Tag: construction

ACS Gains €702 Million & Trims Debt by 14% in 2013

28/02/2014 – Expansion

ACS rediscovered the path of profits after having stopped the investment flow in Iberdola last year. The construction company gained €702 million in contrast to €1.928 million loss in 2012. Vast part of the income stems from international activity that added 86.3% to overall revenues of the company and from gains received for Iberdola´s product valuation.

The firm chaired by Florentino Pérez has not escaped unscathed when the electrical power reform hit. ACS preliminarily calculated the  cost to be borne over its wind and solar energy plants and established it at €199 million. The company´s profit fell by 0.3% and settled down on €580 million.

Hochtief, ACS´s German branch, contributed with €91 million. (…).

ACS´s turnover decreased by 0.1% to €38.373 million, while Ebidta was set at €3.002 million, 2.8% less than a year before. Spain constitutes 14% of all sales.

At the end of 2013, the company´s net indebtness was equal to €4.235  million (14.5% less than in 2012). (…). Throughout 2013, ACS issued bonds for €1.100 million.

Considering each business area separately, the construction division reduced its revenues by 0.4% and earned €29.559 million. International activity compensated the 23% domestic losses. Out of the €47.563 million portfolio of ACS, 93% of it is found abroad. (…).

In turn, the industrial area contributed with €7.067 million, while the environment advanced by 5.3% and generated €1.781 million. (…) The company was worth €26.6 per share yesterday (-0.6%).

 

Original article: Expansión (C. Morán)

Translation: AURA REE

Pre-owned Houses Sell Better Due to Low Prices & Great Offer

13/02/2014 – Cinco Dias

The doomest scenarios came true and the year 2013 was the sixth consecutive annus horribilis for the Spanish real estate market. (…).

According to the information gathered by INE (the National Statistics Institute), six years after the bubble burst hardly 40.000 dwellings are being started per year while during the boom around 865.000 permissions were being issued for new construction startup. What is more, houses suffer 40% to 50% depreciation, for example in 2007, 775.300 dwellings were sold whereas the last year registered only 311.414 transactions.

This means that instead od average 2.5 house sold that time, now only one changes its owner and a mere 4.6% of the construction volume in 2007 is being built. Also, record low number of mortgage granting is being noted down. Thus, no wonder than Spain lost 6% in its GDP and about 18% in the emploment rate.

As INE pointed out, 46.6% of overall housing sales last year corresponded to the new construction, whereas remaining 53.4% to second-hand houses. In case of the first, 145.241 transactions were carried out that is 6.8% less than the new flat sales in 2012.

However, last year 166.173 pre-owned houses sold, that is 2.2% more than a year before. The fact could be considered a rebound point (…).

Why the sales of new houses continue to fall while the second-hand´s climb up? Firstly, the supply of pre-owned dwellings is much larger and varied than the one of new houses. Most of the volume of the latter is focused on the unmarketable, unfinished developments in less attractive areas and on the second residencial houses along the coast or in touristic areas.

On the contrary, the supply of pre-owned houses is much more diverse and found all over the country, so a purchaser has got a lot of choice to pick cherries from. (…).

Obviously, prices and demand have got an influence on sales, too. In the first case, the lower, the better, of course. However, the demand persist linguishing due to small transaction volume but the optimistic predictions re-convince inverstors to look at Spanish houses again.

 

Original article: Cinco Días (Raquel Díaz Guijarro)

Translation: AURA REE

Santander, BBVA & Banco Sabadell to Construct 8.000 Dwellings

27/01/2014 – Expansion

The real estate market again calls attention of the bank, however still in a selective and progressive way. Santander, BBVA and Banco Sabadel will build 8.000 dwellings on their own land they possess in balance and that are situated mostly in Madrid, Catalonia, the Valencian Community, the Basque Country and Andalusia areas.

The majority of the lands, without development or with early halted construction works have been awarded to the entities as a payment of debts. According to the estimations, they are located in great value zones and are overprovisioned as a result of the coverages required by the Government´s financial reform.

Now, after seeing the signs of rewoken interest in the high value areas, the banks decided to develop the land with help of their real estate companies and put the homes on the market, (…) with significant discounts. (…).

Santander launches the biggest number of the projects, involving 119 own developments, out of which a half is being commercialized and the other half under construction, (…). The perfomance will result in 6.000 dwellings. The bank does not break the developments down in accordance to the geographical zones.

Madrid

BBVA is currently elaborating 11 housing developments, situated in the center of Madrid, in Alcorcón, Pontevedra, Bilbao, Valencia, Cordova and Hospitalet de Llobregat. (…). The bank´s real estate entity, Anida, will construct 847 houses, 1.237 parking spaces and a dozen of trade premises, in total 1.289 new real estate properties (…).

Banco Sabadell also has the residential developments on its own land and few days ago it announced investment of 150 million Euros in construction of 1.182 dwellings. The plots are located in the areas where the bank detected growth in demand or rise in the price per square meter (…), for instance in Cerdanyola del Vallès, Calvià (Majorca) and Murcia. Out of the 44 housing developments, 13 are under construction and 18 obtained permission for so.

(…) The banks also start to grant new developer loan to the companies that have survived the recession within the sector and are viable again. (…)  María Dolores Dancausa, the CEO of Bankinter, said at the Tuesday´s presentation on the results of the 2013 exercise that her bank also had granted the credits. However, only to those who came up with “very interesting projects”.

Santander, BBVA and Sabadell will build the houses, although they still dispose of a considerable stock of the unmarketable property (…).

Sector Reduces its Real Estate Exhibition

The development of owned land and the 8.000 dwellings by banks is an exceptional action. In the nowadays´context of the banks getting rid of their real estate property (…) 14 Spanish banking groups have had awarded real property (mostly empty homes, buildings under construction and land) valued at 39.226 million Euros (data from June 30th).

The entities healed the assets by joint provisions of 37.146 millons. The amount does not include the risk transferred to Sareb will cover 48% of the gross value. The portfolio will have been be cut by the year (…). At the moment, Sabadell has already announced that its real estate entity Solvia sold 18.501 properties last year, 34% more than it did the previous year.

Source: Expansion

Sareb, Best 2014 Developer

24/01/2014 – El Mundo

One of the most visible effects of the real estate bubble burst in mid 2007 was the paralyze of thousands of housing developments under construction that arose the appearance of the “ghost cities” all over the country. Apart from being the ugly element of the landscape, beyond the developments there are loss of job positions and an unpayable debt.

After multiple change of the owner, (…) most of the constructions fell finally into hands of Sareb that now decided to make a move.

Last week the company declared readiness to invest 100 million Euros to complete its 130 developments under construction – about 600 to be finalized by the end of 2014 – that means around 3.000 dwellings on sale on the market. The score makes Sareb the most active real estate developer.

(…) The units are mostly residencial and holiday houses, all of the in advanced stage of execution. (…).

Shadow of Demolition

Once Sareb completes the 130 developments, still it will have about 500 projects hibernated in various stages of execution. (…) The fact generated certain expectations concerning next step of the bad bank, as demolition became a sad consequenece of the real estate bubble burst. The entity does not reject the possibility. (…).

According to the development by geographical areas scheme, one can notice that the first to aim at will be Catalonia (40 projects), followed by the Valencian Community (21), then Galicia (12), the Community of Madrid (11) and Castilla and Leon (10). In turn, the plans do not foresee developments in the Basque Country, the Region of Murcia and Ceuta and Melilla. (…)

“Each development will have its own DIP (Debtor in Possession) that will coordinate and control other companies” – inform sources from the entity. (…).

Sareb will hire extrenal companies to sell the completed dwellings (…) that will additionally establish their prices. (…) Also, in order to give the “maximum guarantee” to the purchasers, the bad bank will sign up the aftermarket and maintenance service firms.

Source: El Mundo

Step Closer to New Block in Madrid Rio

22/01/2014 – El Mundo

The new block in Madrid Rio lacks only one administrative step to be start the building works off. The Housing and Town Planning commission agreed to take the project to the Plenary Session of Madrid City Council to obtain a final approval on the Special Plan to develop a large parcel on the Antonio López Street, on the bank of the Manzanares River, in front of the Matadero.

The complex will have a 50.900 square meter developable space, where a 27-floor hotel, a shopping center and spaces open to the public will be built. On the financial side, the project will be supported by Hypotheken Bank (…).

Previously, the parcel of 20.921 square meters has been used as a tip in respect of work on the M-30 highway and currently is squandered. (…). The investment is supposed to encourage the economy revival, especially in Usera, Carabanchel and Arganzuela districts, let alone the center of Madrid.

(…) The obligation to convert at least 10% of the developable area into the hotel has been removed, however it cannot overcome 25% top. (…) The 27-store building might be up to 90 meters tall. (…)

The ground floor, looking out on the Manzanares Avenue will be below the Antonio López Street level, where shops and restaurants are said to occupy less than a half of total space and they will be open to a square of two levels connected by a staircase. (…).

The project includes connection shafts with the Manzanares: a pedestrian one along the Matilde Gallo Street, other through a green area that will be created adjacenty to the Eugenio Caxes Street, and the third from the San Zacarías Street.

Moreover, the subject area will be provided with sustainability measures, like the use of renewable energy, isolative construction solutions, the intelligent control and regulation of illumination and the water use optimizing. Also, construction of 1.500 parking spaces is being considered.

Original article: El Mundo (Marta Belver)

Translation: AURA REE

Sareb to Complete Construction of 3.000 Dwellings This Year

After successful sales of thousands of properties to investors, Sareb, the company charged with giving the real estate assets of the bailout banking way out, foresees the completion of 3.000 flats being under construction by the end of the year.

In the zeal of asset management the company has got over 130 ongoing developments, total of around 3.000 dwellings, which will be easier to sell at better price if completed.

According to the sources of Sareb, the enterprise is ready to invest 100 million Euros to startup the construction works before summer and finish the developments in 2014, given that in a half of them only 20% is left to complete.

In fact, 60% of the developments have advanced up to 95% and the company foresees “nice perspectives” for commercialization of the properties.

In geographical terms, the properties are situated mainly in Catalonia, the Community of Valencia, Galicia, Madrid and Castilla y León, both in large and small cities.

Except for the sale, since its beginnings Sareb has been considering renting any of its 89.000 properties, but also completing the developments under construction or even demolishing them (…).

Sareb pursues at the best profitabilty. (…). In order to complete and sell the properties, the company called several tenders to choose the providers specialized in the technical and commercial management. (…).

Apart from this tremendous work, another challenge the company will face this year will be to take full advantage of 2.000 dispersed dwellings that are not urban developments and their sales in packages to the investors might be complicated.

For this property portfolio Sareb planned their temporal assignment to autonomous communities for the social rent purpose. (…) It has come to agreement with 7 of them.

The third great challenge the company is ought to face the loan management granted to small developer companies, finding solutions like the sale of properties with guarantee, dation in payment or application of discounts to the entities facing difficulties in paying their debt off.

Source: Expansión

Sabadell to Invest 150 Million Euros & Construct 1.182 Houses Within Demand Upturn Areas

Banco Sabadell does not want to miss the business opportunity detected within the vast awarded land portfolio it disposes of all over the country. Despite the huge number of flats it still shall sell, the entity has decided to run 44 developments on its property plots situated in the areas with sufficient demand (…).

In total, the 44 developments will lay the foundation for 1.182 houses fueled by an amount of 150 million Euros. All the developments will be carried out by the bank itself, through its real estate company Solvia.

The dwellings will be built on the plots located in urban areas and districts with clear demand (…) and in the cities where the housing prices per square meter has been consecutively climbing up in last 2-3 quarters, such as Cerdanyola del Vallès, Calvià (Majorca) and Murcia.

Source: Expansión

The Future Will Bring 128.000 Houses in Excess in Madrid. Dwellings Cheapen by 8.6%.

In a decade, between the years 2010 and 2020, in Madrid there will be about 275.000 houses in supply, both newly constructed dwellings and the pre-owned houses that at the moment remain empty but supposedly will go to the market. Nevertheless, during these 10 years barely 147.000 new houses will be constructed within the city, according to the real estate and demographic sources cooperating with the City Council.

Thus, in the Cibeles Palace they reckon that the pending urban developments (particularly situated in the south-east from the Hall) “shall be planned in tune with the real demand, taking into account the future growth in population” in the capital itself, as well as within the region. (…)

The preview of the Urban Development Plan for Madrid (PGOU), being in the consulting stage right now, estimates that around the year 2020 there might be 41.869 new houses for sale built through six PAU (the City-Planning Programs): Los Cerros (4.175), El Cañaveral (13.446), Los Ahijones (3.132), Los Berrocales (4.505), Valdecarros (13.371) and Arroyo Fresno (3.240).

