Neinor Homes Loses €6.1m up to September and Recomposes its Board with Talent from BDO

31 October 2017

The group also announced the departure of Dominique Cressot, proprietary director for Lone Star, from the board, and the appointment of Alberto Prieto, general director of BDO Real Estate, as the new independent director.

The real estate developer Neinor Homes ended the first nine months of the year with losses and a change in its board. The company reported losses of €6.1 million to the National Securities Market Commission (CNMV). In addition, the group has also announced the departure of Dominique Cressot, proprietary director for Lone Star, from the board, and the appointment of Alberto Prieto, general director of BDO Real Estate, as the new independent director.

However, although the group has not yet turned a profit, it achieved a positive gross operating result (EBITDA) of €0.5 million. The real estate investment company’s income stood at €169.4 million for the first nine months of the year. Neinor does not compare the results of this year with those of the same period of 2016 because it was first listed in March. The company highlighted that “the accounts of the first nine months are in line with the business plan presented on the occasion of its listing.”

The company currently has 71 planned developments, totalling about 5,500 homes, of which more than 2,000 are already under construction, according to Neinor, which also has pre-sales amounting to almost 700 million euros from last year (2,100 homes).

So far this year, the firm has purchased land valued at €275 million, which would have already covered 100% of the 2017 goals and 42% of those set for 2018, Velayos explained, who stressed that now that they have no “corporate distractions” and are entirely focused on their business. Neinor has accumulated enough land to build 12,000 homes, which is nearly the largest land bank in Spain, second only to Metrovacesa.

Of those 12,000 homes, 16% (1,900) are in Catalonia, which in value concentrates 22% of Neinor’s portfolio, whose strategy established that Madrid and Catalonia should contribute 50% of business with the remaining 50% spread over the rest of Spain.

Regarding the situation of the company in Catalonia, Velayos has ensured that they are on the lookout in case there are good opportunities to purchase land in the area, where some operators may want to reduce their exposure, and advised that the company could close an operation before the end of the year. Of the 1,900 homes to be built in Catalonia, Neinor already has 1,500 in production and, of these, 1,200 are pre-sold.

However, given the possibility that the political instability in Catalonia may continue, Neinor is considering entering new markets, among which Velayos has highlighted Lisbon (Portugal), where they are analysing whether there is available land with attractive margins.

Original Story: EjePrime

Translation: Richard Turner

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