4 April 2018 – Eje Prime
Quabit has sealed a deal to continue operating in the property development business. The company has signed a line of credit amounting to €50 million with the aim of financing the acquisition of developable plots of land focused on the development of residential real estate assets, according to a statement filed by the company with Spain’s National Securities and Exchange Commission (CNMV). The real estate company has signed the loan with specific funds advised by the companies Taconic Capital Advisors UK and Grupo Royal Metropolitan España.
Specifically, according to the agreement, the provisions of this line will finance 70% of land acquisitions and the corresponding taxes, whilst Quabit will finance the remaining 30%.
The funds must be drawn down during the first nine months of the contract, and the drawn down funds must be returned upon maturity of the line of credit, after four years, with the possibility of making early repayments and reusing the funds to finance new investments.
For each one of the projects financed, a separate company will be used in which Quabit will hold a 100% stake, albeit indirectly. These stakes will be the guarantee for the loans, leaving the land free, if necessary, for banks to finance its development.
The signing of this line of credit forms part of the new investments financing scheme established by Quabit in its business plan for 2017-2022. The company chaired by Félix Abánades recorded turnover of €535.7 million in 2017, although its sales fell by 83% due to a reduction in stock during 2016, and because its new developments are going to start to be handed over this year, according to the real estate company.
Original story: Eje Prime
Translation: Carmel Drake