With a history spanning more than four decades, the Navarran company ACR doubled its turnover last year through the sale of high-end housing at reduced prices. The key to ACR’s (business) model is the purchase of land, namely foreclosed plots from banks, Sareb or public administrations, at affordable prices. “We look for a lot of land and we design the appropriate product. House prices have a limit at the moment, which varies by area and development, and therefore, the price we pay for land also has a limit”, explains Francisco Santiago, CEO of ACR.
The Navarran company is currently promoting 700 homes across developments in Madrid, Barcelona, País Vasco and Navarra.
They include two projects known as “Nature”, which ACR is undertaking together with Allegra Hólding, a company founded by Mario Losantos, following the sale of Colonial. “We have a very strong and frank collaboration with our partner. We are enjoying a lot of success with our developments in Plaza Castilla and Puerta de Hierro (both in Madrid) and there will soon be a third “Nature” development”, says Francisco Santiago.
ACR generated turnover of €91 million in 2014, compared with €77 million in the previous year. “We expect to increase (turnover) by 40% this year but that will depend on the delivery rate of our (housing) developments”, he says. “The first homes that we will hand over will be 176 apartments in Bilbao, during the final quarter. We also want to launch other new developments in 2016, whereby taking advantage of the opportunities that exist in the market”, says the CEO.
In order to achieve this objective, ACR will have to face the wrath that exists between large funds and managing agents for central plots of land in Madrid, which has resulted in an increase in land prices in many cases. “When there is fierce competition for a plot of land, we do not participate”.
In addition to its (property) promotion business, ACR is also active in the areas of construction and refurbishment. “The construction business accounts for 65% of our global turnover, including our projects in France and Colombia, and refurbishments represent 15%, but that is a sector that is growing significantly”.
Original story: Expansión (by R. Ruiz)
Translation: Carmel Drake
Translation/Summary: Carmel Drake