Sareb Teams Up With RE Companies To Build 1,100 Homes

28 September 2016 – Diario Vasco

Sareb has chosen 19 plots of land from its portfolio, which have the capacity to house around 1,100 homes, for which it will team up with a dozen companies from the real estate sector to develop projects under both co-investment schemes as well as through direct sales.

Sareb explained in a statement published on Tuesday that this project forms part of the strategy that it is pursuing to revalue its assets and better execute it divestment mandate.

In this case, Sareb’s initiative is being driven in conjunction with several selected companies: Grupo Brial (with 4 developments), Construcciones Amenabar (3), Grupo Bertolín (3), Inmobiliaria del Sur (1), Aldesa (1), Aelca (3), Desarrollos y Construcciones Fomex (1), Atica (1), Monthisa (1) and Sequoia Desarrollos Inmobiliarios (1).

According to Sareb, the winning property developers were chosen after a competitive process was held, in which 76 candidates participated. It added that it has been supported in the selection process by Irea as well as by three of its management companies (Altamira, Servihabitat and Solvia).

The 19 plots of land that Sareb has chosen from its portfolio have a combined buildable surface area that the bad bank estimates has the capacity to house around 1,100 homes.

The plots of land in this operation are located in Andalucía (4), Madrid (4), Cataluña (3), Baleares (2), Aragón (2), Comunidad Valenciana (2), Asturias (1) and Castilla y León (1).

Sareb explained in its statement that most of the offers from the selected companies reflect a co-investment model, whereby the bad bank will retain ownership of the asset, and the property developers will contribute some of the investment funds and take responsibility for the construction the properties.

In five cases, Sareb has opted for a “financial swap” to maximise the economic return. It explained that this alternative involves the property developer partners buying the assets outright.

The price that Sareb is receiving for the land will be complemented in the future by a percentage of revenues from the sale of the homes.

The construction works are expected to be completed from 2018 onwards, depending on their characteristics.

Sareb is evaluating offers for other plots of land, which, if they go ahead, would further expand the perimeter of the co-investment initiative.

“The plots of land and projects that have been put on the market have been selected in accordance with criteria of efficiency, commercial suitability and the technical quality of the proposals”, said the Director of Direct Management at Sareb, Juan Ramón Dios.

In 2015, Sareb announced the development of 13 plots of land, some of which are now being sold.

Morever, since its creation, Sareb has completed 46 developments that it received in an unfinished state, and as a result, has already put around 1,000 new homes on the market.

Original story: Diario Vasco

Translation: Carmel Drake

Lar España Doubles Its Profits In H1 To €43.3M

13 September 2016 – El Economista

Lar España Real Estate recorded a net profit of €43.32 million during the first half of this year, which represents a two-fold increase compared with a year ago, when its profit amounted to €19.34 million, according to reports from the Socimi.

At the end of June, the company chaired by José Luis del Valle, owned a portfolio of properties amounting to €1,050 million. That amount is equivalent almost twice the value of its assets a year earlier and represents a revaluation of 9.3% with respect to the amount paid to acquire them.

The investment made to incorporate new assets into the portfolio of buildings and improvements that, according to the firm, has been performed under its management, boosted the Socimi’s rental income by 9%, to €26.9 million.

In turn, the gross operating profit (EBITDA) amounted to €23.80 million between January and June, whereby tripling the €8.30 million recorded during the same period in 2015.

The retail group Carrefour, the textile company Inditex, Media Markt and the public engineering company Ineca are Lar’s largest four tenants, given that they generate between 5.1% and 8.1% of their total rental income.

Reduce debt

In terms of financing, Lar España ratified its commitment to continue advancing towards its dual aim of reducing its cost of debt, which amounted to €456 million at the end of June, and extending its average maturity period, which currently amounts to almost seven years, on average.

The Chairman of the Socimi thinks that the half-yearly accounts will allow the company “to successfully tackle its commitments to shareholders”.

Original story: El Economista

Translation: Carmel Drake

Colonial To Pay Dividends Again After 10 Years

23 February 2016 – El Mundo

The Group generated profits of €415 million in 2015, thanks to the revaluation of its buildings.

Its profits in 2015 were 15.6% lower than in 2014, when the figures reflected the positive accounting effect of the deconsolidation of Asentia.

After 10 years, the Colonial Group is going to distribute dividends once again, distributed from its results for the financial year 2015. The real estate company will allocate around €47 million for payment to its shareholders, 59% of whom are individual investors. The rest of the Group’s capital is held by the Villar Mir Group (15%), the Qatar Investment Authority (13%) and Aguila LTD (7%), a fund owned by (the Colombian group) Santo Domingo (…).

Colonial’s share price closed 2015 at €0.62, after improving by 29% during the year. Shareholders will receive a dividend of €0.015 per share. The company, led by Juan José Brugera, generated a net profit of €415 million last year, after receiving revenues from rental income of €231 million, up by 9% YoY, due to a 6% increase in rental prices, as well as the impact of new acquisitions made in 2014 and 2015. The Group’s profits in 2015 were 15.6% lower than in 2014, when the results reflected the positive accounting effect of the deconsolidation of Asentia (which was not repeated in 2015).

The real estate company, which operates in Barcelona and Madrid, as well as in Paris, through its French subsidiary Société Foncière Lyonnaise (SFL) recorded a 20% increase in the valuation of its assets, to €6,913 million, with 4% of that amount relating to its most recent operations in Paris. In 2016, the firm wants to continue its pace of investment, at around €300 million per year, even though that figure rose to €475 million in 2015. It will also continue to operate in the office segment in its three geographical markets, through both renovations and new builds.

Original story: El Mundo (by M. T. Coca)

Translation: Carmel Drake

Colonial Repeats Its Sales And Records A Profit Of €492m In 2014

2 March 2015 – Expansión

An extraordinary year for Colonial.

The real estate group closed 2014 with a profit of €492 million, following the loss of €547 million it recorded in 2013. The key driver behind the turnaround in its results was the deconsolidation of Asentia, the subsidiary into which the company grouped its toxic assets. Colonial’s assets were also revalued, by 9.6% in comparable terms, to €5,757 million, which also had an effect on the income statement.

The group’s turnover amounted to €211.48 million, down 0.8%, although in comparable terms, revenues increased by 3.2%.

Colonial’s share price decreased by 2.53% in trading on Friday, to close at €0.655.

Original story: Expansión

Translation: Carmel Drake