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Aedas Completes €2.3M Capital Increase

17 July 2017 – Eje Prime

Aedas Homes is continuing to raise funds to finance its growth. The company, the heir of Vallehermoso, has carried out a €2.3 million capital increase, which it plans to use to continue to boost its growth and strengthen its position as a key player in the real estate development business in Spain.

According to the Commercial Registry, the company Aedas Homes has carried out a capital increase amounting to €2.3 million. This is the second injection that the company has received in recent months after it increased its capital by €31.5 million in April. In this way, the company’s subscribed capital now amounts to €33.7 million.

Aedas Homes, created by the fund Castlelake and advised by Merlin Properties, was created with the objective of constructing 12,000 homes on land that it has been acquiring since 2013, spanning around 1.35 million m2. In March, Aedas Homes, which competes directly with Neinor Homes, Aelca and Vía Célere, began marketing its first fourteen developments and the group plans to add another fifteen developments to its portfolio in the near future.

The company began life in 2013, where the country’s housing market bottomed out and almost all of its activity was suspended. The fund Castlelake is one of the players who decided to back this business in Spain and in order to carry out its plans, it started to create a portfolio of land in locations that, according to its criteria, would be the first to recover.

At the end of 2015, when the real estate recovery started to become a reality and after investing more than €1,000 million in Spain, the fund had accumulated a portfolio of land covering more than 1.3 million m2, equivalent to 12,000 homes, of which 75% corresponded to primary residences.

It was at this point that the leaders of the project started to think about the possible evolution of all of their assets. To figure it out, they invited the Socimi Merlin Properties to enter the fold, to advise the group on the best formula for operating its land portfolio.

At the company’s helm is David Martínez (pictured above), who has vast experience in the real estate sector. After holding positions of responsibility at groups such as Ferrovial and Bovis Lend Lease in the 1990s, Martínez led projects such as Valdebebas and served as a senior manager at Distrito Castellana Norte.

New hires

In parallel to its growth, Aedas Homes is continuing to beef up its management team. The company recently hired Enrique Gracia, former director of Merlin, as the new Head of Finance. Gracia joined Aedas Homes in May; he has more than fifteen years of experience in the real estate sector (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake