Quabit Buys ‘Rayet Construcción’ for €13.1M

16 May 2019 – Eje Prime

Quabit has acquired 83% of the shares in the construction company Rayet Construcción for €13.1 million as a means of “reducing uncertainties in terms of the costs and timeframes of its construction projects”, according to a statement issued by the company to Spain’s National Securities and Markets Commission (CNMV).

The company reported its results on Wednesday and announced a 5%-10% decrease in turnover due to delays in the delivery of its business plan, whereby following in the footsteps of its rivals Neinor and Metrovacesa, which have also revised down their results in recent months.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

CNMV Approves Millenium Hotel’s Stock Market Debut

26 March 2019 – El Confidencial

A new hotel giant is getting ready to make its stock market debut. Millenium Hotels, the platform that Javier Illán has been growing for the last two years, has just received approval from Spain’s CNMV to make the leap onto the stock market before the summer. The company will begin a road show with investors in April, with the aim of making its debut between the end of June and the beginning of July.

Millenium Hotels will start by trading on the MAB, before moving onto the main stock market once it is sufficiently large enough. The firm owns eight assets, including the 4-star Hotel Vía Castellana in Madrid, and has already received funding amounting to €100 million from mutual, insurance companies and family offices. Moreover, it is negotiating the purchase of four more properties.

Original story: El Confidencial (by R. Ugalde)

Translation/Summary: Carmel Drake

Realia Adopts RICS Standards for its Asset Valuations

21 March 2019 – Eje Prime

The Board of Directors of Realia has unanimously approved the decision to change the valuation method for its assets linked to property development to bring it in line with market practice.

The listed real estate company has notified the National Securities and Exchange Commission (CNMV) that it will adopt the July 2017 professional standards of the Royal Institution of Chartered Surveyors (RICS) from the end of H1 2019 onwards.

The company closed 2018 with a profit of €40.2 million, up by 31.8% and a portfolio valuation based on market value of €1.84 billion, up by 3.1% YoY.

Original story: Eje Prime 

Translation: Carmel Drake

Quabit’s Revenues Soared in 2018, but its Profits Fell by 53%

28 February 2019 – Eje Prime

Quabit’s revenues soared but its profits decreased. The real estate company closed 2018 with a net profit of €6.7 million, down by 53% compared to the previous year, when it reached €14.3 million. The company attributes that reduction to the “activation of tax credits in 2017, amounting to €26 million”, according to reports in a relevant fact submitted to Spain’s National Securities and Exchange Commission (CNMV).

The firm’s EBITDA also deteriorated, with losses of €25.3 million, a figure that quadruples the loss recorded a year earlier when it amounted to €7.3 million. “The negative impact in terms of EBITDA is due to the extraordinary effect of the valuation corrections on the land and the lower discounts on the debt”, said the company in a statement about its results.

In terms of revenues, they soared last year to reach €39.6 million, whereby multiplying the figure from the previous year (€5.7 million) eight-fold. At the end of the year, the gross value of its assets amounted to €506 million, 27% higher than at the end of the previous year. That growth was attributable to the company’s new investments and the revaluation of its portfolio.

In terms of its portfolio, Quabit handed over 190 homes in 2018 and also invested in its land bank, increasing it by around €180 million since 2017. It currently has around 4,000 homes in different phases of development and is working on the launch of new projects included in its business plan for 2018-2022.

Original story: Eje Prime

Translation: Carmel Drake

Montebalito’s Turnover Fell by 52% in 2018 & its Losses Amounted to -€2M

28 February 2019 – Eje Prime

Montebalito suffered in 2018. The group recorded losses amounting to €2 million last year, compared with the profit of €948,000 that it obtained in 2017. In parallel, the company’s turnover dropped by 52% to €7 million, according to reports filed by the company with Spain’s National Securities and Market Commission (CNMV).

The decrease in turnover occurred because there were no sales of singular assets in 2018 like there were in 2017, according to Montebalito. “If we strip out the effect of those sales, the group’s turnover rose by 32% YoY, driven primarily by an increase in the sales of developments located in Brazil and Chile”, he said.

Montebalito’s gross asset value (GAV) amounted to €135.7 million at the end of 2018, compared with €144.2 million last year. Similarly, the company has said that the total investment that it has to make for all of its projects in progress amounts to €32 million.

The firm’s investment volume in 2018 was €5.8 million, which represents a 51% increase compared to the previous year. That figure was justified by the acquisition of three plots: one in Madrid, one in Collado Villalba and one in Sevilla, in Isla de la Cartuja, for the construction of a hotel with 92 rooms.

Original story: Eje Prime 

Translation: Carmel Drake

Hispania’s Profits Fell by 56% YoY in 2018 to €96.5M

28 February 2019 – Expansión

Hispania recorded a net profit of €96.5 million in 2018, down by 56% compared to a year earlier, according to the accounts filed with the CNMV by the listed real estate investment company (Socimi) controlled by Blackstone.

Revenues from rental income rose by 6.8% to amount to €151.7 million, according to the Socimi’s accounts, which were managed by Azora until August, whereas now their management is divided between HI Partners (hotels), Rivoli (offices) and Fidere (homes), all of which are linked to Blackstone. The company is expected to cease trading on the stock market on 1 April.

