27 April 2016 – Expansión
The holiday apartment manager and developer, Pierre & Vacances, which has been operating in the Spanish market for 10 years now, has recorded average annual growth of 44% since it launched in Spain in 2005, with a portfolio of 215 apartments. Moreover, it intends to maintain that growth rate over the next few years, and whereby double its presence by 2020.
Specifically, the firm expects to expand its operations from more than 4,000 holiday apartments across 45 complexes in 2016, to 8,000 apartments by 2020, at the same time as doubling its turnover from €50 million to €100 million. In 2016, the group will incorporate five new complexes and 600 apartments. Moreover, it has renovated the Hotel El Puerto in Fuengirola.
Over the last ten years, Pierre & Vacances has invested €70 million in Spain, however, it does not currently own any assets, according to the Chairman of the Spanish subsidiary, José María Pont. One of the group’s business lines involves searching for institutional and private investors willing to purchase real estate assets with lease contracts spanning 10-15 years and returns of between 3.5% and 5% per annum. In addition, the firm has reached agreements with investment funds, which have invested €65 million in assets managed by the firm.
Looking ahead to the future, given the lack of stock in certain areas such as the Costa Brava, Balearic Islands and the Costa del Sol, the group is considering launching projects “from scratch”, including constructing and operating the assets itself. “In certain areas, the circumstances in the market lend themselves to taking on more risk”, says Pont. The Director says that Spain is one of the group’s strategic axes, along with China, where Pierre & Vacances has reached an agreement with HNA to develop five large projects over the next three years.
Original story: Expansión (by Rebeca Arroyo)
Translation: Carmel Drake