30 August 2017 – La Vanguardia
Neinor Homes has signed a financing agreement with JP Morgan for €150 million, funds that the company will use to accelerate its land purchases for the construction of homes, according to a statement issued yesterday by the listed real estate investment company (Socimi).
The loan is due to mature in two years and Neinor plans to repay it using cash generated by its ordinary business.
According to the same source, the new financing will allow the company to optimise its business plan because it can bring forward the land purchases initially forecast for 2018 to the second half of 2017, “whilst maintaining its conservative debt ratios”.
“With this operation, Neinor Homes is seeking to take advantage of the good times and great opportunities that currently exist in the Spanish residential market”, said the Socimi, which is currently holding advanced negotiations to close land purchases amounting to more than €100 million.
In its opinion, the new financing demonstrates the strength of the company and the confidence that the financial institutions have in its balance sheet and its execution capacity.
In the event that it uses up the entire financing line buying up land during the second half of the year, and then launches a significant proportion of those projects “successfully”, it may consider reviewing the targets set in its business plan for 2020.
In a statement published by the Socimi, Neinor Homes said that it continues to lead the residential development market in Spain, with the largest bank of high-quality buildable land, worth more than €1,300 million and spanning more than 1,250 million m2 across Madrid, Cataluña, Baleares, País Vasco, Andalucía and Valencia.
Original story: La Vanguardia
Translation: Carmel Drake