Even though in several of the districts the construction works have not started yet. (…)

If it comes to the developments in the south-eastern part of the city, 34.000 houses are predicted to be constructed in the field with the sidewalks already laid and the sewers installed. This would be, for instance, the case of Valdebebas (…).

Finally, there is the 400.000 empty houses issue, said to be found all over Madrid. Only a half of them could be possibly sold (…).

In total, in the decade mentioned above, there will be a supply of more than 275.000 houses. Unfortunately, the city will demand only 147.350 new homes. Therefore, the real estate map of Madrid is going to be marked by 128.000 property in excess.

In the golden age of the real estate market, the Official College of Architects of Madrid authorized the construction of 78.793 new houses within the region in a single year. In comparison, the number of permits issued in 2012 oscilated a little bit higher than 8.000 and in the first three quarters of the last year it ended up at 6.238.

A strong impulse for the developments in the south-east is foreseen from now on by 2020 (…). At the moment, only El Cañaveral started to build houses as it has got 2.669 houses constructed out of the scope of almost 14.000 scheduled.

The most ambitious PAU is Valdecarros, gathering 48.000 houses constructed on its account. (…)

Besides the delays caused by legal matters (all the new constructions have been paralyzed within a year), the ballast of the recession propitiated the creation of the Framework Agreement on Facilitating and Accelerating Management of the Developable Land Areas Scheduled in the East Development Strategy. (…)

In order to allow the building projects in the new districts of Madrid, the city authorities pledged to consider the offers from the companies that want to “size and position” dwellings in the implementation stage, (…).

The price for a new home in Madrid continues to adjust with decrease of 8.6% in 2013. According to the data from the Valuation Society, the real estate market in the capital noted down (…) an average price per square meter at 2.726 Euros. The amount suggests a 41% reduction since the beginning of the crisis. The decline of price in Madrid is higher than the national average (7.8%), Europa Press informs.

An average size house´s price in the city of Madrid plotted out the level of 2003. During 2013, the prices which suffered the sharpest decline were recorded in: Ciudad Lineal (16,3%), followed by Villaverde (15,1%), Villa de Vallecas (12,2%) and the very Center (9,5%). Salamanca (4.542 Euros per square meter) keeps its leading position as the most expensive district, next are Chamberí (4.217) and Centro (3.650 Euros). On the other end of the ranking place the least expensive Villaverde (1.760) and Villa de Vallecas (2.087 Euros).

Source: El Mundo

Housing. The Number of Completed Houses Drops by 43.8% by October

Between January and October only 56.650 houses being under construction have been finished. This number constitutes a decrease in comparison to the same period in 2012 (100.801 houses) of 43.8%, according to the data presented by the Ministry of Development and collected by Servimedia.

The number of finished houses supports the negative tendency in the last exercises which began in 2013. Taking into account the bunch of 2012 with 120.206 units, the dip was equal to 28,4% and it summarized the five consecutive years of decline. Since the maximum number noted down in 2007 (641.419  completed dwellings), the market witnessed reduction of 81%.

Out of all the houses finished in the first 10 months of the year, 99.2% (56.175) corresponds to the private developers and 0,8% (475) to the public administrations. With regard to 2012, the number of houses constructed by the private developers fell by 43.2%, and the number of the public ones by 75.8%.

If it comes to the private enterprise, 32.787 corresponded to corporate entities facing annual drop by 46,7%; 18.243 to legal persons and owners associations (-32,4%) and 3.903 to cooperatives (-47,5%). Moreover, there are 1.242 work completion permits of other type for private developers.

On the other hand, the value of the construction material implementation proceding from liquidation dipped by 42,2%, down to 7.048,6 million Euros.

Source: El Economista

“The Stork” Sold to Dutch Investors

The luxury residential resort project was sold for only €5 million to a consortium of businessmen Raf Terwindt and Han Lampe from Nijmegen.

The resort inherited and sold by SNS Property Finance will be finished soon. Altogether, La Cigüeña (The Stork) has got an area covering 44.000 m2 distributed over 243 apartments. The real estate company´s parent institution, SNS Reaal needs to shed its €7.6 million debt and all property in balance sheet.

Source: PropertyEU