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Quabit Buys Land In Málaga For €23.7M To Build 674 Homes

6 September 2017 – El Economista

Quabit is pushing ahead with its plans to purchase land by signing of a major operation in Málaga, where it has acquired several plots of land for €23.7 million, with the capacity to build 674 homes.

30% of the operation will be paid for using shares through a non-monetary capital increase and the remaining 70% will be financed through support from funds advised by the investment firm Avenue Capital Group.

The US company granted Quabit a financing line of up to €60 million for the acquisition of buildable land, which represented a major boost for the property developer, one of the few entities that managed to survive the severe crisis that hit the sector.

Altogether, the new plots have a buildable surface area of 79,000 m2, which will allow Quabit to construct 674 homes (147 detached family homes, 91 terraced family homes and 436 homes in “city garden” type blocks), according to a statement issued by the real estate company chaired by Félix Abánades.

Quabit’s new plots of residential land, which also include a retail plot, account for the majority of the Las Lomas del Flamenco sector, where urbanisation work has already started.

The product that the firm will construct in this area will focus mainly on second homes, aimed at foreigners for the most part, the star segment of the growth in the real estate sector in the province of Málaga, according to the most recent statistics published.

Las Lomas del Flamenco is located in the Malagan municipality of Mijas, 30 km away from Málaga capital, with views over the Mediterranean Sea and the Bay of Málaga towards Marbella and very close to Mijas Golf, one of the most popular and prestigious golf complexes on the Costa del Sol.

This operation follows a wave of purchases already carried out by the company during the first half of this year. In this way, between January and June, Quabit acquired residential land worth €39.1 million, with a buildable surface area of 119,518 m2 to construct 1,097 homes.

2017 is proving to be a key year in the expansion process of the company, which plans to construct 4,000 homes in total between now and 2021, to fulfill its business plan. For the time being, the evolution of the company’s sales rate is supporting the execution of its plan, given that at the end of June, it was selling between 40 and 60 homes per month, which represents a pre-sales figure that is more than 20% higher than the total commercial portfolio.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake