23 March 2018
In 2018, the real estate company plans to launch between 3,500 and 4,000 units, while delivering 520.
Metrovacesa, a real estate developer controlled by Santander and BBVA, announced today that it recorded losses of 39 million euros in 2017 with revenues of 28 million euros and a gross margin of 25%, in line with its reporting during its re-listing on the stock exchange.
The company, which returned to the stock exchange on February 6, obtained a negative gross operating result (Ebitda) of 7 million euros in its launch phase.
However, Metrovacesa has highlighted the group’s “solid” financial position, with zero net debt and a long-term loan to value target of less than 25%, which will allow the implementation of its business plan.
The company has highlighted that it is “firmly” moving forward with its plans to meet target deliveries of between 4,500 and 5,000 homes by 2021.
In 2017, the sales of residential units experienced “solid” growth, especially in the second semester.
The company pre-sold 512 homes in the year as a whole, closing the period with an accumulated pre-sale book of 135 million euros (equivalent to 541 units). The number of deliveries made during 2017 reached 110.
As of December 31, 2017, the company had 48 active developments (2,141 residential units), of which 21 (955 residential units) are already under construction.
Regarding its service industry business, Metrovacesa obtained 2.6 million euros last year from the sale of land and has preliminary agreements for another 30 million euros.
The firm has also highlighted the sale of a turnkey project involving an office in Madrid located in Josefa Valcárcel for 30 million euros to Axiare Patrimonio.
By 2018, Metrovacesa expects the launch of between 3,500 and 4,000 units and the delivery of 520. Regarding the progress of sales, the developer’s projects have a high level of visibility for deliveries this year, with 70% already sold.
In addition, all units that have been targeted for delivery are in the construction phase.
In 2019, the company plans to deliver 700 units, 33% of which have already been sold and 72% are in the construction phase.
Metrovacesa practices active management of the land undergoing development, which has meant that, in the last quarter of 2017, the company managed to increase its ready-to-build land portfolio by 76%, in terms of gross asset value (GAV).
With regard to the service industry business, Metrovacesa aims to launch more than 36,000 square meters in the current year.
Original Story: La Información
Photo: Wikimedia Commons
Translation: Richard Turner