Aelca to Manage Sareb’s Land After Selling its own Assets to Vía Célere

2 October 2018 – El Economista

The property developer Aelca has sold its entire asset portfolio to Värde, including its land and developments in progress, which are going to be integrated into Vía Célere. Nevertheless, far from disappearing from our radars, the company founded by José Juan Martín and Javier Gómez is going to continue operating and, for the time being, is going to do so linked to Sareb, according to explanations provided by several sector sources speaking to this newspaper.

The company has been negotiating with the bad bank for months to sign an alliance that would turn it into the manager of a portfolio of land worth €800 million. At the outset, Sareb structured the operation in a different way, since its initial objective involved injecting those assets into a listed industrial company or one with concrete plans to debut on the stock market, to give liquidity to the land.

Nevertheless, Sareb’s plans for its property developer business took an about turn after both Aedas Homes and Vía Célere took the decision to exit the process in which they were finalists together with Aelca. In addition, the intentions of Värde, the main shareholder of both Vía Célere and Aelca, to integrate the assets of the latter into the former, were revealed, giving rise to the large property developer in Spain by asset volume, with a gross asset value (GAV) of €2.2 billion.

In this context, Sareb and Aelca sought a formula that would allow them to continue with their future partnership. And that involves creating a company with the bad bank’s property development business, in which it will hold a majority stake and Aelca will serve as the industrial partner and manager of the assets. Thus, according to the same sources, the most likely scenario is that a banking asset fund (‘fondo de activos bancarios’ or FAB) will be created, which will include land and residential projects from Sareb worth €800 million, in which the company chaired by Jaime Echegoyen will own around 90% and Aelca will acquire the remaining 10%.

On the other hand, the same sources state that Aelca will continue to buy land and build developments independently of Sareb. In this business, the founders of the real estate firm enter into play again, who despite having sold their stakes to Värde, will continue to be associated with the fund “to support the company as an independent manager and developer of residential properties in Spain”, explains the firm in a statement.

After the transaction, Javier de Oro will take on the role of Director General at Aelca, having served as Head of Real Estate at Aliseda, the exclusive administrator of Banco Popular’s real estate assets at risk.

Vía Célere, founded and chaired by Juan Antonio Gómez Pintado, will retain its identity and its 300 employees; depending on its on-going needs, it will resize its structure over the next few months. The new company will have the capacity to deliver around 2,000 homes in 2019 and 5,000 homes in 2021, with a more diversified portfolio, although ,most of its land is located in Madrid (38%), Málaga (20%) and Barcelona (11%), three of the markets with the highest demand.

Following the integration of Aelca’s assets, Värde will control 75% of Vía Célere, and the remaining 25% will be distributed between minority shareholders (Marathon, Attestor, BAML, Barclays, DB and JPM).

Original story: El Economista (by Alba Brualla)

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

Värde Will Integrate Aelca into Vía Célere to Strengthen the Latter’s IPO

21 July 2018 – El Economista

A new merger operation is on the horizon in the real estate sector, and it is going to star Vía Célere and Aelca. According to confirmation from several sources in the sector speaking to this newspaper, the two entities’ common shareholder, the fund Värde, is working in an active way to integrate the two companies with the aim of strengthening the structure of Vía Célere ahead of its upcoming stock market debut.

The fund and its partners in the real estate company (Marathon, Attestor, Bank of America Merrill Lynch, JPMorgan and Barclays) are currently holding conversations with the founders of Aelca to carry out an operation in which the assets of the property developer would be integrated into Vía Célere’s portfolio. According to the same sources, Värde, which owns around 80% of each real estate company, wants to close a preliminary agreement within the next two weeks, although the operation may not actually be executed until October and November.

The objective of the fund is to close the integration before the end of the year, in such a way that the company will be ready to carry out its debut on the stock market when the next sales opportunity presents itself. Following the debuts of Neinor, Aedas and Metrovacesa, the market has almost exhausted its appetite for the real estate sector, plus there has been some high volatility on the stock market due to political instability.

These circumstances have meant that the fund has not been able to liquidate its investment in Vía Célere so far this year, as it had planned, although, sources at the company say that no specific date had ever been set for the IPO. In the case of Aelca, its founders and shareholders, Javier Gómez and José Juan Martín, have been aiming (to list their firm) in 2019, a step that may now be taken under the umbrella of the Vía Célere brand.

With this move, once listed on the stock market, the firm launched and presided by Juan Antonio Gómez Pintado will be positioned as the property developer with the largest market capitalisation, amounting to €2.3 billion. Similarly, according to the same sources, the target for the delivery of homes by the new company would increase to around 5,000 units per year, thus reaching the figures planned by its competitor Metrovacesa, which also forecasts such volumes for 2021.

Before designing the integration process for the two property developers, Värde has also studied the possible merger of Vía Célere with one of the other large listed companies, although, that formula was giving rise to a giant with a volume of business that was not seen in the property development sector even in the boom years.

With the merger of the two property companies now on the cards, the new Vía Célere will have a land bank with capacity for the development of around 23,000 homes. To this figure, the plots that Sareb will inject into Aelca will have to be added, with an approximate value of €800 million, in the event that the property developer ends up reaching an agreement with the bad bank.

The American fund reached an agreement with the Avintia group in the summer of 2016 to acquire Aelca for around €50 million. Almost simultaneously, Värde launched Dospuntos from the leftovers of the former Parquesol, the real estate subsidiary of the Sanjose Group.

Six months later, it closed the purchase of the property developer led by Gómez Pintado for around €90 million to integrate it with Dospuntos and create a new giant in the sector, retaining the Vía Célere brand, which has become the fund’s new darling.

Created shortly before the real estate bubble burst, the real estate company is one of the few that managed to survive the crisis and if Värde’s plans do crystallise, it could position itself as the largest listed property developer in the country.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Aelca Debuts in País Vasco with Development of 311 Homes

15 March 2018 – Expansión

Aelca, the property developer controlled by the US fund Värde and the founding team, has made its debut in the País Vasco with the launch of a development comprising 311 homes in the town of Barakaldo (Vizcaya).

The company, which also has a presence in Cataluña, Madrid, Málaga and the Community of Valencia plans to hand over the first homes in 2020.

Specifically, this residential complex is going to be built in four phases. The first phase, marketing of which has already started, comprises 90 high-rise homes and 22 family properties. The construction of this first phase will begin in September this year and the first units will be handed over in the third quarter of 2020, explains the company. The second phase will comprise 119 homes, the third phase 40 units and the final phase 40 homes.

The firm constituted in 2012 by Javier Gómez and José Juan Martín, both now CEOs of the group, closed last year with a profit before tax (PBT) of €25.5 million, up by 154% and revenues of €132.2 million, up by 27%, and is preparing to continue growing through purchases.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Aelca Plans Stock Market Debut for 2019 After Investing €500M in Land

6 February 2018 – Eje Prime

Aelca has one objective: to debut on the stock market in 2019. The Spanish property developer thinks that making its debut on the stock market in 2018 would be too soon, but considers that the goal is achievable for next year. The company is ambitious in terms of the years ahead, in part thanks to the financial help that it is receiving from the fund that holds a stake in it, Värde Partners. The US firm has granted Aelca sufficient financial stability for it to commit to investing €500 million in land purchases between 2017 and the end of this year.

Last year, Aelca accumulated a portfolio of land sufficient to build 13,000 homes, across a large part of Spain. With a presence in Madrid, Malaga, Sevilla, Cataluña, the Community of Valencia and, as of a few months ago, Euskadi, the company spent €300 million in 2017 buying up developable land, an extremely scarce asset of late, according to complaints from property developers.

The roadmap of the real estate company led by José Juan Martín (pictured above, right) and Javier Gómez (pictured above, left) for 2018 involves starting to market around fifty developments all over the country, which means putting around 3,700 homes on the market. Aelca’s forecasts indicate that it will sell 2,000 properties (…).

Whilst in 2017, the property developer’s revenues ranged between €130 million and €140 million, and its profit amounted to between €25 million and €26 million, for the current year, the company hopes to exceed the €200 million threshold in terms of turnover.

Original story: Eje Prime 

Translation: Carmel Drake