Montebalito Losses Rise, Reaching 830,000 Euros

14 August 2018

The real estate company’s Ebitda rose by 24% in the first semester compared to the same period in 2017, to 773,000 euros. In the year to June, the company had revenues of 4.6 million euros, up 22%.

Montebalito’s losses have increased. The Spanish real estate company’s losses went up by 14.6% in the first half of the year to reach 830,000 euros, the company reported to the National Securities Market Commission (CNMV). The company attributed the loss to the “negative impact of exchange rates (a depreciation of 17% for the dollar and 14% for the Brazilian real versus the euro) and losses on its trading portfolio.”

The group registered, on the other hand, a gross operating profit (Ebitda) of 773,000 euros, which represented an increase of 24% over the same period of 2017. The increase was led by an interannual increase of almost one million euros in the firm’s revenues, going from 3.8 million euros to 4.6 million euros, up 22%.

However, Montebalito’s financial losses reached 74% in the first half of the year. The real estate company almost doubled the 879,000 euros it had lost in June 2017, reaching a total loss of 1.53 million euros.

Two weeks ago, Montebalito announced that it would invest 8.8 million euros in the construction of forty homes in the Ciudad Lineal neighbourhood of Madrid. Also, last July, the historic real estate group announced that it had raised capital to amortise debt with Inversiones Malleo while it also awaits the incorporation of new partners as shareholders to execute its strategic plan. The developer foresees divestments of non-strategic assets in emerging countries and expects to concentrate on new projects in Spain and the European Union.

Original Story: EjePrime

Translation: Richard Turner


Santander & BBVA Are Developing 600 RE Sites In Spain

30 June 2015 – Expansión

The crisis filled up financial institutions’ balance sheets with property, as banks foreclosed all kinds of real estate assets in exchange for the payment of debts. Now that the economic recovery in Spain is gaining strength, those same entities are taking the lead in the property development segment – completing half-built properties and constructing others from zero – in order to obtain returns on the land that they now own.

Together, Spain’s two largest banks, Santander and BBVA, are currently involved in 600 property development projects all over Spain. Their rates of completion vary between 5% and 100%. And those figures do not include projects that the banks are financing separately.

BBVA’s real estate arm, Anida, owns 293 developments, which once complete will contain 2,418 homes in total. The majority will be finished between now and the middle of 2016. The bank has taken charge of building 21 of these developments from scratch, using land that it had both foreclosed and acquired.

Meanwhile, Santander is constructing 300 developments. The entity chaired by Ana Botín, has a policy that it only begins construction work once 30% of the homes at a given site have been sold off-plan. In this way, it ensures that the locations are appropriate and have sufficient guaranteed demand.

In both cases, the potential purchaser of a home enjoys advantages when it comes to taking out a mortgage with the corresponding bank. For example, the banks are willing to offer financing for up to 100% of the appraisal value of homes in these cases, when they would normally offer a maximum of 80%.

With this strategy, the entities seek to accelerate a reduction in the losses generated by their real estate divisions. At Santander, those losses amounted to €95 million during Q1 2015, which represented a 35% decrease YoY and the lowest negative contribution recorded since the creation of the RE arm three yeas ago. The bank sold 2,500 real estate units, including homes, offices, garages and storerooms during the first quarter of the year.

At BBVA, the losses amounted to €154 million during the same period, which represented a YoY decrease of 37%. It sold 2,100 real estate units in total. The entity chaired by Francisco González expects that its property division will emerge from its loss-making position in around two years.

Original story: Expansión (by Alicia Crespo)

Translation: Carmel Drake