ASG Homes is Looking for Land in the North of Spain

24 October 2018 – Eje Prime

ASG Homes is raising its head and looking north in its growth plan for Spain. The property developer, a subsidiary of the German group ActivumSG, is analysing residential projects in cities such as Bilbao, San Sebastián, Santander and A Coruña. “We are opening ourselves up to other areas”, says Víctor Pérez Arias, CEO at ASG Homes speaking to Eje Prime. At the same time, ASG Homes is already thinking about launching its sixth fund next year, once it has fully invested the current one

The group’s fifth fund, which specialises in the residential segment in Spain and Germany, still has €200 million to invest, of the almost €500 million that it was created with. To date, the real estate manager has invested around €250 million through ASG Homes.

The objective of the company is to use up the funds during the first quarter of 2019. To this end, the property developer is accelerating its investments so that a dozen projects are ready to come out of the oven “in the very short term”.

Amongst the plans already underway, the firm is constructing and renovating buildings in Valencia, Sevilla, Alicante, Salamanca, Estepona (Málaga) and Alcalá de Henares. In total, a portfolio of seven projects, to which an eighth will soon be added in Marbella.

With more than half a million m2 of land located all over Spain, ASG Homes has the capacity to build up to 5,000 homes, of which more than 2,000 units are already being marketed. Nevertheless, the manager aspires to double the size of that portfolio to 10,000 homes and, in this sense, the property developer is looking to the north of the country, and to Valladolid.

One of the reasons for this open-mindedness is the “uncertainty in terms of the timings” that the fund is finding in several of the provincial capitals where it already has a presence, says Pérez Arias. “There are some cities where we have decided to not invest again because of the problems imposed by some of the public administrations”, complained the director.

The search for opportunities in the north forms part of phase 3 of the fund, as described by the company, which also involves scanning the first rings and outskirts of two of the large capitals where it already has a presence, Madrid and Sevilla. Barcelona does not form part of the roadmap for ASG Homes, which is only investing in large volume projects, for the time being. “We back developments with a minimum of 200 homes”, says Pérez Arias, who forecasts that the last key for the twenty or so developments that his firm is planning to build with its current vehicle will be handed over in 2022 (…).

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake

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