Lar, Aedas and Árima Invest More than €5 Million in the Stock Market to Curb the Covid Crisis

The Socimis Lar España and Árima, and the property developer Aedas Homes have boosted their share buyback programs following the outbreak of the health crisis.

It is just one of the measures implemented by the real estate companies as part of their anti-Covid plans. Several of the large listed companies in the sector have resorted to expanding their treasury stock to curb the collapse suffered by the stock markets worldwide, and, specifically, in Spain.

In the case of share purchases, the property developer Aedas Homes and the Socimis Lar España and Árima Real Estate have opted for this formula, with programs for the acquisition of their own securities that have totalled more than €5 million in the two months of the pandemic to date.

Habitat and Aedas Reopen their Sales Offices by Appointment Only

The property developers Habitat Inmobliaria and Aedas Homes have reopened their sales offices this week with protocols to ensure the safety of their employees and customers.

The house builders Habitat Inmobiliaria and Aedas Homes are resuming face-to-face meetings with their customers by appointment only after the reopening of their sales offices. For its part, Habitat Inmobiliaria, controlled by the fund Bain Capital, has reopened all 43 of the sales offices for its homes.

In terms of the protection measures adopted by the real estate company, examples include the installation of screens to separate commercial staff and customers, and the disinfection of sales offices. Likewise, the firm will facilitate the use of protective screens for its salesforces and will make masks and disinfectant gel available to customers.

Aedas Sells 13% More Homes during Q1

The property developer closed the first quarter with a total of 2,911 homes sold, giving it a sales coverage ratio of 81% over the deliveries planned for the financial year 2020.

The property developer Aedas Homes has closed the first quarter of 2020 with a total of 167 homes delivered and 340 new sales, representing an increase of 13% compared to the same period in 2019. With these operations, the company has now sold 4,158 units in its first three years of operation.

The company closed the first quarter with a total of 2,911 homes sold, giving it a sales coverage ratio of 81% over the deliveries expected for the year 2020, 42% for 2021 and 8% for 2022.

Amenabar Joins Forces with Ares to Invest €110M in Construction of 400 Build-to-Rent Homes

17 January 2020 – El Confidencial

Amenabar Promociones has signed the largest build-to-rent operation to date in Spain with the fund Ares. Together, they are going to invest more than €110 million in the construction of more than 400 rental homes in Valdebebas, Madrid.

The homes are going to be built on a plot that Amenabar acquired at the end of 2019 from Ferrovial for €56 million. The Basque, family-owned, property developer made its debut in Madrid’s residential market five years ago and handed over more than 1,000 new homes last year. In 2020, it plans to increase that figure to almost 1,600, a volume that it hopes to maintain for the next couple of years, which will see it outperform many of its listed competitors.

With this operation, Amenabar is following in the footsteps of companies such as Aedas, Metrovacesa, Quabit, Momentum and Urbas, which have all committed to projects in the build to rent sector in recent months.

Meanwhile, Ares has become one of the most active funds in this segment of the market. For example, Aedas is going to build 500 rental homes for Ares (€70 million); and Metrovacesa is going to construct another 121 homes for the fund (€29 million).

The appeal of the segment lies in the attractive returns that rental homes are currently generating. In Q2 2019, the average gross yield on rental homes across Spain amounted to 3.9%, according to official data from the Bank of Spain, which is much higher than the return on bonds and other prime real estate assets, such as offices and high street premises. Moreover, various cities and neighbourhoods offer even higher returns e.g. Madrid Capital (5.06%) and the Villaverde neighbourhood (8.43%).

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

Vía Célere, Aedas and Kronos Submit €120-Million Proposal to Acquire Land in Los Berrocales

4 January 2020 The developers Aedas, Vía Célere and Kronos have launched a joint bid to acquire two million square meters of land in Los Berrocales, Madrid. The land, the largest remaining plot of land in the capital’s south, has sufficient space to build up to 5,000 homes. The three companies submitted a proposal offering to pay 60 euros per square meter to a group of small property owners.

Market watchers expect protracted negotiations for the land, however. The regional authority has yet to agree to any kind of re-subdivision and urbanisation works. Even the most optimistic projections place the beginning of construction in 2022.

Las inmobiliarias Aedas, Vía Célere y Kronos han lanzado una oferta para adquirir dos millones de metros cuadrados de terreno en Los Berrocales, Madrid. La tierra, la mayor parcela de tierra restante en el sur de la capital, tiene espacio suficiente para construir hasta 5,000 casas. Las tres compañías presentaron una propuesta que ofrecía pagar 60 euros por metro cuadrado a un grupo de pequeños propietarios.

Sin embargo, los observadores del mercado esperan negociaciones prolongadas por las tierras. La autoridad regional aún tiene que aprobar cualquier tipo de obras de reparcelación y la urbanización. Incluso las proyecciones más optimistas sitúan el comienzo de la construcción en 2022.

Original Story: Idealista

Translation/Summary: Richard D. Turner


Aedas, Vía Célere and Kronos Join Together to Acquire La Fortuna, a 90-Hectare Plot of Land in Madrid

26 August 2019

Aedas, Kronos and Vía Célere joined together to acquire La Fortuna, a 900,000-m2 parcel of land to the southeast of Madrid. The property is located in the planned development of Los Berrocales and was sold by  Proinsa at a public auction for nearly 46 million euros.

The three developers bid jointly in the auction, which was held last month. The asset has more than 90 hectares of land and enough buildable land to develop about 2,500 flats, making it the most significant sale of land in Madrid in recent times.

Aedas is controlled by the American firm Castlelake; the US-based Värde Partners controls Vía Célere, and Kronos is Spain’s Kronos Homes’ developer.

Original Story: Cinco Días – Alfonso Simón Ruiz

Adaptation/Translation: Richard D. K. Turner

Sabadell’s Board Evaluates 3 Offers Amounting to c. €850M For its Property Developer

28 May 2019 – El Confidencial

On Monday, Banco Sabadell received three binding offers for its property developer, Sabadell Desarrollos Inmobiliarios, from the funds Cerberus, Oaktree and a third unknown candidate, amounting to between €800 million and €900 million.

The board of directors of the Catalan entity chaired by Josep Oliu now needs to decide whether to accept one of them and thereby pave the way for the creation of a new major player in the Spanish property developer sector to compete alongside the likes of Neinor, Metrovacesa, Vía Célere and Aedas.

Oaktree has been the favourite in the bidding for the last few months given its good relationship with Sabadell and with the property developer itself, with which it already operates at least one joint venture. It would represent the US investor’s first operation of its kind in Spain, where it currently has a small platform with just 20 employees.

Nevertheless, Cerberus has been gaining ground. Unlike Oaktree, the US giant already has a property development platform in Spain, Inmoglacier, to which it wants to supply new land (which SDin owns). Cerberus could also benefit from synergies between the two firms.

Meanwhile, the identity of the third candidate remains confidential, but possible contenders include Habitat (Bain Capital), Aedas and the Canadian fund CPPIB, which were all reported to be evaluating the purchase during the preliminary phase.

Initially, Sabadell was hoping to receive more than €1 billion for its property developer, but following uncertainty in the sector in recent months and the sale of several assets, it will have to accept a more modest price if a sale is to be agreed.

Original story: El Confidencial (by Jorge Zuloaga)

Translation/Summary: Carmel Drake

Spain’s Property Developers Glimpse the First Signs of a Moderation in Prices

29 May 2019 – Expansión

Yesterday, several of the largest property developers in Spain met for a Medcap roundtable event moderated by Deloitte to discuss the outlook for the residential market.

Specifically, representatives from Metrovacesa, Aedas, Quabit, Insur and Lar participated in the discussions, during which they observed that house prices in Spain are starting to moderate in some of the more mature markets, although they acknowledged that there are still many secondary cities where the new (growth) cycle is just beginning.

In this context, the representatives identified a number of focuses and challenges facing the sector, namely:

Licences: All of the property developers are pushing for great agility from the public administrations when it comes to the granting of construction permits.

Construction: The labour shortage in the construction sector is pushing up prices and leading to delays in project finishes.

Concentration: Property developers are larger and more professionalised now than before the crisis; they require critical mass to be resilient to real estate cycles.

Industrialisation: Prefabricated homes allow construction periods to be shortened and for greater control over the processes.

Access: Young people are finding it increasingly difficult to afford to buy a home.

Overall, the experts consider that the residential sector is still immersed in the early stages of the new cycle, but only time will tell whether they are right.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Aedas Homes Recorded Losses of €3.4M in Q1 2019

30 April 2019 – Eje Prime

Aedas Homes recorded losses of €3.4 million during Q1 2019, up by 47.8% compared to the same period last year (-€2.3 million). Nevertheless, the property developer’s results were in line with the business plan and revenues grew by 55% YoY during the same period to reach €14 million.

This year, the property developer controlled by the investment fund Castlelake plans to launch the construction of 2,580 homes and hand over 1,055 units. The firm has already sold 83% of the homes that it expects to hand over in 2019 and 55% of those forecast for delivery in 2020 (1,986).

Original story: Eje Prime 

Translation: Carmel Drake

Aedas Revolutionises the Property Development Sector by Building 500 Turnkey Homes for Ares

12 April 2019 – El Confidencial

Aedas Homes has decided to launch a new line of business by building complete housing developments for other companies. In this way, the listed property developer hopes to generate value from its production over-capacity; it anticipates recording revenues of around €70 million from the initiative.

In this vein, the company led by David Martínez has reached an agreement with the fund Ares to build 500 homes in its name in three different locations: Torrejón de Ardoz, Alcalá de Henares and El Cañaveral (all in Madrid).

This is the largest turnkey project in the sector since the outbreak of the real estate crisis, a decade ago and as such, represents a real milestone.

The three largest listed property developers in Spain, Neinor, Aedas and Metrovacesa, are all living by the famous mantra “reinvent yourself or die”. As such, they are expanding their operations as they seek to actually generate the high turnover figures that they promised when they made their stock market debuts.

With this latest announcement, Aedas is sending a clear message to its competitors. It has over-capacity in its production model, which means that it can handle turnkey projects on a large scale, as well as deliver the roadmap that it is already committed to.

With the additional 500 homes from this project, Aedas Homes could end the year with more than 3,000 units launched, compared with the 2,580 initially planned for the year.

Meanwhile, Ares Capital is immersed in its commitment to the Spanish real estate market, with a particular focus on the residential segment, with homes both for sale and for rent.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake