30 December 2016 – Expansión
Yesterday, the listed real estate company Quabit signed an agreement with Avenue Europe International Management, whereby the fund will provide a line of credit amounting to €60 million, which Quabit will use to increase its portfolio of residential projects.
Specifically, the funds obtained through this line of credit will be used to acquire buildable urban land for the development of 1,700 homes next year, in Madrid and surrounding areas.
The funds from Avenue will finance 70% of the land acquisitions, whilst the remaining 30% will be financed by own funds from Quabit. Moreover, the real estate company may increase the amount of the credit line to €85 million.
This agreement forms part of the business plan that the real estate company chaired by Félix Abánades set for the period 2015 to 2020, which includes returning to residential development, after years focusing on the sale of finished stock and on its financial restructuring.
To this end, during the first nine months of 2016, the listed real estate company has acquired plots of land in Boadilla del Monte (Madrid) and Guadalajara, and has launched five new developments, containing 304 homes in total. Under this plan, Quabit expects to hand over more than 3,000 homes, including assets from its own portfolio as well as those coming from new investments, with a forecast turnover of more than €950 million.
During the first nine months of 2016, Quabit recorded sales of €25.7 million and losses of €10 million, down by 23% compared to the same period a year earlier. Its EBITDA was negative (-€6.9 million), although it improved by 9.1% compared to the third quarter of 2015.
Original story: Expansión (by R. Ruiz)
Translation: Carmel Drake