Luxury Home Developer Caledonian Plans To Enter Hotel Segment

5 June 2017 – La Vanguardia

The luxury housing company Caledonian is planning to expand its activity into the hotel sector, with the construction of a vacation complex on the Costa del Sol, according to comments made to EFE by the President of the company, Enrique López Granados.

The complex will be located “between Algeciras and Marbella”, although López Granados chose not to specify the exact location because the project is still in the negotiation phase.

López Granados, who recently unveiled a luxury housing development in Pozuelo (Madrid), also confirmed that Caledonian has purchased the Javier Ferrero building in Madrid for €9 million.

The building will be refurbished and then the real estate company is expected to generate between €25 million and €30 million from the sale of the homes.

Caledonian is also interested in constructing social housing properties in Madrid, although the property developer has not found an appropriate location for that yet.

“The aim is to construct around 2,000 homes to be sold for around €2,000/m2”, explained López Granados.

The President of Caledonian said that the yield that the real estate company obtains from its activities is “small”, close to 15%, given that the homes that it sells “are expensive because it costs a lot to build them”.

The 21 homes that Caledonian has constructed in Pozuelo and that López Granados unveiled last week cost between €500,000, for the cheapest, and €1.5 million, for the most expensive.

“I also think that this is a great time for the luxury sector, given that people are starting to buy again”, said López Granados.

The Director also said that Caledonian would like to expand into other geographical areas, such as Barcelona. Nevertheless, he clarified that the real estate company has not yet found “any appropriate plots of land to be able to build on”.

“If we could find appropriate plots of land, we would not have any problem starting projects in other places”, he said.

Nevertheless, López Granados said that constructing in other areas “requires additional effort”, and for that reason, he prefers “places that he already knows such as the Costa del Sol and Madrid”.

Caledonian is a property developer and construction company that specialises in the luxury property sector. It has constructed projects in locations such as Somosaguas (Madrid), Aravaca (Madrid) and Ibiza.

Original story: La Vanguardia

Translation: Carmel Drake

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