12 May 2016 – Expansión
Neinor Homes was created in May last year with the aim of leading the property development market in Spain and making a name for itself for quality and customer service. That is still the group’s vision, according to the company’s CEO, Juan Velayos (pictured above), which aspires to be an “industrial, professional and transparent” company. The property developer, created just a year ago from the purchase of the real estate subsidiary of Kutxabank by the US fund Lone Star, owns land worth around €800 million. “This is the largest stock of quality, developable land in Spain, with a surface area that would allow us to construct 8,500 homes”, said Velayos.
The director explained that for years the sector was guilty of a lack of transparency. He insists on the importance of placing the customer at the centre of the business, as well as of relying on new technologies, sustainability and quality standards to lead a transformative change in this industry. “We have to distance ourselves from the image of shady real estate deals”, he said.
In this sense, Velayos believes that the dawn of the Socimis in Spain is “good news”. The director said that, following the crisis, we now need competent institutional fund managers in the property industry.
In terms of the entry of his business into non-developable land, Velayos acknowledged that, “in one way or another, the leading property developer in the country will have to participate in the ‘land factory’. But never as our main business”. The director also pointed out that Neinor has a stock of homes that will last five years.
The company aspires to deliver between 2,500 and 3,000 homes per year. Currently, it has around ten projects in the commercial launch phase and another 21 projects to be launched this year.
The real estate group is currently constructing 300 homes, is about to start building another 300 homes and will start constructing another 800 in Q3 2016.
Regarding a possible IPO, Velayos explained that it would be a “natural step”, although “at the moment”, it is not something is being considered. “We will debut on the stock exchange if the company’s leadership so demands it and the shareholders require it”, he said.
The Company closed last year with turnover of €340 million and a gross operating profit (EBITDA) of almost €25 million.
To achieve its objective of “putting a rubber stamp” of quality on its services, the company has doubled its workforce, from 80 to around 170 in just one year, and has launched a dedicated communication channel with its clients, Neinor Experience.
Velayos explained that it is an exclusive community for Neinor’s clients, through which the property developer offers advice on all issues, from the point a buyer reserves his home to the hand over of the keys and the subsequent after-sales service.
Original story: Expansión (by Rebeca Arroyo)
Translation: Carmel Drake