26 October 2015 – Expansión
During the six months to June, the so-called ‘bad bank’ has completed six real estate developments that were started last year, adding to the total already completed of 24, which means that the company has now completed and put up for sale 618 new homes in the last few years.
Sareb will invest €5.2 million to complete the construction of 11 developments, reactivated during the first half of the year, which will enable it to put 337 new homes on the market. The construction work is expected to begin within the next few months.
At the moment, the company is analysing the feasibility of reviving other suspended projects during the remainder of 2015, according to its activity report for the first half of the year.
Meanwhile, during the first half of the year, the company approved the development of 13 plots of land, involving 780 homes in total, in the autonomous regions of Andalucía, Valencia, Cataluña, Galicia and Madrid. Whilst the pre-sale phase started in September, construction is expected to begin at the end of this year.
To identify the development alternatives, Sareb will have to take into account the ownership of the land, the level of investment required and its own role or level of involvement in each initiative. In this sense, the company has recently signed joint venture agreements with several property developers. Moreover, it is working on a set of plots in Madrid, where it intends to construct developments through similar partnerships.
During the first half of the year, the company sold 5,345 properties to retail clients, at a rate of 30 homes per day, compared with the average rate of 42 recorded in 2014.
Moreover, it has experienced an increase in the level of interest for plots of land, whose sales have increased by 3.6x, “however, the economic volume is not significant yet” in terms of the company’s total turnover.
Original story: Expansión
Translation: Carmel Drake