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Quabit Invests €455M In Land & Prepares €40M Capital Increase

23 January 2017 – El Economista

Quabit is planning to invest €455 million buying up urban land between now and 2020 and is also preparing to carry out a new capital increase amounting to €40 million.

The real estate company chaired by Félix Abánades (pictured above) has published an update to its business plan, which reflects the new financing line that it signed with the fund Avenue Capital in December.

According to the company, it will focus its purchases on land located primarily in Madrid, the metropolitan area and the Corredor de Henares corridor, as well as in other strategic areas with high potential demand, such as Cataluña, the Community of Valencia, Andalucía (with a special emphasis on the Costa del Sol) and also in regional capitals such as Zaragoza, La Coruña and Santander.

In this sense, the real estate company explains that the agreement with Avenue Capital together with its bank financing offers the company potential financing of up to €130 million in 2017 to acquire land.

On the other hand, the development and marketing of the portfolio of own assets included in the Business Plan is expected to generate cash flow of €145 million, equivalent to more than 50% of the forecast operating cash flow during the period 2017-2021.

The real estate company also said that it plans to raise another €40 million in financing “soon” through a capital increase.

Dividend payment

The Group’s Business Plan forecasts the payment of dividends, both in cash and shares, amounting to €68 million in total. “In 2016, 1 new share was distributed for every 20 existing shares through a capital increase performed in April, which represented a milestone following the interim dividend in 2006”. Thus, the company explained that “with this and the profits forecast in the Business Plan, it has set itself two objectives. On the one hand, to achieve a return on investment of more than 5% in terms of dividends and on the other hand, to triple the book value of the company.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake