Habitat will Invest €500M in Land Purchases by 2021

23 October 2018 – Expansión

Habitat, the property developer controlled by the investment fund Bain Capital, is planning to invest €500 million in land purchases between now and 2021.

The company, which has unveiled its business plan for the next few years, expects to hand over 2,000 homes per year from 2021 onwards. Currently, Habitat owns 800,000 m2 of land for the construction of 9,000 homes.

“Bain has provided sufficient capital to finance the purchase of land with own funds. There is no debt except for property developer loans”, explained Juan María Nin (pictured above), President of the real estate company.

To date, the firm has invested €70 million in the purchase of land and it is planning to invest an additional €50 million over the coming months with the aim of continuing its growth.

Brad Palmer, Managing Director and Head of Bain in Europe, said that following the entry of the fund, the company is “healthy and ready to grow”.

Palmer indicated that, for the time being, the fund is not thinking about an IPO, but rather is focusing on the purchase of land, constituting a good professional team and offering a high-quality product for its clients.

Similarly, he indicated that, in a market as fragmented as Spain, consolidation between real estate companies is possible, although it is too early to say what role Habitat will play in that process.

The CEO of Habitat, José Carlos Saz, indicated that although most of the portfolio is buildable land, the property developer is also opening the door to buying land under management.

Saz also said that the property developer plans to close the year with revenues of almost €100 million and a positive gross operating profit (EBITDA).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Aelca Invests €80M in Land in H1 & Will Hand Over 800 Homes in 2018

31 July 2018 – El Mundo

Aelca has closed the first half of the year with a good set of result. The property developer, founded by José Juan Martín and Javier Gómez, generated revenues of €54.6 million between January and June and profits of €10.65 million.

Moreover, it has already sold 99% of the homes that it plans to hand over this year, 800 units in total, worth €170.28 million.

In addition, the company has already pre-sold 78% of the units that it is scheduled to hand over in 2019, which amount to 1,185. During the first half of the year, the property developer has continued with its land purchase policy to enable it to continue building new residential developments in different parts of Spain. Thus, during the first half of 2018, it invested €80 million on the acquisition of land, so that its capacity to build currently amounts to 13,965 homes.

Aelca is consolidating its role as one of the property developers created in the heat of the resurgence of real estate activity. At the moment, the company has 2,375 homes that are work in progress.

Original story: El Mundo 

Translation: Carmel Drake

Realia Starts Building Homes with the Launch of 5 Developments

1 July 2018 – Expansión

The real estate company controlled by Carlos Slim has resumed its property development business with the launch of five new promotions, comprising 594 homes that, when they are handed over, will generate revenues of €208 million.

Realia is planning to continue to launch new developments on the portfolio of land that it owns, but it is also investing in new plots, such as the one it purchased recently from the Ministry of Defence in Alcalá de Henares (Madrid) for €27.5 million.

This is the first acquisition of land that the company made since the Mexcian magnate took control, which saw it join the wave of investments that companies in this area are undertaking in the land segment in light of the reactivation of the sector.

Nevertheless, after Realia stopped building homes at the beginning of the crisis, it now has a land portfolio spanning 1.85 million m2. The company says that it now has some of these plots under development in Madrid, Cataluña and Levante, areas that currently account for the greatest demand in terms of housing.

The real estate company includes the launch of new developments as a key strategy in the new phase that it is undertaking following the clean-up carried out since Slim acquired his share capital

This week, at its General Shareholders’ Meeting, Realia said that it is “ready” for the new real estate cycle, following the reduction and restructuring of its debt and the cutback in expenses, measures that it considers “are already reflected in the income statement”.

Original story: Expansión

Translation: Carmel Drake

TM Buys 165,000 m2 of Land in Benidorm

8 January 2018 – Eje Prime

TM Grupo Inmobiliario is starting 2018 with the largest purchase in its history. The property developer specialising in the construction and sale of large residential developments on the Mediterranean Coast has acquired 165,000 m2 of land in Benidorm. This purchase represents the company’s largest investment in land since it was created in 1969.

The acquired land is located one road back from the beach Playa Poniente in Benidorm and most of it will be used to build homes. The first properties are expected to go up for sale in the summer of 2019, which means that the first phase of constructed homes would be handed over in the middle of 2020.

This operation, the fourth undertaken by TM in the Alicante municipality in the last three years, not only completes the sales forecast per the company’s strategic plan for 2015-2019, it also assures its activity in the area for the next 10 years. The project will involve the development of around 1,200 homes in residential developments targeting both the domestic and European market, according to explanations provided by the group in a statement.

During this period, the company expects to invest around €260 million, over several phases of execution lasting two years each. Since 2015, TM Grupo Inmobiliario has successfully carried out the development, execution and sale of other developments in Benidorm, namely: Ocean Drive, Sunset Drive and ‘La Ermita del Mediterráneo’ in El Tosal.

Original story: Eje Prime

Translation: Carmel Drake