Aedas Reaches an Agreement with Castlelake to Buy Non-Finalist Plots

20 May 2019 – El Confidencial

Aedas Homes has reached an agreement with its main shareholder, the US fund Castlelake, to ensure its supply of long-term land, without having to make any major investments in the short-term.

Specifically, the property developer and the fund will create ad hoc companies for each non-finalist plot in which they decide to invest, whereby Aedas will take a 10% stake and will reserve the right to buy up to 25% of the homes built on each one of the sites.

Aedas’s team will be responsible for managing the vehicles, processing the urban planning formalities and obtaining the finalist land status. The company has already identified six plots in Madrid, Valencia and Sevilla, on which more than 9,200 homes could be built.

It will take between 4 and 5 years to transform those plots into finalist sites and the idea is that Aedas will build at least 2,500 of the homes permitted, with the remainder being sold for development to other property developers.

This strategy will ensure that Aedas has a supply of finalist land over the medium and long-term at affordable prices.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

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