Neinor Homes Looks to Invest €90 Million in 2020

3 January 2020 The real estate developer Neinor Homes needs to invest 90 million euros next year to achieve its stated investment goals, which the firm had already reduced in April. The firm has a target of €100 million for 2019-2020 and only investment 10 million euros in two plots of land in the Basque Country last year.

Juan Velayos’s exit last year hit the developer’s stock price and caused aftershocks that affected the rest of Spain’s developers as well.  The firm’s stock fell by 16.68% and has since struggled to reach new highs.

Neinor currently has sufficient land holdings to build approximately 12,500 homes. The land is in the Basque Country (2,500), Catalonia (2,100), Levante (1,300), Andalusia (4,400) and Centro (2,700).

The firm’s principal development is in Alcobendas (Madrid). Aura Homes is currently building 254 2-4-bedroom homes in a large gated residential community.

En español

La promotora inmobiliaria Neinor Homes necesita invertir 90 millones de euros el próximo año para alcanzar sus objetivos de inversión, que la empresa ya había reducido en abril. La firma tiene un objetivo de investir 100 millones de euros en 2019-2020, pero solo invirtió 10 millones de euros en dos terrenos en el País Vasco el año pasado.

La salida de Juan Velayos el año pasado provocó una fuerte caída en el precio de las acciones de la promotora y afectó también al resto de los desarrolladores de España. Las acciones de la empresa cayeron un 16,68% y desde entonces han luchados por alcanzar nuevos máximos.

Neinor actualmente tiene suficientes terrenos para construir aproximadamente 12,500 viviendas. Los terrenos se encuentran en el País Vasco (2.500), Cataluña (2.100), Levante (1.300), Andalucía (4.400) y el Centro (2.700).

El proyecto principal de Neinor se encuentra en Alcobendas (Madrid), donde Aura Homes está construyendo 254 viviendas de 2 a 4 dormitorios en una gran comunidad residencial cerrada.

Original Story: Merca2 – Javier Rosell

Translation/Summary: Richard D. Turner

ASG Homes to Invest €40 Million in New Rental Flat Project in San Sebastián de los Reyes

25 November 2019 – The Spanish subsidiary of the German developer ASG, ASG Homes, through its Fund VI investment vehicle, has finalised a deal to acquire enough land in San Sebastián de los Reyes (Madrid) to build more than 300 loft-style homes. The new rental housing project will involve a total investment of approximately 40 million euros.

With the acquisition, ASG Homes now boasts a 1,500-unit portfolio of rental flats, which it has built up in roughly a year and a half.

Original Story: El Economista – Alba Brualla

Adaptation/Translation: Richard D. K. Turner

Avantespacia Expands in Catalonia

30 September 2019 – The developer Avantespacia is finalising the acquisition of two plots of land in Catalonia, enough to build more than one hundred homes. The firm, which is controlled by Manuel Jové’s holding company, Inveravante, began operations in the province this year when it acquired another plot of land on Calle Roger de Flor, in Granollers, to building a 48-flat apartment building. The company is simultaneously finalising the acquisition of a new plot of land in the city to develop another fifty homes.

The company hails from Andalusia, where it has developments in Estepona, Fuengirola, Teatinos, Málaga and the San Roque Golf Club.

In August, the company began sales of a 128-home development in Pamplona, where it plans to begin construction in October. Avantespacia is planning on launching five new developments in Zaragoza, Vigo, the Canary Islands and Oviedo before the end of the year.

The company currently has 925 homes on sale and expects to deliver 260 units by year-end, with a turnover of 110 million euros.

Original Story: Eje Prime – Marta Casado Pla

Adaptation/Translation: Richard D. K. Turner

Developers Eye More Than €30 Billion in New Business in Madrid

21 August 2019

Developers are eyeing huge new possible investments they expect to build approximately 130,000 new homes over the next 25 years. That is in addition to major new investments in offices, retail spaces and industrial buildings. The sale of homes and other properties is expected to exceed €30 billion.

Developers are planning two new centres of investment in the north and southeast of the capital. The developments include Operation Chamartín (since renamed Madrid Nuevo Norte) and five new neighbourhoods to the southeast: Los Berrocales, Valdecarros, Los Cerros, Los Ahijones and El Cañaveral.

