Kronos Homes Will Invest €1,300M In Spain Over 3 Years
10 March 2017 – El Economista
Kronos Homes wants to become one of the largest property developers in Spain and to this end, is going to invest around €1,300 million in the country over the next three years.
“We don’t want to be largest (property developer), but we do want to be the firm that offers the best quality and design”, said Majda Labied, Operations Director at Kronos.
To date, the firm has spent €700 million since it arrived in Spain two years ago, of which €200 million went on the purchase of land. As such, Kronos has managed to accumulate a portfolio with capacity for 3,000 new homes.
“Our aim is to reach €1,000 million in terms of total investment by the end of this year and then to double that figure over the next three years”, explained Manuel Holgado, Partner of the management company Kronos Investment Group, under which the property developer operates.
“From the start, we have focused on buying residential plots of land in Madrid, Barcelona, the Costa del Sol and along the Levante Coast, but now we are open to any location that makes sense from a real estate perspective”, continued the Director. Thus, its new markets include Valencia, Málaga, Sevilla, Córdoba and País Vasco.
For the time being, Kronos Homes has six developments in the sales phase in Madrid, Cataluña, Costa del Sol and Alicante, with 750 homes up for sale in total. Next year, it plans to complete two developments containing around 150 homes.
Kronos expects to finish 2017 with a committed investment of €1,000 million and more than 4,000 homes in its portfolio, which represents an estimated sales value of €1,250 million.
The property developer has financial backing from an international group of investors, primarily from Europe (the majority come from the UK, Switzerland, Finland and France) and the US. Moreover, it also has financing from the main financial institutions in Spain. (…).
In the face of the enormous interest that the sector is generating amongst international funds, the director says that Kronos Homes is not up for sale “nor do we intend to buy any portfolio or platform”. “We acquire land, both developable land and land under development”. Likewise, he assures that the group’s strategy does not involve listing the company on the stock market.
Commitment to quality and design
In order to differentiate its products from those of its competitors, the firm works with renowned architects such as Rafael de la Hoz and Joaquín Torres. In addition, it spends around six months developing the designs for its projects. (…).
The prices of Kronos’ homes range from €150,000 to €2 million. However, the average home costs around €300,000. (…).
Original story: El Economista (by Alba Brualla)
Translation: Carmel Drake