In September, Hispania’s new management team decided that Azora would no longer manage the three branches of the Socimi, a move that resulted in the early termination of the contract, in exchange for the payment of a penalty amounting to €224 million.

Original story: Expansión

Translation: Carmel Drake

Sabadell Puts its Property Developer Subsidiary Up For Sale with Assets worth €1.2bn

5 February 2019 – La Vanguardia

Banco Sabadell announced on Tuesday that it is putting its subsidiary Solvia Desarollos Inmobiliarios up for sale. The property developer owns assets worth around €1.2 billion. The assets are mostly plots of residential land, located in prime areas of Madrid, Barcelona and other major cities, as well as 130 work-in-progress real estate developments.

Less than a week ago, the President of Banco Sabadell, Josep Oliu, announced at the presentation of last year’s results that “we are going to continue with our asset divestment policy”. On this occasion, Sabadell has chosen the investment bank Rothschild, according to the relevant fact sent to the CNMV, to circulate the sales prospectus amongst possible buyers. According to market sources, large funds such as Blackstone, Cerberus, Värde and Oaktree, amongst others, may be interested in buying the company.

The entity, led by Francisco Pérez, has around 40 employees, who will also exit Sabadell’s orbit. The sales process may last six months. Firstly, the candidates will have to submit offers and then a competitive process will be carried out.

This sale is running in parallel to the sale of 80% of the real estate manager Solvia. In theory, an agreement has been reached to sell that firm to Lindorff Holding Spain, which belongs to the Swedish fund Intrum, for €300 million. That price may increase by an additional €40 million if certain conditions established in the sales agreement are fulfilled.

Original story: La Vanguardia (by Conchi Lafraya)

Translation: Carmel Drake

Saint Croix Buys an Office Building in Madrid for €24M

31 January 2019 – Diario Vasco

The Socimi Saint Croix Holding has acquired an office building located on Calle Juan Ignacio Luca de Tena 17 in Madrid for €23.95 million.

The price of the building, which also includes 166 parking spaces, has been paid in part with two commercial premises owned by the company whose value amounts to €3.5 million, according to the Spanish National Securities Market Commission (CNMV).

Specifically, the commercial premises are located on Calle Caleruega 66, 68 and 70 as well as on Calle Rutilo 21, 23 and 25, both in Madrid.

In addition, the company has paid €20,385,500 in cash to complete the purchase price.

During 2019, the Socimi is planning to undertake a comprehensive renovation of the building to reposition it and adapt it to the standards demanded by the market.

Original story: Diario Vasco 

Translation: Carmel Drake

Urbas will Receive up to €6M from its Major Shareholders

22 January 2019 – Expansión

Urbas, a company specialising in the promotion and management of land, has signed an agreement with its reference shareholders Robisco Capital Markets and Quamtium to push ahead with the repayment of its debts. By virtue of this agreement, its shareholders are guaranteeing its financial stability and allowing it to obtain liquidity in exchange for shares in the company. In this way, the shareholders are going to inject up to €6 million into the company in exchange for up to 1.75% of the share capital.

These shareholders own almost 28% of the company each, according to the latest registers from the CNMV.

Specifically, Robisco and Quamtium are going to sign a line of credit for a maximum of €2 million to equip the company with the liquidity it needs to make its current payments, at least, until the end of 2019. Moreover, the shareholders have committed to acquire debt from Urbas’s suppliers and creditors up to a maximum of €4 million.

In exchange, Robisco and Quamtium are reserving the right to acquire part of the share capital through the share subscription, said the company to the CNMV. The increases will be undertaken at a maximum nominal value of €6 million, equivalent to 1.75% of the share capital. “The agreement allows us to consolidate the structure of the balance sheet and improve the financial ratios, at the same time as strengthening the activity, developing the businesses and ratifying the trust and commitment of the main shareholders”, said Juan Antonio Acedo Fernández, who was recently appointed as the President of the Group.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Urbas’s Share Price Soars by 44% After Appointment of New President

16 January 2019 – Eje Prime

Urbas Grupo Financiero saw its share price skyrocket on the stock market after appointing its new President. The company closed the day with gains of more than 44% on the main stock market, its largest daily increase since March 2016. The rise coincided with the arrival of Juan Antonio Acedo Fernández as the head of the company.

Specifically, the share price of Urbas skyrocketed by 44.18% on Wednesday to €0.0062, after opening the day at €0.043 per share. That boost took the company to levels not seen since October last year, according to reports from Europa Press.

A road engineer by background, the new President of Urbas has more than 25 years of experience in the real estate, construction and energy sectors, “where he has held several positions of maximum responsibility”, highlighted the company in a statement sent today to Spain’s National Securities Market Commission (CNMV).

At the end of the ninth month of 2018, Urbas owned a land portfolio spanning 18 million m2, spread over the regions of Aragón, Andalucía, Madrid, Castilla-La Mancha, Castilla y León, Murcia and Valencia. Currently, the company’s assets are valued at €34.8 million.

Original story: Eje Prime

Translation: Carmel Drake