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

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

Spain’s Property Developers Glimpse the First Signs of a Moderation in Prices

29 May 2019 – Expansión

Yesterday, several of the largest property developers in Spain met for a Medcap roundtable event moderated by Deloitte to discuss the outlook for the residential market.

Specifically, representatives from Metrovacesa, Aedas, Quabit, Insur and Lar participated in the discussions, during which they observed that house prices in Spain are starting to moderate in some of the more mature markets, although they acknowledged that there are still many secondary cities where the new (growth) cycle is just beginning.

In this context, the representatives identified a number of focuses and challenges facing the sector, namely:

Licences: All of the property developers are pushing for great agility from the public administrations when it comes to the granting of construction permits.

Construction: The labour shortage in the construction sector is pushing up prices and leading to delays in project finishes.

Concentration: Property developers are larger and more professionalised now than before the crisis; they require critical mass to be resilient to real estate cycles.

Industrialisation: Prefabricated homes allow construction periods to be shortened and for greater control over the processes.

Access: Young people are finding it increasingly difficult to afford to buy a home.

Overall, the experts consider that the residential sector is still immersed in the early stages of the new cycle, but only time will tell whether they are right.

Original story: Expansión (by Rebeca Arroyo)

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

Quabit Issues 4-Year Bonds Amounting to €20M

29 March 2019 – Valencia Plaza

The property developer Quabit Inmobiliaria has issued bonds amounting to €20 million through its wholly owned subsidiary Quabit Finance. The bonds have a maturity of 4 years and a coupon of 8.25%, which will be paid annually.

The success of the placement represents a great boost to the company’s strategy and confirms investors’ confidence in its management capacity. The funds raised will be used to undertake new investments, finance new projects and whereby continue with the firm’s growth and expansion plan.

Original story: Valencia Plaza

Translation/Summary: Carmel Drake

Quabit’s Revenues Soared in 2018, but its Profits Fell by 53%

28 February 2019 – Eje Prime

Quabit’s revenues soared but its profits decreased. The real estate company closed 2018 with a net profit of €6.7 million, down by 53% compared to the previous year, when it reached €14.3 million. The company attributes that reduction to the “activation of tax credits in 2017, amounting to €26 million”, according to reports in a relevant fact submitted to Spain’s National Securities and Exchange Commission (CNMV).

The firm’s EBITDA also deteriorated, with losses of €25.3 million, a figure that quadruples the loss recorded a year earlier when it amounted to €7.3 million. “The negative impact in terms of EBITDA is due to the extraordinary effect of the valuation corrections on the land and the lower discounts on the debt”, said the company in a statement about its results.

In terms of revenues, they soared last year to reach €39.6 million, whereby multiplying the figure from the previous year (€5.7 million) eight-fold. At the end of the year, the gross value of its assets amounted to €506 million, 27% higher than at the end of the previous year. That growth was attributable to the company’s new investments and the revaluation of its portfolio.

In terms of its portfolio, Quabit handed over 190 homes in 2018 and also invested in its land bank, increasing it by around €180 million since 2017. It currently has around 4,000 homes in different phases of development and is working on the launch of new projects included in its business plan for 2018-2022.

Original story: Eje Prime

Translation: Carmel Drake