6 November 2015 – El País
The real estate investment, management and development company Kronos Investment Group expects to close the year with a portfolio of 1,200 homes and investment of €100 million, which will generate projected sales of between €400 million and €500 million. And it expects to double these figures, at least, by 2016.
The company, which marks its first anniversary in Spain this week, is here to stay. (…). In 2016, it intends to create its own investment fund and in fact, it is already in talks with some of the large funds operating in Spain regarding possible investments.
The group’s activity focuses on investment and management of residential plots of land for development. (…). It sources its assets from banks, individuals, bankruptcy proceedings and from Sareb.
To date, it has invested more than €80 million purchasing land for the development of around 570 homes, located in Puerta de Hierro (Madrid), Sotogrande (Cádiz), Playa Natura (Estepona), Playa San Juan and General Marva (Alicante) and Cala de Bou (Ibiza). The development in Madrid will have between 150 and 170 homes split into two phases, which will be sold for around €3,500/m2. Next week, Kronos will close its eighth operation – in Barcelona – investing another €20 million and adding another 250 homes to its portfolio. Next year, the group will continue focusing on Madrid, Barcelona, the Costa del Sol and Levante, but it will also look for land in Málaga, Sevilla, Valencia and the other provincial capitals with little stock and strong latent demand.
According to Manuel Holgado, a partner at the company, “We are interested in locations that make sense from the point of view of supply and demand, given that we want to develop and not speculate. This year, we have focused on Madrid, Barcelona and the coastal areas where the market is working well (Estepona, Sotogrande, Alicante), but next year we will expand our focus to include other towns with built-up demand and limited new housing supply”. The group’s residential portfolio is currently split 50:50 between first and second homes.
One of the aspects that distinguishes the group is that it does not necessarily purchase land that is ready to build on (suelo finalista), but rather it is capable of managing all types of land, if necessary. “We look at relatively small plots, as well as large sites that require urban planning and development. The price of a plot of land must be sufficiently attractive to allow us to sell the end product at a competitive price in the current market environment”, says Holgado.
The company, which has offices in London, Madrid and Luxembourg, does not have any projects up for sale yet. Next year, it will launch five and so will implement a network of national and local agents, as well as its own website for clients who want to reserve their homes online. (…).
Original story: El País (by Sandra López Letón)
Translation: Carmel Drake