Neinor Gains Approval to Begin Work on €86-Million Sky Homes Development in Valencia

24 September 2019 – Neinor Homes has obtained approval for its Sky Homes mega-development in Valencia. The new complex will consist of four residential towers with twenty floors each, for a a total of 417 flats. Neinor plans to invest 86 million euros in the development, including the acquisition of the land.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

CaixaBank Creates a Subsidiary to Finance Loans to Property Developers

17 June 2019 – Eje Prime

CaixaBank has created a new subsidiary to finance loans to property developers. The entity will operate under the brand CaixaBank Real Estate&Homes and will seek stable agreements with established property developers such as Neinor, Aedas Homes and Vía Célere, amongst others.

In 2018, CaixaBank financed 581 real estate projects lending €2.6 billion in total, up by 13% YoY. Moreover, 84% of the developments financed by the bank last year corresponded to projects involving less than 50 homes.

Original story: Eje Prime

Translation/Summary: Carmel Drake

Insur Delays the Scheduled Delivery of 650 Homes by 2 Years

3 June 2019 -Eje Prime

Insur has announced that it is delaying the scheduled delivery of more than 650 homes by two years. However, the real estate group claims that the delays “are not significant” and are due to external factors, such as the entry into force of the mortgage law, the strategy replanning of the company and “the redesign of plans to reflect the demands of clients”.

Nevertheless, the news follows the announcement of similar delays, and profit warnings, by rivals such as Neinor, Metrovacesa and Quabit, and so the market is understandably nervous about this latest news.

In the case of Insur, the company is delaying the delivery of more than 650 homes in 11 different promotions, including the BA-2 and BA-3 developments in Entrenúcleos, located in the municipal district of Dos Hermanas in Sevilla.

Nevertheless, the property developer claims that the delay in the scheduled delivery of its homes has nothing to do with Neinor’s profit warning and assures that the company’s analysts are not worried.

Currently, Insur has 275 homes under construction and 1,625 properties in developments through joint businesses. It also owns a portfolio of land spanning 95,000 m2 on which to build another 880 homes and has long-term purchase options over twelve plots with a buildability of 208,000 m2.

Original story: Eje Prime (by Marta Casado Pla)

Translation/Summary: Carmel Drake

Sabadell’s Board Evaluates 3 Offers Amounting to c. €850M For its Property Developer

28 May 2019 – El Confidencial

On Monday, Banco Sabadell received three binding offers for its property developer, Sabadell Desarrollos Inmobiliarios, from the funds Cerberus, Oaktree and a third unknown candidate, amounting to between €800 million and €900 million.

The board of directors of the Catalan entity chaired by Josep Oliu now needs to decide whether to accept one of them and thereby pave the way for the creation of a new major player in the Spanish property developer sector to compete alongside the likes of Neinor, Metrovacesa, Vía Célere and Aedas.

Oaktree has been the favourite in the bidding for the last few months given its good relationship with Sabadell and with the property developer itself, with which it already operates at least one joint venture. It would represent the US investor’s first operation of its kind in Spain, where it currently has a small platform with just 20 employees.

Nevertheless, Cerberus has been gaining ground. Unlike Oaktree, the US giant already has a property development platform in Spain, Inmoglacier, to which it wants to supply new land (which SDin owns). Cerberus could also benefit from synergies between the two firms.

Meanwhile, the identity of the third candidate remains confidential, but possible contenders include Habitat (Bain Capital), Aedas and the Canadian fund CPPIB, which were all reported to be evaluating the purchase during the preliminary phase.

Initially, Sabadell was hoping to receive more than €1 billion for its property developer, but following uncertainty in the sector in recent months and the sale of several assets, it will have to accept a more modest price if a sale is to be agreed.

Original story: El Confidencial (by Jorge Zuloaga)

Translation/Summary: Carmel Drake

Quabit Buys ‘Rayet Construcción’ for €13.1M

16 May 2019 – Eje Prime

Quabit has acquired 83% of the shares in the construction company Rayet Construcción for €13.1 million as a means of “reducing uncertainties in terms of the costs and timeframes of its construction projects”, according to a statement issued by the company to Spain’s National Securities and Markets Commission (CNMV).

The company reported its results on Wednesday and announced a 5%-10% decrease in turnover due to delays in the delivery of its business plan, whereby following in the footsteps of its rivals Neinor and Metrovacesa, which have also revised down their results in recent months.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Habitat to Invest €120M+ in More than 20 Developments in 2019

9 May 2019 – Eje Prime

Last year, Habitat Inmobiliaria, the property developer owned by Bain Capital invested €120 million in the purchase of 27 plots across Spain. The plan is to repeat that activity in 2019 with the launch of twenty developments and the commencement of building work at 25 sites.

So far this year, the firm has already purchased six plots for €52 million, has launched eleven developments comprising 1,207 homes. It has also started building work at 9 sites comprising 800 units.

The company’s medium-term plan is to invest €500 million in land purchases between 2018 and 2021 in order to achieve a cruising speed of 2,000 new home deliveries per year from 2021 onwards.

