Aedas Homes Recorded Losses of €3.4M in Q1 2019

30 April 2019 – Eje Prime

Aedas Homes recorded losses of €3.4 million during Q1 2019, up by 47.8% compared to the same period last year (-€2.3 million). Nevertheless, the property developer’s results were in line with the business plan and revenues grew by 55% YoY during the same period to reach €14 million.

This year, the property developer controlled by the investment fund Castlelake plans to launch the construction of 2,580 homes and hand over 1,055 units. The firm has already sold 83% of the homes that it expects to hand over in 2019 and 55% of those forecast for delivery in 2020 (1,986).

Original story: Eje Prime 

Translation: Carmel Drake

Habitat Leaves its Losses Behind after €500M Capital Injection from Bain

2 April 2019 – Expansión

Habitat Inmobiliaria recorded revenues of €89 million in 2018, six times more than during the previous year. It also generated a profit, registering an EBITDA of €1.8 million, compared with losses of €9.86 million in 2017.

According to the company, this change in fortune has come about following its purchase by the US investment firm Bain Capital Credit at the end of 2017. Last year, Bain and Habitat’s new management team, launched a new strategic plan for the next three years, which included the contribution of €500 million for land purchases.

In 2018 alone, the property developer invested €121 million buying up land with a total buildability of 300,000 m2. As such, Habitat now owns a land bank spanning more than 1 million m2, which will allow it to build 10,000 new homes over the next few years. Currently, the property developer is working on the construction of 3,400 homes.

Original story: Expansión (by Rocío Ruiz)

Translation/Summary: Carmel Drake

Galil Capital Revises its Loss Forecast for 2019 Down to -€25M

1 April 2019 – Eje Prime

Galil Capital, the Socimi led by the Israeli businessman Gil Avraham Shwed expects to close the year with losses of €25 million. It has revised its forecasts down from losses of €46 million (-44%) after completing a €6.59 million capital increase, which will allow it to acquire new residential properties. As such, the Socimi expects to increase its rental revenues by 5% to €1.26 billion.

Galil Capital expects to add one small and one medium-sized building to its portfolio this year. At the end of June 2018, its portfolio comprised six assets and was worth €31.36 million.

Original story: Eje Prime

Translation/Summary: Carmel Drake

Sareb’s Losses Plummeted by 55% in 2018 to -€878M

28 March 2019 – Cinco Días

Sareb recorded losses of €878 million in 2018, which were 55% greater than those registered in the previous year. Moreover, the bad bank forecasts a similar result for this year.

Despite the disappointing results, Sareb ended 2018 with own funds of €2.6 billion, which represents a sufficient volume to not have to request any capital increase from its shareholders, which include most of Spain’s major banks and the FROB.

The President of the bad bank, Jaime Echegoyen, observed that his company is committed to the divestment of the problem assets that it acquired from the struggling banks during the crisis, and to maximise its returns. Sareb is competing against many of the banks, which are now selling large portfolios of real estate assets at significant discounts. Nevertheless, it is reluctant to match those discounts given that its cost of managing the assets is lower than the discounts being asked for.

Instead, Sareb has opted to transform the assets it owns by finishing suspended developments and building new homes on the land that it owns. Within the coming days, the company is expected to close an agreement with a property developer, which will build new assets on some of its land.

At the end of 2018, the bad bank recorded total revenues of €3.65 billion, down by 5% YoY. It sold 21,152 units during the year, up by 12% YoY. But, it continued to incur significant expenses – its financial costs alone amounted to €658 million, whilst its operating expenses amounted to €697 million, resulting in the aforementioned losses.

Since its creation in 2012, Sareb has now reduced its global portfolio by one third (€16.5 billion) and repaid 30% of the debt that it issued to pay for the assets in the first place (€15 billion).

Original story: Cinco Días (by Ángeles Gonzalo Alconada)

Translation/Summary: Carmel Drake

WeWork Doubled its Losses in 2018 Due to Global Property Purchases

27 March 2019 – Eje Prime

The US co-working company WeWork doubled its losses in 2018 to USD 1.9 billion (€1.7 billion), due to the huge outlay it made expanding its business around the world. Nevertheless, it did also double its revenues to USD 1.8 billion (€1.6 billion).

The company founded by Adam Neumann in 2010 closed 2018 with shared offices in more than 100 countries as well as rental contracts with several major corporates, such as Microsoft, Adidas and Citigroup, which account for one third of its tenants.

