial flexibility. At the same time, enough liquidity remained available to be able to realise further investments independently of the purchase.

The planned modernisation and equipment measures were fully included in the overall calculation.

60% financed, the holdings stay invested

The financing was built at around 60 % of the purchase price.

The additional costs and a considerable part of the purchase price were borne from own funds. All planned modernisation and equipment measures too were financially planned in from the start, so no additional financing decisions were required after the transfer of ownership.

The remaining assets continued to be invested in a broadly diversified way.

Ready to move into within months, no investment sold off

The villa could be taken over without time pressure and adapted to personal ideas immediately. Just a few months later, the property was fully modernised and ready to move into.

At the same time, the existing asset structure remained largely intact. The buyers had to sell neither shareholdings nor liquidate long-term investments.

Financing is about deploying capital, not replacing liquidity

Even with high assets, property financing is not necessarily a sign of a lack of liquidity. Often it is rather about using capital sensibly, preserving assets and keeping financial flexibility for future decisions.

FAQ

Frequently asked

Why do wealthy buyers finance a purchase at all?
Not infrequently, financing serves to preserve existing investments and liquidity reserves rather than to sell large assets at short notice.
Is modernisation sensible for high-quality properties too?
Yes. Exclusive villas too are frequently adapted to personal wishes – for example through energy optimisation, smart-home technology or individual outdoor areas.
Does more equity have to be used for a luxury property?
That depends on the personal asset structure and the individual financing strategy. A balanced overall solution is decisive.

Port d'Andratx villa: financing preserves the asset structure

Acquiring a villa in Port d'Andratx shows that property financing means far more than the mere raising of capital. In the upper market segment in particular, the long-term preservation of a well-considered asset structure is often central. Financing can be a deliberately chosen instrument here to secure liquidity, make investments plannable and realise the dream of life on Mallorca in an economically sensible way.

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Anonymised individual case, not a binding statement for other projects · Brokerage under the §34i GewO licence held by Olga Nikushkina (D-W-132-ZUCB-95); Siegfried Perini registered as directly involved person (§11a GewO) · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank

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