Tag: company structure

Quabit Creates a Corporate Network to ‘Attack’ the Rental Market

24 April 2018 – Eje Prime

Quabit is looking to the future and is organising its business to respond to the new trends in the residential market. The company, chaired by Félix Abánades, has started to create a new corporate network under the activity of freehold properties, a business concept that is used for asset management with ownership rights. The constitution of these companies comes in response to “the evolution of the market and the importance of businesses such as the rental market”, according to explanations provided by Quabit to Eje Prime.

Specifically, the property developer has recently created four companies: Quabit Freehold Properties, Quabit Freehold Properties Levante, Quabit Freehold Properties Centro and Quabit Freehold Properties Sur, whereby covering a large proportion of the Spanish peninsula. All of the companies have their registered addresses at number 1 Calle Capitán Haya in Madrid, which is also home to Quabit’s headquarters.

In this way, the company is getting its business ready to meet the needs of new generations, who see renting as a more feasible option. These types of companies may also be the seed of a future Quabit Socimi, although sources at the company say that this option has been “parked” for the time being (…).

Quabit, recent steps

Last year and the beginning of 2018 have been very positive for Quabit. The property developer bid farewell to 2017 with a net profit of €14.4 million, which represented an increase of 80% compared to the €8 million it earned in 2016.

Moreover, the company recorded turnover of €535.7 million in 2017, although its sales fell by 83% due to a reduction in stock during 2016 and because new developments will start to be handed over this year, according to the real estate company. The market value of Quabit’s assets (GAV) as at 31 December 2017 amounted to €399.3 million.

Moreover, the group’s plans involve continuing to fatten up its portfolio with the purchase of new land to continue growing. In April, the company signed a line of credit for up to €50 million with the aim of financing the acquisition of buildable land focused on the construction of residential real estate assets.

The real estate company signed that loan with several funds advised by Taconic Capital Advisors UK and Grupo Royal Metropolitan España. Specifically, according to the agreement, the line will be used to finance 70% of the amount corresponding to the acquisition of land and taxes, whilst the remaining 30% will be financed by Quabit.

The signing of that line of credit formed part of the new investment financing scheme set out by Quabit in its Business Plan for 2017-2022 (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Hispania Completes Its Socimi-Conversion Process

21 June 2016 – El Mundo

Hispania, in which George Soros holds a stake, has completed its conversion into a Socimi by merging with one of its subsidiaries, which was already operating under that company structure.

The firm has concluded this internal reorganisation just days after it completed a €230 million capital increase, which it undertook to raise funds to finance new investments.

Hispania has completed its conversion into a Socimi, a decision approved at its last General Shareholders’ Meeting, by signing a public deed that officially merges the two companies in the Commercial Registry, according to a statement to Spain’s National Securities and Exchange Commission (CNMV).

Until now, the company was a listed real estate company; and one of its subsidiaries operated under the Socimi structure and carried out the majority of its operations. Thus, with this operation, Hispania has reorganised its company structure by integrating several subsidiary companies and converting its parent company into a Socimi. The merger will take effect from 2017 for accounting purposes.

Investments

After completing these two operations, the Socimi plans to invest around €400 million over the next “nine or ten months” in new assets to grow its real estate portfolio. It acquired several hotel assets a few days ago.

Nevertheless, Hispania is ruling out buying any new homes for rent, given the narrow profit margin that it considers those assets offer in comparison with others. As such, the company will place its focus on the office and hotel markets.

Residential properties already account for around 12% of Hispania’s existing real estate portfolio, which was valued at €1,463 million at the end of last year.

Original story: El Mundo

Translation: Carmel Drake