Operation Chamartín was finally approved last month by the municipal assembly, after a 26-year hiatus. A report by the city council forecasts that total sales of homes, offices and commercial areas will reach €13.198 billion, €10.2 billion of which will come from offices and retail areas. 10,500 homes will also be built in the area surrounding the Chamartín train station, 24% of which will have subsidies.

A development with a total of 118,737 homes is also planned for the city’s southeast. Sales for this area are expected to reach more than €20 billion over 25 years with profit margins reaching 20%. El Cañaveral, where construction has already begun, will see total investments of €3 billion. Next will be Los Berrocales and then Los Ahijones by 2021. Lastly, work will begin on Los Cerros and Valdecarros, with plans for more than 50,000 homes, the first of which will be ready in a decade. The owners of these developments, excluding El Cañaveral, calculate investments exceeding €13 billion, generating 965,000 direct and indirect jobs over the next few years.

Original Story: Cinco Días – Alfonso Simón Ruiz

Adaptation/Translation: Richard D. K. Turner

Neinor Homes Posts €12.4-Million Profit in First Six Months of 2019

28 July 2019 – Richard D. K. Turner

Neinor Homes, the developer led by Borja Egotxeaga, closed out the first semester of 2019 with 12.4 million euros in net profits, well above its loss of 8.2 million euros during the first six months of last year. The firm’s revenues doubled, year-on-year, in the period to 161.8 million euros. 85% of its turnover came from its operations as a developer.

Neinor increased its gross margins by 82.1% year-on-year, while, at the same time, reducing its expenses to €22.9 million this year.

The developer delivered 379 homes in the semester, 32% of its target for the year. On the other hand, the company’s NAV fell to €1.325 billion.

Original Story: Eje Prime

Metrovacesa to Invest Up to €1 Billion in Four Major Developments

17 July 2019 – Richard D. K. Turner

Metrovacesa, a real estate developer owned by  Banco Santander and BBVA, expects to build a total of 6,000 homes, along with office buildings, hotels and commercial premises around Madrid, Barcelona, ​​Sevilla and Valencia over the coming six years.  The firm is forecasting a total investment of one billion euros.

The project that is furthest ahead is 67-hectare complex in Palmas Altas, Seville. Metrovacesa is investing 400 million euros to develop 2,189 homes.

Original Story: EjePrime

Residential Real Estate Developers Pull Back in Malaga

14 July 2019 – Richard D. K. Turner

Residential real estate developers in Malaga have significantly scaled back their operations after several years of continual growth. In the first semester of 2019, those developers registered 3,901 new homes in Malaga, a fall of 4.9% year on year. The fall stemmed entirely from a sharp cutback in the second quarter, with just 1,752 projected units, down 31% y-o-y.

Francisco Sarabia, the dean of the Malaga’s College of Architects, blames the sharp retraction on short-term factors, possibly due to seasonality. Juan Manuel Rosillo, the president of the Malaga Association of Builders and Developers (ACP) also downplayed the data, stating that the fluctuation was likely due to seasonality or the current election.

The main decline was also largely focused on the provincial capital of Malaga. Development continued unabated in other, smaller cities, including Estepona and Vélez Malaga.

Original Story: Málaga Hoy – Ángel Recio

Housing Prices Break Records in 16 Regions… 11 are on the Coast

19 August 2018

The increase in the price of housing has been especially pronounced in the Spanish archipelagos.

The real estate sector is already beginning to show signs of heating up on some levels. Many indicators are still below those registered during the real estate boom, but others are already reaching record highs, and not only in Madrid and Barcelona.

In fact, of the 16 localities and municipalities that are already reaching new record highs, 11 are outside of these cities and on the coast.

Sant Just Desvern (Catalonia); Retiro, Salamanca, Centro and Chamberí (Community of Madrid); Benhavis (Andalusia); Calviá, Ibiza, Palma de Mallorca, San José and Santa Eulalia del Rio (Balearic Islands); Gran Alacant (Comunidad Valenciana) and Adeje, Arona, Granadilla de Abona and San Bartolomé de Tirajana (Canary Islands) are the areas where prices have already exceeded the records set during the pre-crisis real estate boom, according to data published by Idealista.

The residential market on the Spanish coast is experiencing a gradual recovery, but there are already cities that have returned to pre-crisis levels. The locations that first began to stabilise after that period are already demonstrating intense growth in prices and new housing construction activity.