In parallel, the company is considering industrialising two of its developments, although its CEO, José Carlos Saz, is somewhat sceptical about the industrialisation of construction.

In total in 2019, Habitat expects to hand over around 300 homes in 2019, with that figure rising slightly in 2020. Such forecasts are now under the spotlight after Neinor disappointed the market by revising downwards its expected home deliveries in April.

Original story: Eje Prime (by Marta Casado Pla)

Translation/Summary: Carmel Drake

Julius Baer Acquires 3% of Metrovacesa and 8.14% of Neinor

17 April 2019 – Voz Pópuli

The Swiss bank Julius Baer has been increasing its stakes in the main Spanish property developers. The company now owns 3% of Metrovacesa through its Sicav Kairos and 8.14% of Neinor Homes, of which 6.55% is held indirectly.

As such, the Swiss bank is the second largest shareholder of the property developer created by Lone Star, behind the Israeli firm Adar Capital, which controls 28.6%.

The share purchase by Julius Baer comes a week after Neinor’s board approved the replacement of Juan Velayos as its CEO, in an environment of maximum uncertainty in terms of the achievability of the objectives set by the Spanish property developer.

Neinor’s share price has fallen by 17% so far this year, and as such, each share is worth around €10, well below its stock market debut price of €16.98.

Nevertheless, the group’s results for 2018 were strong, with revenues of €382 million, up by 70% YoY and an EBITDA of €56 million, which was almost seven times higher than in the previous year. Moreover, the property developer has already pre-sold 80% of the units it plans to deliver in 2019 and 30% of those due in 2020.

Original story: Voz Pópuli (by David Cabrera)

Translation/Summary: Carmel Drake

Aedas Revolutionises the Property Development Sector by Building 500 Turnkey Homes for Ares

12 April 2019 – El Confidencial

Aedas Homes has decided to launch a new line of business by building complete housing developments for other companies. In this way, the listed property developer hopes to generate value from its production over-capacity; it anticipates recording revenues of around €70 million from the initiative.

In this vein, the company led by David Martínez has reached an agreement with the fund Ares to build 500 homes in its name in three different locations: Torrejón de Ardoz, Alcalá de Henares and El Cañaveral (all in Madrid).

This is the largest turnkey project in the sector since the outbreak of the real estate crisis, a decade ago and as such, represents a real milestone.

The three largest listed property developers in Spain, Neinor, Aedas and Metrovacesa, are all living by the famous mantra “reinvent yourself or die”. As such, they are expanding their operations as they seek to actually generate the high turnover figures that they promised when they made their stock market debuts.

With this latest announcement, Aedas is sending a clear message to its competitors. It has over-capacity in its production model, which means that it can handle turnkey projects on a large scale, as well as deliver the roadmap that it is already committed to.

With the additional 500 homes from this project, Aedas Homes could end the year with more than 3,000 units launched, compared with the 2,580 initially planned for the year.

Meanwhile, Ares Capital is immersed in its commitment to the Spanish real estate market, with a particular focus on the residential segment, with homes both for sale and for rent.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Neinor Revises its Profit Forecast for 2019 Down by 50%

9 April 2019 – Expansión

Neinor has a new CEO and is revising down its profit and construction forecasts. Borja García-Egotxeaga (pictured below), Operations Director at the property developer until now, will take over from Juan Velayos, and will oversee a new-look strategic plan.

The revised forecasts involve the firm delivering between 1,200 and 1,700 homes in 2019, compared with the 2,000 units initially planned, and achieving an EBITDA of €70 million, down by 53% compared to the initial projection of €150 million.

Neinor has also cut its forecasts for 2020, with a revised EBITDA of €100 million for next year compared with the initial forecast of €300 million, as well as new home deliveries of between 1,700 and 2,400 units, down from 4,000.

The company underlined its intention to remunerate its shareholders with dividend distributions of €200 million until 2022 and to repurchase up to €100 million in shares to offset the decrease in its share price.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Habitat’s Land Portfolio Now Spans 1 million m2 with Capacity to Build 10,000 Homes

9 March 2019 – Expansión

The property developer Habitat now owns more than 1 million m2 of land after investing €121 million last year to expand its portfolio. As such, the firm led by José Carlos Saz (pictured below) has the capacity to build around 10,000 homes. Specifically, the firm backed by Bain Capital acquired 27 plots last year on which to build around 2,500 homes. 5% of those plots were non-buildable (in the process of being approved for construction).

The company expects to reach cruising speed with the delivery of 2,000 homes per year from 2021 onwards. Last year, it handed over 270 homes across 4 developments in Barcelona, Málaga and Madrid, to generate turnover of €89 million, EBITDA of €1.83 million and a net profit of €250,000. The company plans to invest €500 million in land purchases until 2021, financed by Bain.

Moreover, like its competitors Neinor, Aedas and Metrovacesa, Habitat is also considering entering the rental home sector and may even begin to build developments for Socimis.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake