land Market News: Spanish Real Estate Intelligence

Hermes Acquires 3,345 m2 in Puerto Venecia & Prepares its Third Fund
10 July 2018 - Eje Prime

Hermes Properties is adding a new asset to its portfolio. The investment vehicle, which specialises in commercial projects, has purchased 3,345 m2 of the Puerto Venecia shopping centre, owned by Intu, which it will lease to the hamburger chain Carl’s Jr and to the service station chain Gasexpress.

With this purchase, Hermes has completed a €14 million investment across three operations, in the El Puente shopping centre in Rojales (Alicante); in commercial plots in Isla Azul, in Madrid; and this latest deal in Puerto Venecia, in Zaragoza.

The manager’s purchase in Madrid, of plots spanning a surface area of 4,000 m2, which used to be owned by Sareb, involved the disbursement of €4 million. The operations have been undertaken through Hermes’ second investment vehicle, Hermes II. The manager, owned by Delta Asesores and the consultancy firm InmoKing Real Estate, is now preparing a new program of investments to generate the vehicle Hermes III.

Original story: Eje Prime Translation: Carmel Drake
Quabit Invests €15M Buying Land in Madrid & Málaga to Build 320 Homes

10 July 2018 - Eje Prime

Quabit is continuing to expand in Spain. The property developer is pushing ahead with its growth plan and, to this end, has completed the purchase of new plots of land in Estepona (Málaga) as well as in the Madrilenian towns of Azuqueca de Henares and San Agustín de Guadalix, for a total investment of €15.2 million. On these plots, the property developer will be able to build 320 new homes.

The operation follows another that the firm recently signed in Menorca, where it acquired a portfolio of residential land for €24.6 million. During the first half of the year, the company led and controlled by Félix Abánades (pictured above) invested €32 million in new land in total.

On these surface areas for residential use, which span a buildable area of 108,3000 m2, Quabit is going to build almost 900 homes, with a forecast turnover of €162 million.

Since the company launched its strategic plan 2017-2020, the real estate company has invested almost €200 million in the purchase of land for the construction of 4,850 homes. If we add those units to the ones still to be developed, the company has already fulfilled 75% of its development objective for 2022, which amounts to 7,900 homes.

Currently, Quabit has 45 developments up for sale with almost 3,300 homes being marketed, after ending 2017 with 1,700 units under construction located all over Spain. The property developer’s land bank exceeds 1.1 million m2 of buildable space, with capacity for the development of up to 8,800 homes.

Original story: Eje Prime 

Translation: Carmel Drake

Aedas Homes Exceeds its Annual Land Purchase Target by 182% in First 6 Months of 2018

8 July 2018 - Expansión

The property developer Aedas Homes has acquired land for the development of more than 1,900 homes during the first six months of 2018, which means that it has exceeded by 182% the target that the company set itself for the whole of the year, which forecast the purchase of raw materials for 1,042 units.

In a statement to Spain’s National Securities and Markets Commission (CNMV), Aedas Homes describes that it closed a total of 16 investments amounting to €96.6 million between January and June, buying up land located in the three provinces in which it already operates (Madrid, Sevilla and Valencia) and in two new provinces (Granada and Valladolid), whose management will depend on the Regional Teams in Andalucía and the Centre, respectively.

The purchases undertaken by Aedas Homes have involved an investment of around €51,000 per home in land, an amount that includes the costs of converting all of the portfolio into 'ready to build'. By area, the unit costs have amounted to €69,100 in Madrid, €55,900 in Valencia, €55,500 in Valladolid, €50,700 in Granada and €36,800 in Sevilla.

“These operations are undoubtedly the best example of the investment discipline of Aedas Homes, based on the search for and acquisition of opportunities that offer high returns”, said the Director of Strategy and Investment at the property developer, Sergio Gálvez, who described the current climate tor the acquisition of land as “magnificent”.

In this sense, he highlighted that the company has closed one operation every ten days and has almost doubled the target forecast for the whole year. “Our vision of the market reinforces the plan to continue with new investments as we identify new business opportunities that meet our strict investment criteria”, he added.

In terms of the new enclaves in which Aedas has acquired its first plots, Gálvez highlighted that they are markets “in clear recovery and real estate expansion”, and he added that in each city, the firm has focused on areas “with the greatest demand and with a shortage of supply in terms of new build properties and land”, thanks to the local knowledge of its Regional Teams and the advantage of having been monitoring these markets for many years.

Original story: Expansión

Translation: Carmel Drake