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

French Fund Corum Will Invest €450M-€500M In Europe In 2017

8 March 2017 – Expansión

The real estate fund manager Corum Asset Management has placed its focus on Spain. The firm, created in 2011 and with offices in Paris and Amsterdam, has closed 2016 with a record investment figure of €328 million.

In the case of Spain, the manager chose the market to carry out its first operation outside of France, acquiring its first asset in 2013: a retail property in Tarragona, which is leased to MediaMarkt.

Three years later, in May last year, Corum sold that asset to a fund managed by Ciloger for €9.43 million. “2016 was a record year in terms of transactions, with a deal volume amounting to €360 million, of which €328 million involved acquisitions. In addition, we made our first sale in an overseas market in 2016, in this case in Spain, where we achieved a significant return”, explained Philipp Cervesa, Head of Investments at Corum AM.

Besides that sale, the French manager closed three purchases amounting to €41.4 million in Spain, involving logistics assets, during the year. Specifically, in April, it acquired two platforms in Gerona and Guadalajara, with a combined surface area of 35,670 m2. Three months later, Corum AM paid more than €24.8 million for a logistics building leased to the company Trabis. “Our strategy is to bet on real estate cycles. We are investing in Spain because it offers good diversification and is a very dynamic market”, said Cervesi.

Both operations achieved a return of around 7.6%. “We invested heavily between 2013 and 2014, when the market fell, and thanks to that, we have undertaken some good deals, such as the sale of the property leased to MediaMarkt, which we sold last year for a hefty profit”. A high return that the manager forecasts it will maintain in 2017. “We are looking for assets with long-term lease contracts and high returns, of around 7%, he added.

This year, the manager, which invests directly through an Asset Management fund, has set itself the objective of increasing its portfolio to €500 million. “Our strategy for 2017 is to invest between €450 million and €500 million in the Eurozone. We have not set ourselves any country limits, which means that we could buy an unlimited amount in Spain”, explained the Head of the fund.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Domo Socimi: An Example Of The Boom In Residential Business

11 February 2016 – Expansion

An example of the boom in residential business and new opportunities offered by the development and promotion of housing is Domo Socimi. This company, incorporated in June 2015, is presented as the first in Spain that creates value by offering investors the opportunity to participate and capture the profitability of the entire real estate cycle from the purchase of land, through construction, rental and the subsequent sale. Domo Socimi, with a goal of attracting 50 million initial capital and planned increases up to 250 million, plans to apply for incorporation to the Alternative Investment Market (MAB, in its Spanish acronym) during the first half to provide liquidity for investment. Armabex acts as global coordinator of the transaction and registered advisor for its incorporation to the stock market.

Original story: Expansion

Translation: Aura Ree