Tag: business plan

Quabit Completes €45M Capital Increase

10 December 2015 – El Economista

Quabit Inmobiliaria has successfully completed its capital increase amounting to €45 million, according to a statement by the company.

The company’s share capital increase was over subscribed, which means that it will need to adjust the offers received during the third round, discretionary allocation period, which concluded on Wednesday.

The President of the company, Félix Abánades (pictured above), committed €4,403,157.08 (97,847,935 newly issued ordinary shares) to the capital increase.

Following the operation, the President holds a 21.2% stake in the company, 3.37% directly and 17.83% indirectly through companies that are wholly owned by his companies Grupo Rayet (17.30%) and Restablo Inversiones (0.53%). In total, the President has subscribed 9.78% of the total capital increase amount.

During the period for preferential subscription and request for additional shares (the first round), €11,540,394.27 (256,453,201 newly issued ordinary shares) were subscribed and during the period for the allocation of additional shares (the second round), a further €13,759,835.04 (305,744,112 shares) were subscribed.

Through this increase, Quabit is strengthening its equity structure and will have the funds available to undertake the investments forecast in its business plan for 2015-2020. As a first step, the company is planning to allocate €35.6 million to repay its debt with Sareb before the end of the year, which will allow it to free up assets with significant potential for development in the short and medium term.

The capital increase marks the beginning of a new strategic cycle focused on the creation of value and a return to growth, according to the company.

The starting point for the business plan focuses on the promotion and development of its own portfolio of assets, as well as undertaking new investments. The combination of all of these lines over the next five years will result in the strengthening of net equity (increasing own funds by almost 800%) and a significant reduction in bank debt, according to the company.

“The confidence of the markets in the Spanish economy and the launch of the real estate sector have also reflected well on the completion of the operation”, explained Abánades, for whom “the excellent result demonstrates investors’ confidence in Quabit and a strong boost to the company’s strategy”.

Original story: El Economista

Translation: Carmel Drake

Quabit Plans To Invest €470M Over 5 Years

22 October 2015 – Expansión

Yesterday, the listed real estate company Quabit, controlled by the Rayet group, presented its business plan for the next five years (2015-2020), which includes planned investments of €470 million.

These investments will focus on the purchase of urban land, primarily in Madrid, Barcelona, Valencia and the Costa del Sol, with the aim of building housing developments on the plots “immediately”.

Thus, Quabit expects to deliver more than 3,000 homes (727 from assets in its existing portfolio and 2,310 from new investments) and whereby generate revenues of €954 million.

Moreover, the real estate company will generate turnover of €76 million from the sale of land in its portfolio, taking its total revenues to €1,030 million over the next five years.

The strategic plan also provides for the payment of dividends, in both shares and cash, amounting to €59 million and the cancelation of debt amounting to €63 million through the transfer of assets in lieu of payment. Yesterday, Quabit’s shares closed trading at €0.08, down by 2.44%.

Original story: Expansión (by R.R.)

Translation: Carmel Drake

Sareb Expects Its Business To Normalise By Start Of 2016

20 October 2015 – Expansión

Sareb is close to restoring the cruising speed of its business. That is what its President, Jaime Echegoyen, confirmed yesterday before the Senate’s Finance Committee: “From what we are seeing and given the pressure we are exerting to ensure that the migration of assets (to the new managers: Haya, Altamira, Servihabitat and Solvia) is completed as quickly as possible, I think that we will be back to providing a normal level of service by the first quarter of next year”.

This (migration) process caused Sareb’s turnover to drop by 10% during the first half of 2015. Echegoyen confirmed that the arrival of the new managers is already being felt in the second half of the year, despite the fact that the handover will not conclude until the beginning of 2016: “During the second half of the year, we are already in a much better position to fulfil our objectives and undertake our commercial activity than we were during the first half, and that will all be reflected in the numbers”, he said.

The transfer of assets was one of the points of interest during Echegoyen’s appearance in the Senate, together with the new accounting circular pursuant to which Sareb will have to make extraordinary provisions at the end of the year.

“In the likely event that capital requirements arise, the company has €3,600 million of convertible subordinated debt, which is more than sufficient to meet the requirements of the accounting circular”, explained Echegoyen. In response to questions from members of parliament, the President of Sareb went even further and said that “these own resources are sufficient to enable the company to fulfil its mandate and its business plan over the remainder of the entity’s twelve year life”.

Social housing

Echegoyen also used his appearance to announce that Sareb will double the number of homes available for social purposes, from 2,000 to 4,000, through the agreements it has in place with several autonomous regions and town halls, such as Madrid and Barcelona.

Original story: Expansión (by J. Zuloaga)

Translation: Carmel Drake