12 March 2018 – Expansión
Realia, the real estate firm controlled by Carlos Slim (pictured below), has acquired a plot of land in Alcalá de Henares (Madrid), with a buildable surface area of 44,755 m2, from the Ministry of Defence for €27.5 million. This is the first land acquisition that the company has undertaken since the Mexican magnate took control of the entity, and sees it join the wave of investments that companies in this segment are making in land in light of the reactivation of the sector, reports Europa Press.
In the case of Realia, the land purchase forms part of the reactivation of its construction and house sale activities, which it had suspended, firstly due to the crisis and, subsequently due to the process to restructure and clean-up the company. In this way, it is going to allocate this land to undertaking one of its first three housing developments. The other two, which are going to be built on the portfolio of land that the company already owns are located in Sabadell (Barcelona) and Palma de Mallorca.
Realia’s strategy to resume its property development activity involves analysing new build construction projects in “areas where demand is consistent and the supply is very low or new”, such as specific areas of Madrid and Barcelona and “certain other places with the same market characteristics”, according to a statement made by the firm in its annual report for 2017.
That is one of the company’s main objectives for 2018, together with the improvement in margins through the streamlining and optimisation of expenses, and the recovery of prices.
Original story: Expansión
Translation: Carmel Drake