Defence Sells a Plot of Land Next to Castañón de Mena for Nearly €4 Million

27 April 2018

The sale is awaiting a final adjudication. The plot, in Hacienda Cabello, has 6,000 meters and a development potential of 8,572 meters.

The Ministry of Defense has put two properties on sale in recent months in Malaga’s capital, and both transactions are nearing a conclusion as they come close to completing the formal procedure of final adjudication. On the one hand, the divestment of the former Military Government building, located on the Paseo de la Farola, is going through a process of analysis of the documentation that was submitted by a company that made an offer to acquire the property at the end of last January by direct sale, with an assigned value of about 4.5 million euros. On the other hand, the ministry has just finalised the adjudication of a 6,036.24-square-meter plot of land in Hacienda Cabello, next to the Castañón de Mena residence, for almost 4 million euros.

The estate has an allocated residential development potential of 8,572.97 meters. The Institute for Housing, Infrastructure and Defense Equipment (Invied) confirmed the conclusion of the sale, although the sources consulted declined to provide official details of the sale value, as the adjudication has been awarded on an interim basis, and still requires the completion of the corresponding procedures.

The financial value related to this sale confirms that it would have been in a second auction. The estate’s exit value amounted to 4,431,860.23 euros, falling to 3,988,674.21 euros in the case of a second round. The property is in the vicinity of the military residence Castañón de Mena. According to the information sheet incorporated by Invied, the plot of land was awarded to the Ministry of Defence within the sector’s subdivisioning project, and the development works were already underway, with 14% completed up to the present moment. The development works were awarded by the Compensation Board to a temporary joint venture (UTE) composed of Dragados-Ervega-Insersa, with an initial budget of 4,744,075 euros (VAT excluded), an amount which was increased by another 551,825 euros in October 2017.

Original Story: Málaga Hoy – S. Sánchez

Translation: Richard Turner


Neinor Homes Had 60 Active Developments During Q1

27 April 2017 – Observatorio Inmobiliario

Neinor Homes accelerated its development activity during the first quarter of 2017 by beginning construction of three developments and launching another seven. By the end of the period, it had 60 active developments, corresponding to almost 4,000 homes, according to a statement made by the Company in the presentation of its quarterly results to the CNMV. The reported margin of the work-in-progress projects was around 22% higher than the Company’s target margin.

Juan Velayos, CEO of Neinor Homes, highlighted that “the company has had a magnificent performance during the first quarter, placing it well on the path to fulfil the objectives for the year. Pre-sales have been exceptionally high in what is traditionally a slow quarter. The acquisition of land is continuing with margins exceeding targets and the company’s development activity is accelerating, focused on protecting the margin. One development was successfully completed and the complementary lines of business are continuing to generate cash to finance the growth of the development activity”.

At the presentation of its quarterly results, Neinor Homes also highlighted the acquisition of seven buildable plots of land for €51.6 million for the construction of almost 700 homes. According to the company, all of the acquisitions have a target margin of around 20%.

The property developer also declared pre-sales worth €116 million, relating to 319 homes during the first quarter. The cumulative pre-sales for the year “exceed expectations by 60% in terms of volume and by 46% in terms of the number of homes. The company recorded a 4.5% increase in prices during the quarter and cumulative pre-sales amounted to €483 million and 1,511 homes”, according to its results report.

Meanwhile, the company reported that “the complementary lines of business are continuing to generate cash to finance the growth of the development activity: legacy sales amounted to €57 million, 1% above their accounting value and 41% above the cumulative forecast for the year. Servicing generated revenues of €6.5 million, 4% higher than the cumulative forecast for the year”.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

Carmena Is Set To Build 1,000 Rental Homes For €60M

19 September 2016 – Voz Populi

The rebirth of the real estate market will soon have a new, unusual, player in its midst: the Town Hall of Madrid. The capital’s Town Hall is getting ready to fire the starting gun for the construction of the first rental homes that it plans to build during its legislature. For the time being, it will put out to tender the construction of almost 1,000 homes, with an initial investment of more than €60 million.

Social housing was one of the key pillars of Ahora Madrid’s election campaign during the municipal elections to govern the largest town hall in Spain, which were held in 2015. For the first few months, the municipality’s new team focused on getting to know the financial circumstances of the ‘Empresa Municipal de la Vivienda y el Suelo’ (EMVS), which starred in spectacular asset sales during Ana Botella’s reign at the Town Hall, all intended to alleviate the city’s economic difficulties.

The Town Hall’s plans now include constructing 4,000 new social housing homes in Madrid before the end of its legislature. Work will begin on a quarter of them within the next few months, once the ten contracts that the mayoress’ team is currently preparing have been awarded (…).

The Town Hall’s property development activity will be launched once the role of the EMVS to contract and put homes on the market has been activated again, following the restrictions imposed on it in recent years. Previously, the company was in a very delicate financial situation due to the collapse in value of the large volumes of land that it had acquired at the end of the real estate bubble and, therefore, at exorbitant prices.

Those circumstances meant that the company had to divest assets, including packages of homes sold to vulture funds, which generated a lot of controversy, which has now been declared void in the courts and by the investigation committee created to try to determine the legal nature of the operation.

In April 2016, the Town Hall injected €17 million into the EMVS, through a capital increase, an amount that was intended to allow it to continue cancelling its debt but which, at the same time, allowed it to relaunch the public company’s construction activity. The developments are located in the district of Vallecas and in the areas of Rosilla and Nuestra Señora de los Ángeles, although the Town Hall’s also plans to construct homes in other areas of the capital too.

This is undoubtedly an unprecedented move and not only in the public sphere, but also in the private. Many real estate companies have cancelled their development plans due to the collapse of the market and the lack of demand, together with the problems generated by the large volume of empty homes in Madrid. The contracts that the Town Hall will put out to tender mean that almost 1,000 new homes will be constructed within two years of them being awarded.

Original story: Voz Populi (by Raúl Pozo)

Translation: Carmel Drake