San José Leaves Losses Behind With Profits Of €7.3M In 2015

2 March 2016 – El Economista

The San José Group generated a net profit of €7.3 million in 2015, compared with losses of €122.7 million in 2014, according to a statement from the construction and renewable energy company, which stated that its profits before tax rose by 49.5%, to €10.6 million.

The turnover of the group led by Jacinto Rey grew by 15.3% last year, to €536.1 million, thanks to a higher contribution from international construction work, which now accounts for more than half (58%) of revenues.

In fact, the group’s sales in the international market increased by 19% during 2015, to amount to €313.1 million, compared with a lower recovery of 10.4% in the domestic market, where revenues reached €223 million.

San José’s EBITDA stood at €43.8 million, up by 29.6% compared with 2014, whilst its EBIT doubled to exceed €30.7 million.

By business line, the construction segment contributed €442.1 million to the company’s sales, up by 15.8% compared with the previous year, meanwhile the concessions and services division recorded revenues of €46.6 million, up by 12.3%, driven by the definitive approval and launch of the concession phase of its hospitals in Santiago de Chile.

Meanwhile, San José’s sales from its energy division rose by 12.1% in 2015, to reach €12.7 million.

Original story: El Economista

Translation: Carmel Drake

Värde Buys San José’s RE Arm & Will Build 1,500 Homes

7 August 2015 – El Confidencial

After months working on the sidelines, the private equity firm Värde Partners has finally taken control of San José Desarrollos Inmobiliarios, the real estate arm of the Galician group. The US fund has purchased a 25% stake in the company from Banco Popular for €90 million, in a deal signed on Wednesday, taking its ownership stake to 51%.

From this position of power, Värde expects to immediately carry out a €60 million capital increase, in a move aimed at shoring up the company and laying the necessary foundations to start developing properties. The aim of the fund, which will invest €150 million in the company in total, through its purchase from Popular and the subsequent capital injection, is to start the construction of 1,500 homes across Spain, clearly underlining its commitment to the Spanish property market.

The US firm is one of the most active foreign investors in the sector, where it has now made three major investments. It all began in the Summer of 2013, when it partnered up with Kennedy Wilson in an agreement to acquire Catalunya Banc’s real estate management platform for almost €30 million, although the two parties ended up breaking that pact a few months later.

The two firms crossed paths once again at the end of 2013, when they pipped Centerbridge at the post, to acquire Aliseda, the real estate arm of Banco Popular, for €815 million. That operation allowed them to take over the management of mortgage-backed loans with a net value of €9,350 million and foreclosed assets worth €6,500 million.

Far from being content with that transaction, Värde then began to acquire stakes in San José Desarrollos Inmobiliarios through the back door, by purchasing loans from its creditor entities. It signed those purchase agreements with discounts of around 90% and whereby became the company’s main creditor, just when the parent company of the Galician group was finalising the refinancing of its €1,600 million debt with the banks.

The final agreement was signed at the end of 2014 and involved dividing the company chaired by Jacinto Rey (pictured above) into two: on the one hand, the construction business, and on the other hand, the real estate company, which it was agreed would pass into the hands of the creditors to repay €743 million of the debt.

Sources state that Värde does not currently have any plans to integrate Aliseda with its recent purchase of San José Desarrollos Inmobiliarios…(…).

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Sareb Sells Its Debt In ‘Grupo San José’ To BofA

1 July 2015 – Faro de Vigo

Sareb, also known as the ‘bad bank’ has decoupled itself from Grupo San José‘s refinancing program. Sources confirmed yesterday that the body chaired by Jaime Echegoyen (pictured above) has sold the liability that it held with the Pontevedra-based construction group and will therefore not participate in the €100 million warrant issue (which may be convertible into shares) scheduled by the company. According to the same sources, the bad bank has sold its debt to Bank of America, which hereby strengthens its position as a creditor of San José and will acquire more than half of the warrants.