However, there are also markets that are still showing signs of the bursting of the bubble, which can be seen in the oversupply of that time and the current weak demand, as Tinsa points out in its report on the Spanish residential market on the coast.

In one year, the areas that were in a situation of moderate adjustment have been reduced by half, from 27.6% to 11.2%. On the other hand, 36.5% of provinces and municipalities near the coast already are in the process of “clear recovery.”

Regarding the trend in prices, statistics from bank appraisals in the first quarter of 2018 reflect positive year-on-year growth in 104 of the 147 coastal municipalities that have available data, compared to 84 that showed positive growth in last year’s report.

Algeciras, Barbate, Cantabria and Asturias: the areas where the recovery is taking the longest to appear

The main signs of a recovery in the market already occurred three years ago, but 2018 has been a year for setting new records, with prices reaching highs in many areas, particularly in the Spanish archipelagos.

There are also other areas, such as the Costa del Sol, the north and south of the provinces of Alicante, the Maresme and around Barcelona. In recent months, some markets have begun to awaken to mainly national demand, where there have been signs of improvement.

On the other hand Algeciras, Barbate, Cantabria and Asturias are the areas where this recovery is taking the longest to arrive.

Need for new housing

The stock of new housing that remained after the outbreak of the crisis also beginning to be absorbed. The stock is at an average level in 47.7% of the areas, although in half of those the supply could be absorbed in the short term, according to Tinsa.

Among the locations where it is practically non-existent (19% of the areas), Ibiza stands out along with the Conil and Tarifa (Cádiz) coasts; Fuerteventura, Lanzarote and south of Gran Canaria, as well as the Basque coast.

It is natural that this has been accompanied by an upturn in the activities of developers. After years of almost total paralysis, where construction was conspicuously absent due to weak demand and overcapacity, developers once again began to increase their operations in specific enclaves of the Alicante coast and Costa del Sol.

The market has been recovering slowly. In half of the areas analysed (50.8%), Tinsa noted that the construction of new housing projects has begun, compared to 36.2% in last year’s report.

Original Story: Vox Populi – David Cabrera

Photo: Teresa García

Translation: Richard Turner

 

“There Will be Increasing Concentration Amongst Real Estate Developers in Spain”

26 March 2018 – ProOrbyt Expansion

Interview Adolfo Ramírez-Escudero – President of CBRE Spain: “We always actively analyse opportunities for acquisitions at a local level, but we are more focused on organic growth.”

Adolfo Ramírez-Escudero took the reins at Spain’s CBRE in 2013 with ambitious plans and a firm objective: to get a leg up on its competitors as the real estate market was waking up from a long and fitful slumber. Almost five years after his appointment as president of the consulting firm, and after reaching the end of the first stage of his business plan, Ramírez-Escudero fully intends to keep up the pace.

“In 2013 we started on a very aggressive growth plan. Our ambition then was to double the size of the company in all aspects: turnover, hiring and profits. We achieved that goal before our target of 1,000 days. The current plan entails multiplying the figure we reached by another 150%. Which means we’ll have tripled the size of the company in six years.”

Therefore, CBRE, which ended 2017 with a turnover of 211 million euros and a workforce of more than 1,000 employees, after hiring an additional 200 workers, is expecting annual growth of 13% until the end of 2019.

“In Spain, we have been a leader for years, and though we haven’t rejected the possibility out of hand of acquiring talent or buying companies, we have experienced significant organic growth,” the executive explained.

However, considering the consolidation process that the sector is undergoing, and after the mergers of Aguirre Newman with Savills, and Irea with Colliers, Mr Ramírez is willing to analyse any opportunities. “Our non-organic growth strategy has been more focused at the regional or global level, but we are always actively seeking local opportunities, and one can never know if we may decide to pursue any one of them,” he stated.

Ramírez-Escudero acknowledges that the real estate market’s current momentum has contributed to the group’s growth in Spain but, he points out, “our growth has exceeded that of the market as a whole. We are a global company and are not wholly dependent on Spain. We work with clients from all over the world, as well as with major tenants. Properties do not simply disappear, and we must always manage them. When the market enters a corrective phase, some assets are passed on to the banks, which must manage them. Later they are once again sold off to investors. Obviously, we prefer to operate when the cycle is on the upswing as the market is more amenable to targeting significant growth, but when that is not the case, we can also maintain growth by applying appropriate measures.”

Trends

According to the executive, understanding the market implies being conscious of competing in an environment in which borders are increasingly blurred. “This happens in all sectors and even more in real estate, which is very capital intensive,” he added.

An exception is the development business, which has a more local component. “Economic rationality and the search for advantages in production are telling us that the market is currently highly fragmented, and will likely undergo a measure of concentration,” the executive said.

Changing Landscapes

Mr Ramírez-Escudero also referred to other types of assets such as offices and shopping centres, where the level of supply and demand is changing. In his opinion, offices are increasingly resembling the hotel industry in that a company’s productivity is linked to their employees’ level of satisfaction. For its part, the retail market is also changing, but that there are “opportunities” associated with that. He adds: “People who say that they do not fear a change in the retail sector are misleading themselves in the same way that the people who believe that shopping centres are finished. We are operating in an ever-changing, varied environment and the shopping centres will have to adapt.”

Original Story: ProOrbyt Expansion – Rebeca Arroyo

Translation: Richard Turner

Europe GRI 2017: 11-12 September, Paris

12 July 2017 – Press Release

Aura REE & GRI Club have come together for Europe GRI. Senior real estate investors, developers, lenders, asset owners, major corporates and planners connect, share ideas and strengthen relationships. The collegial discussions enable you to interact and engage – much like an after-dinner conversation in your own living room. Identify like-minded peers, build relationships, and continue the conversation afterwards.

Members and non-members are welcome. If you would find it useful to join your peers at this exclusively senior-level club meeting, you can register here.

Register | Programme

Confirmed Participants include:

Brian Betel, Managing Partner, ASG Iberia Advisors
Steven Broch,  CIO, Aerium Group
Hunt Doering, Managing Director, Baupost Group International
Michael Zerda, Managing Director, Blackstone
Dale Lattanzio, Managing Partner, DRC Capital

Pedro Abella Langa, General Manager, H.I.G. Capital
Gregory Clerc, Managing Director, Bank of America Merrill Lynch
Duncan MacPherson, Managing Director & Head of Debt, Starwood Capital Europe Advisers
Cristina Pérez Liz, Managing Director, Kennedy Wilson
Norbert Müller, Managing Director, Deutsche Pfandbriefbank

Manuel Holgado, Partner, VKronos Investment Group
Tom Rowley, Managing Director, Angelo, Gordon Europe
Trish Barrigan, Senior Partner, Benson Elliot Capital Management
Michael Abel, Managing Director, TPG
Tavis Cannel,  Managing Director, Goldman Sachs International

Manuel Enrich, Investor Relations Director, Sareb
Miguel Pereda, CEO, Grupo Lar
Nic Fox, Partner & Head of Middle Europe, Europa Capital
Fraser Denton, Managing Director, UK & European Investments
David Matheson, SVP, MD Director Investments-Europe, Oxford Properties Group

Jeffrey Dishner, Senior Managing Director,  Starwood Capital Europe Advisers
Chris Evans, Founding Partner, Hamilton Hotel Partners
Ekaterina Avdonina, Managing Director, Delin Capital Asset Management
Christian Nickels-Teske, Head of Treasury Europe, Prologis Ian Worboys, CEO, P3 Logistic Parks 

Peter Cole, Chief Investment Officer, Hammerson
Carrie Hiebeler, Senior Investment Officer, Ventas, Inc.
Gordon Black, Senior Managing Director, Co-Head Europe, Heitman
Gregory Lanter,  Vice President Global Development, Club Méditerranée

Sessions Include:

Residential in Spain – Is product scarcity solved by the acquisition of developers?
NPLs – The last chance saloon?
Retail in Spain – Primary vs. Secondary cities
Co-Investment – As deals mature, will partners get their hands burnt?
European Gateway Cities – Where’s the smart money heading?
The Global Shift Towards Mediterranean Hospitality – New regions or new money?
Modern Retail – Convenience, leisure, technology or community?
Residential Alternatives – Are great operating partners essential or overrated?
What is Real Estate These days? – Financial asset or a service?

For event participation, contact:

Loredana Carollo | Club Director Spain
+44 (0) 20 7121 5089 | loredana.carollo@griclub.org | www.griclub.org

Original story: Press Release

Edited by: Carmel Drake