7 April 2017 – Expansión
Solvia is establishing a name for itself as a profitable division for Banco Sabadell. The real estate arm is no longer just an instrument for evacuating assets awarded to the entity during the crisis, but rather it has become a profit-generating subsidiary and one that generates additional business for the bank’s branch network.
Moreover, the group is establishing itself as one of the main real estate companies in Spain covering the full cycle, given that it not only brokers the sale and purchase of properties, it also operates as one of the largest developers of new build properties, with a current stock under construction of 2,800 homes.
According to company sources, Solvia closed 2016 with a profit before tax (PBT) of €57.8 million, which represents a 2.4-fold increase on its earnings the previous year (€24 million).
The turnover of the company led by Javier García del Río for services rendered in 2016 grew by 31% to €157.5 million. This increase was even higher than the growth in the volume of brokered sales, which amounted to €1,995 million, up by 20.4%.
This rise was driven by an increase in marketing activities and the fact that 2016 was the first year in which the portfolios managed on behalf of Sareb were reflected in Solvia’s results their entirety. The bad bank is Solvia’s main client, alongside Banco Sabadell, although the company also works with several funds and family offices.
Moreover, last year, it diversified its activity by starting to sell homes to individuals through the launch of a chain of real estate offices on the high street. Solvia already has fifteen agencies – four of which are franchised – in Alicante, Sevilla, Torrevieja, Marbella, Murcia, San Pedro de Pinatar, El Campello, Fuengirola, Valencia, L’Hospitalet, Badalona, Oviedo, Getafe, Leganés and Castellón. Its objective is to extend the network right across Spain over the next few years.
In total – excluding rental homes – Solvia sold 20,321 properties in 2016, up by 25.8%. It is worth noting that 29% of the sales corresponded to assets other than finished homes, compared to 9% in 2015. Since 2011, Solvia has brokered the sale of 91,000 properties in Spain.
The company now manages 148,000 units, with a value of more than €31,000 million. Of that figure, €4,300 million relates to financial assets under management and €1,200 million relates to land under development. The assets it manages on behalf of Sareb came from Banco Ceiss and Bankia.
The 2,800 new build homes that Solvia is now constructing on land owned by Banco Sabadell and Sareb are located in 79 developments across Spain – in Madrid, Barcelona, Valencia, Córdoba, Sevilla, Gijón and Pamplona.
Original story: Expansión (by Sergi Saborit)
Translation: Carmel Drake