The valuation of the company, which leases space to 401,000 people globally, amounts to USD 47 billion. In Spain, the company has five spaces in Barcelona and four in Madrid, with new openings imminent.

Original story: Eje Prime

Translation/Summary: Carmel Drake

Montebalito’s Turnover Fell by 52% in 2018 & its Losses Amounted to -€2M

28 February 2019 – Eje Prime

Montebalito suffered in 2018. The group recorded losses amounting to €2 million last year, compared with the profit of €948,000 that it obtained in 2017. In parallel, the company’s turnover dropped by 52% to €7 million, according to reports filed by the company with Spain’s National Securities and Market Commission (CNMV).

The decrease in turnover occurred because there were no sales of singular assets in 2018 like there were in 2017, according to Montebalito. “If we strip out the effect of those sales, the group’s turnover rose by 32% YoY, driven primarily by an increase in the sales of developments located in Brazil and Chile”, he said.

Montebalito’s gross asset value (GAV) amounted to €135.7 million at the end of 2018, compared with €144.2 million last year. Similarly, the company has said that the total investment that it has to make for all of its projects in progress amounts to €32 million.

The firm’s investment volume in 2018 was €5.8 million, which represents a 51% increase compared to the previous year. That figure was justified by the acquisition of three plots: one in Madrid, one in Collado Villalba and one in Sevilla, in Isla de la Cartuja, for the construction of a hotel with 92 rooms.

Original story: Eje Prime 

Translation: Carmel Drake

Témpore Cut its Losses by 46% in 2018

27 February 2019 – Europa Press

Témpore, the rental home Socimi constituted by Sareb to provide an outlet for its residential portfolio, closed 2018 with a net loss of -€384,394. That figure represents a 46% reduction in the losses recorded a year earlier, according to reports from the firm, which is listed on the MAB.

The result also improves on the forecasts set out by the company in its listing prospectus by 13%.

Témpore’s portfolio of 2,249 homes and parking spaces generated revenues from rental income of €7.3 million last year, up by 1.3%, thanks to the renewal of contracts and the consequent increase in rents.

The increase in the firm’s housing stock, through a contribution from Sareb by a non-monetary capital increase, did not have any impact on last year’s accounts because it was not closed until the end of the period.

Nevertheless, it allowed Témpore to close the year with assets worth €339 million, a figure that almost doubles (+93%) the volume in the year of its constitution and, which, according to its data, consolidates the firm’s position as the third largest rental home company in the country.

Higher rents, lower defaults

In operational terms, the Socimi managed to reduce the default rate of its tenants to 4%, compared with 5.5% at the end of 2017.

Moreover, it achieved an average increase in rental prices of 12% for the new contracts it signed and its contract renewals (…).

Original story: Europa Press 

Translation: Carmel Drake

Sareb Sells its Socimi & its 3,300-Asset Portfolio to TPG

4 December 2018 – El Independiente

Sareb, the Company for the Management of Assets proceeding from the Restructuring of the Banking System, is closing the final details of the sale of its Socimi Tempore Properties to the private equity fund TPG.

The company, which is in the middle of a non-monetary capital increase amounting to €150 million and which will soon manage 3,300 real estate assets worth €325 million, received several offers at the end of November, including from the fund Apollo. In the end, the proposal from TPG has proved victorious, according to sources speaking to El Independiente.

The US group TPG, which has USD 94 billion in assets under management, is the shareholder of companies such as Spotify, Airbnb, Burger King, Lenovo, Ducati, Saxo Bank and Grohe, amongst others.

The so-called bad bank, in which the State holds a 45% stake, hopes to close this operation before the end of the year, in order to improve the appearance of its accounts, which will again feature losses.

The Tempore portfolio sold by Sareb is concentrated (80%) in the metropolitan areas of the major capitals, with the remainder located in regions with significant demand in the rental market, such as Valencia, Sevilla, Zaragoza, Málaga and Almería.

Azora is responsible for the management of the portfolio – it performs the administration and marketing activities for the assets directly. The company is led by the Director of Rentals at Sareb, Nicolás Díaz Saldaña. Before his arrival at Sareb, Saldaña was at the helm of the international department at Metrovacesa during the most complicated period of the real estate crisis.

