2/10/2014 – Expansion
The owner of half of the Miami skyscrapers. One of the Times‘s 25 most influencial Hispanics. The number 193 of America’s richest people by Forbes. Possessing a $3.1 billion (€2.46 billion) worth of real estate. Jorge Perez, the president of Related Group, announced some time ago that he wanted to invest €500 million in the Spanish real estate. And so he did.
Presently, Mr. Perez is at the brink of closing his first acquisitions in Spain, amounting to €120 million in total.
With belief that the country’s market has got a huge potential and the moment to invest is perfect, the businessman created Related Spain. The arm is led by one of his sons, Nicolas. ‘We are setting our focus on rental buildings in big cities like Madrid and Barcelona. Also, we will target land, both in large metropolises and residential tourism areas, seeking zones where the product is diminishing’.
Perez held talks with Spanish banks and Sareb but he has not taken any decisive steps yet. ‘Most of the investments we are carrying out are agreed on with property owners directly. When it comes to the real estate investment arms of entites, we sincerely think they must still cut in asking prices’, he explained.
The investor who constructed, developed and managed over 100.000 residences, properties and condominia in the U.S.A., admits that over the last months in Spain the competition has grown pretty fierce. ‘Above all, around rental assets in Madrid and Barcelona. Return from this product brings similar rate as in the United States and other countries’, Mr. Perez adds.
Spanish home prices went up 0.8% year-on-year in the second quarter of 2014, marking the first rebound since the Q1 2008. The chairman of Related Group is conscious that opportunities may fade out in mid-term. ‘I think there will be further value loss, especially in case of land, but it is also clear than in the upcoming months will see bargains thinning out. However, I believe that there is a huge volume of finished housing stock and hectares of land awaiting their sales’.
The magnate does not seem disturbed by the uncertainty of the Catalonian region and neither he rules out seeking opportunities in Italy and Portugal.
Original article: Expansión (by D. Badía)
Translation: AURA REE