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