Sareb is selling its Socimi at a time when these types of companies are in the Government’s spotlight, in light of the insistence of Podemos to toughen up the beneficial tax regime that has facilitated the expansion of the vehicles in recent years.

The Bank of Spain has also started to monitor the Socimis as a potential focus of instability for the financial sector and links the rise of these vehicles to the sharp increases in the prices of offices and commercial premises.

Original story: El Independiente (by Ana Antón)

Translation: Carmel Drake

Quabit Reassures Investors of Business as Usual Despite Falling Share Price

24 October 2018  – Eje Prime

Quabit is reassuring its investors. The property developer chaired and controlled by Félix Abánades has informed Spain’s National Securities and Market Commission (CNMV) that it does not think that the decrease in its share price in recent weeks is justified “given that it does not correspond to the current value or the fundamentals of the company”.

In this vein, the company has confirmed that it is working “intensely and with absolute normality”, in accordance with the objectives established in its strategic business plan, which will be completed in 2022.

The property developer has also explained that the legal battle over the mortgage tax is not affecting the company’s activity, either from the point of view of granting loans to the company or of signing credits with its customers. In any case, the company has announced that it has yet adopted any decision regarding the possibility of initiating claims.

Quabit finalised the first half of the year with profits, for the first time, of €1.14 million, compared with losses of €3.52 million recorded as at June 2017, according to a statement filed by the company with the CNMV in July. Similarly, in terms of turnover, the group tripled its revenues during the first half of the year to €9.15 million, three times the amount recorded during the 6 months to June 2017.

Abánades’ company currently has fourteen developments under construction in several areas of Spain, containing 909 homes in total, after recently starting work on a dozen residential projects.

Since 2017, Quabit has invested €193 million in land on which to build almost 4,850 homes, which means that it has already fulfilled 75% of the promotion target established in its plan for 2017-2022.

Original story: Eje Prime 

Translation: Carmel Drake

El Corte Inglés Values its Real Estate Assets at €17.1bn

25 September 2018 – Expansión

The properties owned by El Corte Inglés are worth €17.147 billion, according to the most recent valuation entrusted by the company to Tinsa for the end of its financial year, February 2018. That is the valuation that the company shared with investors interested in the placement of €600 million of its bonds.

This real estate portfolio, which according to previous reports was worth almost €17.0 billion, comprises 94 shopping centres, of which two are located in Portugal. These shopping centres account for 87% of the total value of the company’s assets. El Corte Inglés warns investors that this valuation may have to be adjusted in the future, given the illiquid nature of its real estate assets.

Tinsa’s study segments the distribution company’s shopping centres by value. Two of them are worth more than €500 million each, and another two are worth between €400 million and €500 million. The bulk of the centres, 45 to be precise, have a valuation of between €100 million and €200 million. Six of the centres are worth between €300 million and €400 million.

32% of the value of the real estate assets of El Corte Inglés are located in Madrid, whilst 10% are located in Barcelona. Málaga and Valencia are home to 6% each; Sevilla another 4%; and the other Spanish regions, the remaining 42%.

The bulk of the valuation of El Corte Inglés’s real estate portfolio, €14.964 million, corresponds to its stores and shopping centres

The company highlights that it owns the largest portfolio of real estate assets of any of the companies in its sector in Europe. The total surface area of its real estate assets spans 3,994 million m2.

This independent valuation entrusted to Tinsa does not include the real estate operations carried out by El Corte Inglés since February of this year. In August, the company sold two shopping centres located in Madrid (Princesa) and Bilbao (Gran Vía) to Corpfin Capital Real Estate for around €100 million.

Quarterly results

The results of El Corte Inglés remained practically stable YoY during the first quarter of its financial year, which finished at the end of May. According to the unaudited provisional accounts, the company lost €50 million during that quarter, compared with losses of €51 million during the same period in 2017.

The company’s sales grew slightly, with net revenues of €3.417 billion, just above the €3.413 billion recorded during its first quarter last year.

According to the unaudited provisional data at the end of July 2018, corresponding to the first five months of the financial year, sales fell by 0.1% YoY and EBITDA decreased by 0.6%.

This result is explained by a decrease in revenues in the retail and technological departments, which were partially offset by an increase in sales in its travel agency and insurance departments.

El Corte Inglés explains to investors interested in its bonds that sales of clothing were hit during that period due the unusual climate this year (…).

Original story: Expansión (by A. Roa & D. Badia)

Translation: Carmel Drake