According to documentation submitted by the firm chaired by Jacinto Rey – which successfully dodged bankruptcy thanks to an agreement reached with its creditors – Sareb was going to acquire warrants amounting to €6.936 million. Sareb had voted against the Pontevedran group’s debt contract, but the Commercial Court approved the agreement and forced by the bad bank and KutxaBank – which had also rejected the program – to underwrite the obligations.

With the decoupling of Sareb from the construction group, the creditors that will acquire warrants will be: Bank of America (almost €54 million), Banco Popular (€25.1 million), Deutsche Bank (€10.468 million), Barclays Bank (€10.037 million) and KutxaBank (€251,241). According to the terms of the contract, this group of creditors will take ownership of 35% of the Galician group if it is unable to repay its €100 million loan in 2019. By virtue of the construction company’s bailout agreement, the creditors have now taken over control of the company’s real estate division, comprising assets worth more than €1,400 million (primarily land, completed developments and buildings for rent).

Original story: Faro de Vigo (by Lara Graña)

Translation: Carmel Drake

Who’s Who In The ‘Operación Chamartín’ Project?

2 March 2015 – Expansión

Madrid / The most important real estate project to be undertaken in Spain in recent years is being driven by BBVA and the San José group, which together own the development company; three public bodies are also participating in the project, as well as companies such as Renfe.

On 30 January, a swarm of photographers surrounded tens of public figures including distinguished representatives from the financial world, such as Francisco González, Chairman of BBVA, and Spanish businessmen and politicians. It was not a chance encounter, but rather a meeting to formally present of one of the largest real estate developments ever planned in Spain and one of the most important in the world today: the Castellana Norte project.

The official presentation of the development, known until now as Operación Chamartín, put the finishing touches to more than two decades of negotiations and collaborative work between public and private companies.

The project, which will require an investment of almost €6,000 million for the development of almost 3 million square metres (of land), has required consensus from the developers, BBVA and the constructor group, San José, as well as the Town Hall of Madrid, the Community of Madrid, the Ministry of Development and executives at Renfe. But, which role will each party be taking on?

“This would not have been possible without the support of BBVA”, announced one of the real estate experts who has worked, together with 31 professional teams from more than twenty countries, on the preparation of the Castellana North project. The financial entity owns 75.5% of the plan’s developer, the Castellana Norte Madrid company (formerly Dutch), having inherited the stake from Argentaria following its acquisition in 1999. The company is the owner of the rights of 61.6% of the land (amounting to almost two million square metres).

Its partner in this (development) company is the construction group San José. The company owned by Jacinto Rey had to divest its real estate assets during the last refinancing process it underwent. Nevertheless, it managed to retain its stake in the former company Dutch, showing its commitment to this project, which is expected to be executed over 20 years.

After the Castellana Norte company, the Town Hall of Madrid owns the next largest plot of land, with a 5.3% stake. On 19 February, the Council approved the revision of the Partial Plan for the Interior Reform of Operación Chamartín (Plan Parcial de Reforma Interior de la Operación Chamartín), which will organise the 3,114,336 square metres under development.

In that document, the Town Hall has committed to carrying out the construction works of the Nudo Norte (North Junction) and Nudo Fuencarral (Fuencarral Junction) set out in the plan, although the expenses incurred will be borne by the developer.


62% of the land owned by the company Castellana Norte was transferred from Renfe. This land is partly occupied by the train tracks that converge at Chamartín station. The railway company, which reports to the Ministry of Development, will receive €1,250 million for the transfer of this land over a 20 year period.

Furthermore, Renfe, which owns 1.4% of the land, together with Adif, will take responsibility for the execution of the remodelling of Chamartín Station; the construction of the new tunnel to connect the high speed line between Atocha and Chamartín; the construction of the stations in Fuencarral; and the construction of the structure that will cover the tracks.

Meanwhile, the Community of Madrid will be responsible for the design and execution of the construction of the new metro line that will run through the area, but the cost of that will be borne by the management company.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake