Tag: property developer

British Fund Helikon Acquires a 3% Stake in Aedas

The stake of the manager, which has joined several other international funds that control more than 5% of the property developer, is valued at 21.3 million euros.

The British fund Helikon Investment has acquired a 3.05% stake in the share capital of Aedas Homes, a percentage valued at €21.3 million according to the current market price of the property developer.

Helikon, a recently created firm, directly owns a portfolio of 1,462 million shares in Aedas, as registered in the records of the National Securities Market Commission (CNMV).

Lar, Aedas and Árima Invest More than €5 Million in the Stock Market to Curb the Covid Crisis

The Socimis Lar España and Árima, and the property developer Aedas Homes have boosted their share buyback programs following the outbreak of the health crisis.

It is just one of the measures implemented by the real estate companies as part of their anti-Covid plans. Several of the large listed companies in the sector have resorted to expanding their treasury stock to curb the collapse suffered by the stock markets worldwide, and, specifically, in Spain.

In the case of share purchases, the property developer Aedas Homes and the Socimis Lar España and Árima Real Estate have opted for this formula, with programs for the acquisition of their own securities that have totalled more than €5 million in the two months of the pandemic to date.

Neinor Earned 74% More in Q1 and Signed 64 Pre-Sales During Lockdown in April

The property developer generated a profit of €3.9 million between January and March from revenues of €50.5 million. In April, it closed half as many pre-sales as planned.

The property developer Neinor Homes managed to close the pre-sales of 64 homes off-plan during April, a month that was marked by the closure of its sales offices due to the State of Emergency. Prior to the coronavirus crisis, the managers of the real estate company had set a target of twice that figure for the month. During the three months to March, the company pre-sold 353 homes compared to 306 in the same period a year earlier.

The CEO of the company, Borja García-Egotxeaga, revealed this information at the results presentation for the first quarter of 2020. During Q1, the firm obtained a profit of €3.9 million, up by 74% compared to the same period a year earlier, from revenues of €50.5 million, down by 17% YoY.

Gestilar “Landowners are Making Payments more Flexible”

Raúl Guerrero, CEO of Gestilar, explains that there is less pressure in the market, which is allowing the negotiation of operations to purchase land and other assets.

Raúl Guerrero, CEO of Gestilar, explains in an interview with Brainsrenews, that landowners are making payments on land more flexible in the face of the tougher market.

Raúl Guerrero is the CEO of Gestilar, a company that was created 30 years ago by a stalwart of the real estate sector, Javier García-Válcarcel, a strong defender of the association movement. He was also the founder of Asprima, the Madrilenian association of property developers, and served as its President for many years. Moreover, he promoted the national activity of the Spanish property developers’ association, APCE. After 25 years as a specialist in land management, his son, Javier García-Valcárcel took over the reins in 2009 and has since transformed the company. As such, Gestilar has gone from being a property developer focused on the development of cooperative homes, to a company in the mid-housing segment that is very active in managing alliances with funds to provide investment.

Amenabar Joins Forces with Ares to Invest €110M in Construction of 400 Build-to-Rent Homes

17 January 2020 – El Confidencial

Amenabar Promociones has signed the largest build-to-rent operation to date in Spain with the fund Ares. Together, they are going to invest more than €110 million in the construction of more than 400 rental homes in Valdebebas, Madrid.

The homes are going to be built on a plot that Amenabar acquired at the end of 2019 from Ferrovial for €56 million. The Basque, family-owned, property developer made its debut in Madrid’s residential market five years ago and handed over more than 1,000 new homes last year. In 2020, it plans to increase that figure to almost 1,600, a volume that it hopes to maintain for the next couple of years, which will see it outperform many of its listed competitors.

With this operation, Amenabar is following in the footsteps of companies such as Aedas, Metrovacesa, Quabit, Momentum and Urbas, which have all committed to projects in the build to rent sector in recent months.

Meanwhile, Ares has become one of the most active funds in this segment of the market. For example, Aedas is going to build 500 rental homes for Ares (€70 million); and Metrovacesa is going to construct another 121 homes for the fund (€29 million).

The appeal of the segment lies in the attractive returns that rental homes are currently generating. In Q2 2019, the average gross yield on rental homes across Spain amounted to 3.9%, according to official data from the Bank of Spain, which is much higher than the return on bonds and other prime real estate assets, such as offices and high street premises. Moreover, various cities and neighbourhoods offer even higher returns e.g. Madrid Capital (5.06%) and the Villaverde neighbourhood (8.43%).

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

Neinor Reports Profits of €90M, Exceeding its Own Forecast by 30%

9 January 2020 – El Confidencial

Nine months after issuing a profit warning, announcing a new roadmap and appointing a new CEO (Borja García-Egotxeaga (pictured below)), Neinor has reported profits of €90 million, up by 30% compared to the revised forecasts of €70 million.

The property developer handed over 1,269 finished homes last year, within its forecast range of between 1,200 and 1,700, and has another 200 ready to hand over this year. It plans to hand over half of those this month (January) and the rest during the course of the year, depending on its margins.

2020 is going to be a critical year given the looming change in the economic cycle, with stabilisation expected in terms of sales and prices. In 2018, prices rose by 8%; in 2019, they increased by 6-7%; and in 2020, the firm’s objective is to sell 1,700 homes and achieve a price increase of 3.5-4%. Thanks to these rises, the group’s margin amounted to 30% at the end of 2019.

By contrast, Neinor has not managed to fulfil its land purchase plan to date, although it expects to achieve its ambitious forecasts for 2020 when it aims to invest €110 million in total.

The property developer’s two largest shareholders, Orion (28%) and Adar are both keen to support the growth of the company and benefit from the consequent recovery of its share price.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Aedas Homes Acquires Plot of Land in Zaragoza for 198-Flat Development

15 July 2019 – Richard D. K. Turner

Aedas Homes has initiated operations in Zaragoza, acquiring a plot of land in the neighbourhood of the AVE train station. The purchase from the public company Zaragoza Alta Velocidad (ZAV) involves an investment of 19.3 million euros and will result in 198 new homes.

The firm currently has 4,232 homes one sale throughout Spain and enough land to build another 15,000. Aedas also acquired more land in area, though it declined to reveal details.

The plot the firm acquired is located between Delicias station and Avenida Navarra. The asset’s surface area is 5,821 square meters, with a buildable area of 27,956 m2. Zoning in the area allows for the construction of four buildings, with a maximum height of 19 floors.

Original Story: Heraldo – Jorge Alonso

Árqura Homes: Sareb Launches a Property Developer to Build 17,000 Homes

11 June 2019 – Europa Press

Sareb has constituted its own property developer, Árqura Homes, through which it plans to build and sell 17,000 new homes over the next decade with an investment of €2.2 billion. The new entity looks set to rival the country’s main listed property developers on the basis of its land portfolio and investment plans.

Árqura has been constituted following the transfer of land and developments underway worth €811 million. 56% of its portfolio corresponds to just over 2 million m2 of land, 41% corresponds to developments in progress and the remaining 3% are developments that have been suspended.

The bad bank led by Jaime Echegoyen (pictured above) is going to team up with Värde for this initiative, which will hold 10% of Árqura’s share capital. Moreover, Aelca, a real estate company controlled by the US fund, will be responsible for the management and marketing of the new homes.

This operation represents Sareb’s second foray into the real estate market through the launch of its own firm after it launched the Socimi Témpore at the end of 2017. That firm became the third largest rental home company in the country and is currently on the verge of being sold to the fund TPG.

In the case of Árqura, it hopes to reach its cruising speed in terms of development between 2021 and 2022 and of homes deliveries between 2023 and 2024. Its homes will be distributed across 15 regions, although more than half (58%) will be concentrated in the most sought-after regions of the Community of Madrid, Cataluña and Andalucía.

Original story: Europa Press

Translation/Summary: Carmel Drake

Patron Capital Team Up with Property Developers to Invest €60M in the Residential Sector

10 June 2019 – Eje Prime

Patron Capital is on the hunt for property developers to team up with to invest up to €60 million in the residential sector in Spain over the medium term.

In this vein, the company has already signed its first two joint ventures through which it plans to invest €30 million. The names of the property developers in this case have not been revealed.

The fund’s investment formula through joint ventures sees it contribute 80% of the capital, with the remaining 20% provided by the property developers.

The company currently has eight investment vehicles in Spain, which invest in tourist apartments, retail parks and office buildings. The agreements with the two local property developers will be its first foray into the residential sector.

Original story: Eje Prime

Translation/Summary: Carmel Drake

ARC Homes Invests €14M in a New Development in Santa Coloma de Gramanet

3 June 2019 – La Vanguardia

The property developer ARC Homes is going to invest €14 million in the construction of a new housing development in Santa Coloma de Gramanet (Barcelona).

At its current investment pace, ARC expects to achieve a turnover of €85 million by 2020. The property developer is currently looking for new locations for development in Cataluña, the País Vasco, Navarra, La Rioja, Madrid, Valladolid, Valencia and Ibiza.

Original story: La Vanguardia 

Translation/Summary: Carmel Drake