Tag: instalment

Tinsa: Residential Land Prices Rose By 4.1% In Málaga In Q2

17 July 2017 – Diario Sur

The housing sector in Málaga is continuing to grow. The price of residential land in the province rose by 4.1% during the second quarter of this year compared to the same period last year, to reach €1,399/m2, which is €154/m2 higher than the national average, according to data from the appraisal company Tinsa. It represented the highest increase in Andalucía and the sixth highest in Spain as a whole; and it consolidates the upward trend seen over the last two years, a situation that has generated concerns about the possibility that the sector is heading towards a new real estate bubble.

The Director General of the Institute of Business Practice (IPE), José Antonio Pérez, said that, for the time being, the growth is “sustainable”, although he warned that the lack of buildable land on the Costa del Sol to meet the current demand from property developers and investors will limit this trend and may lead to a disproportionate rise in prices in some enclaves. Pérez attributes the lack of supply to “restrictions” imposed by the general urban planning orders in certain municipalities and the slow pace of urban planning procedures. (…).

Tinsa’s report also reveals that the average mortgage granted to Malagan households amounts to €126,815, the seventh most expensive in the country, with a monthly instalment of €592. The percentage of household income spent on paying the first year of a mortgage is 27.6%, almost eight points above the national average (19.9%). The appraisal company highlights that this statistic makes Málaga the province where families spend the highest percentage of their income on mortgage repayments, above the Balearic Islands and Barcelona (21%).

Málaga also leads the list of provinces with the highest number of house sales closed in the last four months, with respect to the size of its housing stock: 32.1 for every 1,000 homes. It was followed by Alicante and the Balearic Islands, which also have “a clear tourist component”, said the report. The appraisal company reminds its readers that the province is home to “a large number of high-end homes” aimed primarily at foreign buyers, which put upward pressure on average house prices.

By contrast, the IPE considers that it is “a mistake” to draw conclusions at the provincial level “because you cannot compare the situation in Villanueva del Trabuco, for example, with that of Marbella”. The institute, which specialises in the real estate sector, highlighted the sea fronts and golden triangle formed by Marbella, Estepona and Benahavís as the areas where demand for residential land is highest, as well as the capital, where Limonar and Valle del Guadalhorce are positioning themselves as the new enclaves for future urban development.

House sales

The Real Estate Pulsometer compiled by IPE confirms that Málaga is seeing one of the strongest recoveries in the sector, together with Madrid, Barcelona and the Balearic Islands. Investors, savers, funds and individuals comprise current demand, which caused house sales to grow by 6% last year; and a similar rise is forecast this year. Currently, half of all purchases are paid for in cash and the other half are financed through mortgages (…).

Original story: Diario Sur (by Alberto Gómez)

Translation: Carmel Drake

Anticipa Has Accepted 2,400 ‘Daciones En Pago’ In 1 Year

18 April 2016 – El Periódico

Anticipa Real Estate, the real estate manager that the fund Blackstone acquired from CatalunyaCaixa, began by purchasing a portfolio of non-performing mortgage loans from the former savings banks for €3,600 million. The portfolio included 40,000 mortgages worth €6,400 million. In addition, it bought portfolios of property developer loans from Sareb and CaixaBank. Since April 2015, when that operation was closed, Anticipa has worked to recover those loans and the underlying collateral – the repossession of the asset -. During this period, it has signed agreements with 3,000 borrowers, of which 2,400 have resulted in ‘daciones en pago’ – “the handing over of homes in exchange for the cancelation of debt” – and 600 have resulted in the renegotiation of the loan, in such a way that the borrowers can make their mortgage repayments, according to Anticipa’s own summary of its first year of management.

The servicer – which is also responsible for managing the real estate assets of CatalunyaCaixa, now BBVA – bought the portfolio on 15 April 2015 and between then and 30 March 2016, it has closed around 400 operations per month. “We have signed 20 operations per day”, say sources at the entity. “And we have prioritised friendly relationships to enable both parties to reach an agreement”. The entity highlights that this process has been carried out whilst maintaining a good understanding with the platforms of people affected by mortgages (PAH), although they acknowledge that there are certain discrepancies with the PAH in Barcelona, which regards Blackstone as a “vulture” fund, even though it is a long-term real estate investor, which is firmly committed to the rental management business in Spain.

Anticipa highlights that it applies the code of good practice under Spanish legislation, whereby those families who have nowhere to go after a ‘dación en pago’ are offered social housing. In fact, 25% of the borrowers of the 40,000 mortgages pay their monthly instalments on time. Anticipa sends out an invoice each month and collects the corresponding funds. Of the remaining 75%, some (25%) of the borrowers pay intermittently and the rest (50%) do not pay at all. The company prioritises enabling those borrowers who pay intermittently to become regular payers, through the refinancing of their loans. “We apply a partial discount, we amend the term, the interest rate and the loan principal, to reduce the instalment and whereby facilitate the payment”, explains the entity.

Case by case analysis

If the borrower is still unable to pay, he is offered a ‘dación en pago’, and the remaining debt is cancelled in most cases. “Each case is analysed on an individual basis”. Anticipa helps the borrower to find a home if he has to leave or offers him a property to rent “at market price” or by means of “social housing”, as appropriate.

The entity does not rule out mortgage foreclosures when there is no other way of reaching an agreement with the borrower…But, “we have not carried out any evictions”, say sources at the entity…and the objective is to negotiate in order to avoid eviction in all cases”, they add.

Anticipa, led by Eduard Mendiluce…employs 360 people, of which almost 150 are dedicated exclusively to negotiating with borrowers. (…).

Original story: El Periódico (by Max Jiménez Botías and Olga Grau)

Translation: Carmel Drake

Quabit Signs Debt Refinancing Agreement With Sareb

24 September 2015 – El Día

The real estate company Quabit has completed the process to restructure the debt it holds with Sareb (which represents 72% of the group’s financial debt) and postpone the final repayment from 2016 until 2022.

Under this new agreement, Quabit agrees to make an early payment of €35.6 million before the end of the year, which will enable it to free up those assets that have potential for short term development. According to a statement from the company, it plans to develop almost 1,000 homes on those sites.

The signing of this agreement will give Quabit the option to conduct the capital increase, approved by its General Shareholders’ Meeting on 30 June, amounting to approximately €70 million.

At the same time, it involves the postponement of the repayment of the remaining debt until 2022, and establishes a calendar of annual payments, which increase as follows: 5.6% over the next three years; 31.4% over the following three years; and 63% in 2022.

Moreover, the agreement establishes compulsory early repayments of 20% of the debt, both in the event of the amounts received as the result of any capital increase (not applicable to the capital increase approved at the most recent General Shareholders’ Meeting), as well as the operating cash for each financial year.

In addition to the forecast compulsory debt repayments, Quabit may make voluntary early repayments for assets of its own choosing, to release them and individually promote their development and subsequent sale.

According to the President of Quabit, Félix Abánades, the company is poised to become a leading player in the Spanish real estate sector once more.

The signing of this agreement, he adds, will allow the group to manage and develop the company’s assets and to realise the capital increase that it is planning to carry out.

On 10 June, Quabit announced that it will increase its own funds by €189 million over the next few years by activating all of the tax credits it has pending, following the successful conclusion of the capital increase that will be proposed at the company’s next General Shareholders’ Meeting.

Original story: El Día

Translation: Carmel Drake