Quabit, Idealista, Servihabitat…the First Redundancies Hit the Real Estate Sector

Real estate companies have made the first adjustments to their workforces due to coronavirus. Firms such as Quabit, Servihabitat and construction companies have raised ERTEs.

The coronavirus pandemic has begun to cause real estate companies to make adjustments. With the biggest drop in GDP in the historical series, an unemployment level of 14.4% in the first quarter alone, and some rather dismal economic forecasts for this year, companies in the sector have begun to raise employment regulation files for their workforces.

Such is the case of Quabit. The property developer led by Félix Abánades is finalising the presentation of a temporary employment regulation file (ERTE) that will affect 66% of its workforce, according to reports from Brainsre.news last Thursday.

Quabit Negotiates an ERTE for 66% of its Workforce

The property developer is negotiating a temporary employment regulation file (ERTE) with its workers that will affect all of its delegations in Madrid, Guadalajara, Malaga and Valencia.

These are the first employees of a large Spanish real estate company whose working conditions will be affected following the outbreak of the coronavirus crisis. Quabit, the residential property developer led by Félix Abánades, has presented its workers with a temporary employment regulation file (ERTE), which will affect 66% of the workforce, as confirmed by the company to the National Securities Market Commission (CNMV) after it revealed the news to Brainsre.news.

Quabit currently has 91 employees distributed across its offices in Madrid, Guadalajara, Malaga and Valencia.

Quabit Extends its Payment Protection Insurance to those Affected by Coronavirus

The real estate company’s payment protection insurance will not apply to exclusions from the pandemic.

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

Slim Acquires 3% of Quabit for €4.8M

7 January 2020 – El Confidencial

The Mexican businessman Carlos Slim has acquired 3% of the share capital of Quabit for €4.8 million through his investment company Inversora Carso to become the property developer’s sixth-largest shareholder.

Quabit’s share price rose by 5.15% to €1.14 following the announcement of the purchase. The property developer’s president Félix Abánades is the largest investor with a 20% stake, followed by the Swiss manager Julius Baer (8.7%), the investor Francisco García Paramés (5%), the fund Gescooperativo (3.5%) and the Malagan property developer Sankar Real Estate (3.3%).

Slim appears to be redoubling his commitment to the Spanish real estate market, given that he already holds stakes in FCC and Realia, which currently have 800 and 750 homes under construction, respectively, along with 4.4 million m2 and 5.8 million m2 of land ripe for development, respectively.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Quabit Invests in New Sectors in Preparation for a Change in the Market Cycle

24 October 2019 – Félix Abánades, the head of Quabit Inmobiliaria, has been preparing his firm for a new cycle in the real estate market. The firm recently began investing in the residential rental market, acquired a construction company (Rayet Construcción), placed a portfolio of 1,300 homes currently under construction on sale and announced that it would invest in the cooperative management sector. In the latter, the firm is looking to develop a portfolio of approximately 1,000-1,500 homes, within two or three years, with a turnover of around 175 million euros, through its Style Cooperatives initiative.

Quabit’s entry into the cooperative management market comes at a time when the sector is suddenly back in vogue. Cooperatives are typically able to offer higher prices for developable land than comparable developers.  The firm is adding the new line of business to its existing operations in land and residential development, along with its foray into the rental housing market.

Increasing construction costs and the possibility of a change in the market cycle are leading Quabit and other developers to reduce their earnings forecasts along with estimates of the number of homes it will deliver in the coming years.

Original Story: El Confidencial – Elena Sanz

Adaptation/Translation: Richard D. K. Turner

Quabit Finalises Sale of Rayet Construcción for €14.3 Million

9 October 2019 Quabit has finalised its acquisition of 82.9% of the share capital of Rayet Construcción, a construction company controlled by Félix Abánades, for 14.3 million euros. Quabit is thought to be taking control of the construction in response to tight demand and to guarantee the construction and delivery of its homes.

The president of Rayet, Félix Abánades, will thereby raise his stake in Quabit from 19.1% to 20.3%, as part of the payment will be made with shares in the developer. The rest of the payment will be made in cash.

Original Story: Valencia Plaza

Photo: Eva Máñez

Adaptation/Translation: Richard D. K. Turner

Egusa Sells 52,000 M2 of Land To Quabit in Valencia for €26.3 Million

16 September 2019 – A state-owned company, Egusa, in Alboraya, Valencia, will transfer the lands of Port Saplaya to the developer Quabit to settle debts of 26.3 million euros. The 52,000 square meters of land is enough to build 500 new homes.

The beachfront property has an excellent location and good medium-term development capacity. Quabit plans to reactivate the project for the property and begin development with three years. The projects will include common shopping areas and gardens.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Quabit Acquires Land in La Pobla de Vallbona for 100-Home Development

15 July 2019 – Richard D. K. Turner

Quabit has acquired a plot with 11,500 buildable square meters of land, where it is planning to build 100 new homes. At the same time, the listed developer has also acquired developable land in Madrid, Guadalajara and Malaga. The developer’s total investment of 21.7 million euros would be enough to build almost 1,000 new homes.

Seven of the plots of land are located in the provinces of Madrid, Guadalajara, and Valencia. Those lands have a buildable area of almost 60,000 square meters, allowing for the construction of about 550 new homes. In addition, it has acquired a building to rehabilitate with 57 homes and more than 5,760 square meters.

Original Story: Valencia Plaza

Photo: Eva Máñez

Quabit Finalises Acquisition of Enough Land to Develop Another 1,000 Homes

10 July 2019 – Richard D. K. Turner

Quabit, a listed developer controlled by the Rayet group, announced that it had acquired 105,000 square meters of buildable land, in a total investment of €21.7 million. The seven plots of land are located in the provinces of Madrid, Guadalajara, and Valencia, and are sufficient to build 550 new homes.

Next to these lands, the firm also acquired another 42,000 square meters of land, enough for 380 homes. Finally, Quabit bought a 5,760-m2 building, which it intends to renovate for another 57 flats.

Original Story: Expansion – Rocío Ruiz