26 February 2018 – Expansión
The Socimi Lar España values its assets in the Community of Valencia at €210.5 million, up by 34% compared to their combined purchase price. The value of the Vidanova project in Sagunto has appreciated by 77% in two years.
At the presentation of its annual accounts, the Socimi Lar España said that the land that it purchased less than a year ago from Bertolín, next to the Cheste circuit (in Valencia), is already worth more than twice the amount that it paid for it.
According to the Socimi, the logistics plot, measuring 112,813 m2, named Newlogis, which it acquired in May, had a market value of €5.2 million at the end of 2017. In other words, it had appreciated in value by 136% in just eight months.
With those percentages, it is hard not to remember the last real estate bubble of just a decade ago when expressions such as “pelotazo” were so typical in the property sector.
According to the detailed information about the project, the cost of the land has increased significantly because it also includes the urbanisation costs. In this way, the total cost of the land has increased to €16.5 million by including the amount of the urbanisation works that correspond to it and which are in fact being undertaken by a company belonging to the Bertolín family. The Socimi expects that the first warehouses may be ready by the end of 2019.
Lar España has also accumulated significant latent gains on the rest of its investments in Valencia, according to the market value attributed to them by reports from JLL and Cushman & Wakefield. The Socimi owns five assets in the region, specifically, three shopping centres and two industrial properties. At the end of 2017, Lar España valued them at a market price of €210.5 million, compared to the €156.3 million that it paid for them between 2014 and 2016.
The largest asset is the Portal de La Marina de Ondara shopping centre (Alicante), which generated €7.6 million in rental income last year, making it the Socimi’s third best-performing asset by revenues. According to the valuation, it is now worth around €120 million; the Socimi paid almost €90 million for it between 2014 and 2016.
Meanwhile, the Vistahermosa de Alicante shopping centre is now worth €50 million, when it was acquired in 2016 for €42.5 million.
Another asset that has multiplied in value in the Vidanova commercial development in Sagunto, which is worth €24.8 million, up by 77% compared to the purchase price of €14 million.
Finally, the Socimi’s logistics platform in Almussafes has seen its value increase from €8.4 million to €10.3 million in two years.
Original story: Expansión (by A. C. A.)
Translation: Carmel Drake