Taylor Wimpey Keen To Sell Its Spanish Subsidiary

3 March 2017 – Expansión

The British group has said that it will consider offers for its subsidiary, which builds homes along the Mediterranean coast and owns assets worth €150 million.

Taylor Wimpey said on Monday that its presence in Spain “is not strategic over the long term”, which is why the company is willing to sell its business in the country if an interested party submits an attractive acquisition proposal.

The Spanish subsidiary of the British real estate company generated an operating profit of GBP 20.6 million (€24 million) in 2016, a figure that doubled the amount (GBP 10 million) it obtained in the previous year. The improvement in results was due to an increase in house sales in the Balearic Islands, Andalucía and Alicante, the main areas where the company has developments.

The firm completed the sale of 304 Spanish properties in 2016 at an average price of €358,000, exceeding the 251 homes sold the previous year at an average price of €315,000. Most of those properties were sold to foreigners wanting a second home in Spain for their holidays or to retire. In total, Taylor Wimpey recorded turnover of GBP 93.6 million in Spain during 2016, compared with €58.1 million during the previous year.

“The residential market in Spain remained positive throughout 2016”, said the company on Monday during the presentation of its results for last year. “Although the weakness of the pound had an impact on British buyers, we still managed to generate a healthy rate of sales during the year, thanks to our diverse client base”. Citizens from Germany, Belgium and Sweden made up for the decrease in interest from UK investors, who in addition to being hit by a reduction in purchasing power due to the depreciation of the pound, were also fearful about the possibility of losing their rights to travel to and reside in Spain post-Brexit.

Pete Redfern, CEO at Taylor Wimpey, was asked during a meeting with analysts about the possibility of selling the firm’s business in Spain, once its profitability has been restored after the losses it suffered during the real estate crisis. According to Redfern, “the environment in Spain has improved, although it is still an environment that is not seeing a significant entry of new capital. Our business is functioning well, but if a good offer appears to buy it (then we would be interested). Our strategy over the long term does not involve staying in Spain”.

Taylor Wimpey has assets on its balance sheet in Spain worth GBP 123.7 million (€145 million). On 28 June last year, five days after the Brexit referendum, the company undertook a €100 million bond issue, to cover the currency risk of its Spanish business, whereby ceasing to finance its assets in pounds. Those bonds pay out an annual return of 2.02% and have a repayment term of seven years.

In total, the Spanish subsidiary has 19 developments, with a portfolio of 293 homes reserved, for a value of GBP 88 million.

The real estate company left the market in Gibraltar three years ago.

The Taylor Wimpey group, which besides Spain, operates only in the United Kingdom, recorded turnover of GBP 3,676 million in 2016 and generated a net profit of GBP 589.7 million.

Original story: Expansión (by Roberto Casado)

Translation: Carmel Drake

Estepona Receives 287 Million In Luxury Real Estate Investments

3 February 2016 – ABC

Real estate in Estepona is flatly taking off. Investment property in luxury homes recorded consitently upward figures. “The euro is too low and that makes the British and the Nordic countries, which have the most valued currency, have raised their purchasing power by 20 percent,” Eddie Martinez, representative of Siesta Home, one of the companies that is considering investing in that town of Málaga, comments to ABC.  The City Council has received requests for construction of five maximum level residential properties that can exceed 287-million-euro investment. These are luxury constructions aimed at a customer with a high purchasing power and mainly coming from northern Europe countries.

So far, there are three promoters that have started their business and that are selling villas and luxury apartments on the ground. “Panoramia” from the Company Ikasa expects to build 400 homes in lands of the city with a progressive investment of 205 million euros during the coming years. In a first step, the company has already planned the building of the first 74 residences in the Park of Las Mesas. It is an exclusive area of ​​126,000 square meters, whose main attractive is to offer a place for both rest and longer stays.

As reported by the company, the complex will be equipped with an area of ​​large commercial centers, gardens, sports facilities, school and institute. A place that is not only intended to spend holidays or retiring, but also to build a life in the area. “Estepona ensures the greater appreciation of real estate investment on the entire Costa del Sol” says Haryán Rodriguez, CEO of Ikasa, who affirms that “the latest political developments in the neighboring towns make their recovery and growth rate double that of the rest of the coast”.

Under this revaluation Siesta Home is also making a strong commitment with urban development in the city. The company, of Scandinavian origin, is building luxury villas at 150 meters from the beach. This is a promotion of 52 mansions in “Sunset Bay Village”. The investment will be around EUR 50 million and will be a residential complex with private security and clubhouse for proprietors.

According to the promoter, the prices of these houses will start from 695,000 euros. “It is a combination of cultures,” says Eddie Martinez. The company seeks to build on this coastal enclave a residential complex that combines modern buildings with the Mediterranean vision of Estepona. “The views of the complex are also a mix of cultures with the appearance of the Strait of Gibraltar and the African coast,” emphasizes Martinez.

With the arrival of the new year, the municipality has given the green light to another housing investment. It is an enclosed  luxury complex with paddle courts, putt-green and facilities such as gym or spa. It is a complex of 123 homes with an investment of around 32 million euros in the area of El Marqués de Guadalmina. The properties are located within a privileged enclave, with direct access from the highway and the proximity to the sea or the Benahavis mountains. Zahira Group has already begun marketing these products with prices ranging from 139,000 euros to 417,000 euros per residence. On the other hand, in the area of Guadalobón, 50 luxury villas have already been planned.

Original story: ABC (by J.J. Madueño)

Translation: Aura Ree