21 September 2017 – Levante EMV
The property developer Aelca has arrived in Valencia with the launch of two developments containing 192 homes in Patraix and Nou Campanar. The development in Patraix is owned by the property developer itself, whilst the one in Nou Camapanar is owned by Sareb.
Aelca is one of four large Spanish property developers linked to a US investment fund (known in the sector as the “big four”) that has backed Valencia heavily in the face of the shortage of new-build homes and the rise in the price of land in Madrid and Barcelona. The other three large property developers are Neinor Homes (which is going to build 450 homes in Malilla), Vía Célere (which is working on a development in La Petxina) and Aedas Homes (which is going to build homes in Cuatre Carreres).
Aelca was founded in Madrid in 2012 and in the middle of 2016, the US fund Värde Partners acquired a stake in the firm. The investment fund headquartered in Minneapolis is one of the players that has most heavily backed the recovery of the sector in Spain, as demonstrated by the fact that it has also invested in Vía Célere. With the financial muscle that it enjoys from having Värde Partners as a shareholder, Aelca plans to continue buying land.
Aelca’s own development in Valencia is called Residencial Llum, a complex containing 120 homes with 2, 3 and 4 bedrooms, in a private urbanisation between Avenida Tres Cruces and Calle Campos Crespo in Patraix. The prices of the homes there start at €125,000 including a parking space and storeroom.
Aelca’s second project in Valencia is called Residencial Sonet, a building with 72 homes that is being promoted by Sareb and marketed by Solvia. The urbanisation has a communal outdoor swimming pool, the homes have between two and four bedrooms and the development is located on Avenida Pío Baroja. The homes there are on the market for prices starting at €190,000.
Aelca recorded turnover of €103 million in 2016 having sold more than 600 homes. The company expects its revenues to increase by 49% this year (to reach €154 million) and for it to sell around 1,000 homes. The property developer currently has more than 2,220 homes under construction across Spain.
In addition to the four large property developers linked to US investment funds, there is another player in the market, Metrovacesa. That entity owns land for the construction of 5,550 homes in the Community of Valencia after it received plots from Santander, Popular and BBVA.
Original story: Levante EMV (by Ramón Ferrando)
Translation: Carmel Drake