Quabit Creates a Corporate Network to 'Attack' the Rental Market
24 April 2018 - Eje Prime
Quabit is looking to the future and is organising its business to respond to the new trends in the residential market. The company, chaired by Félix Abánades, has started to create a new corporate network under the activity of freehold properties, a business concept that is used for asset management with ownership rights. The constitution of these companies comes in response to “the evolution of the market and the importance of businesses such as the rental market”, according to explanations provided by Quabit to Eje Prime.
Specifically, the property developer has recently created four companies: Quabit Freehold Properties, Quabit Freehold Properties Levante, Quabit Freehold Properties Centro and Quabit Freehold Properties Sur, whereby covering a large proportion of the Spanish peninsula. All of the companies have their registered addresses at number 1 Calle Capitán Haya in Madrid, which is also home to Quabit's headquarters.
In this way, the company is getting its business ready to meet the needs of new generations, who see renting as a more feasible option. These types of companies may also be the seed of a future Quabit Socimi, although sources at the company say that this option has been “parked” for the time being (…).
Quabit, recent steps
Last year and the beginning of 2018 have been very positive for Quabit. The property developer bid farewell to 2017 with a net profit of €14.4 million, which represented an increase of 80% compared to the €8 million it earned in 2016.
Moreover, the company recorded turnover of €535.7 million in 2017, although its sales fell by 83% due to a reduction in stock during 2016 and because new developments will start to be handed over this year, according to the real estate company. The market value of Quabit’s assets (GAV) as at 31 December 2017 amounted to €399.3 million.
Moreover, the group’s plans involve continuing to fatten up its portfolio with the purchase of new land to continue growing. In April, the company signed a line of credit for up to €50 million with the aim of financing the acquisition of buildable land focused on the construction of residential real estate assets.
The real estate company signed that loan with several funds advised by Taconic Capital Advisors UK and Grupo Royal Metropolitan España. Specifically, according to the agreement, the line will be used to finance 70% of the amount corresponding to the acquisition of land and taxes, whilst the remaining 30% will be financed by Quabit.
The signing of that line of credit formed part of the new investment financing scheme set out by Quabit in its Business Plan for 2017-2022 (…).
Original story: Eje Prime (by C. Pareja)
Translation: Carmel Drake