Quabit Buys Land In Málaga For €23.7M To Build 674 Homes

6 September 2017 – El Economista

Quabit is pushing ahead with its plans to purchase land by signing of a major operation in Málaga, where it has acquired several plots of land for €23.7 million, with the capacity to build 674 homes.

30% of the operation will be paid for using shares through a non-monetary capital increase and the remaining 70% will be financed through support from funds advised by the investment firm Avenue Capital Group.

The US company granted Quabit a financing line of up to €60 million for the acquisition of buildable land, which represented a major boost for the property developer, one of the few entities that managed to survive the severe crisis that hit the sector.

Altogether, the new plots have a buildable surface area of 79,000 m2, which will allow Quabit to construct 674 homes (147 detached family homes, 91 terraced family homes and 436 homes in “city garden” type blocks), according to a statement issued by the real estate company chaired by Félix Abánades.

Quabit’s new plots of residential land, which also include a retail plot, account for the majority of the Las Lomas del Flamenco sector, where urbanisation work has already started.

The product that the firm will construct in this area will focus mainly on second homes, aimed at foreigners for the most part, the star segment of the growth in the real estate sector in the province of Málaga, according to the most recent statistics published.

Las Lomas del Flamenco is located in the Malagan municipality of Mijas, 30 km away from Málaga capital, with views over the Mediterranean Sea and the Bay of Málaga towards Marbella and very close to Mijas Golf, one of the most popular and prestigious golf complexes on the Costa del Sol.

This operation follows a wave of purchases already carried out by the company during the first half of this year. In this way, between January and June, Quabit acquired residential land worth €39.1 million, with a buildable surface area of 119,518 m2 to construct 1,097 homes.

2017 is proving to be a key year in the expansion process of the company, which plans to construct 4,000 homes in total between now and 2021, to fulfill its business plan. For the time being, the evolution of the company’s sales rate is supporting the execution of its plan, given that at the end of June, it was selling between 40 and 60 homes per month, which represents a pre-sales figure that is more than 20% higher than the total commercial portfolio.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Sareb Sold 5,000 Assets In H1 2015, A Decrease Of 38%

3 July 2015 – El Economista

Sareb’s Chairman, Jaime Echegoyen (pictured above) has revealed that the entity sold 5,000 properties during the first half of 2015, which represents a sales rate of 28 units per day, with the majority of its activity concentrated in the retail market.

These figures show that the so-called ‘bad bank’ reduced its sales rate by 38.27%, with respect to the same period last year, when it sold 8,100 properties during the 6 months to June, i.e. 45 properties per day. Sareb has set a sales target of 15,000 properties for 2015.

According to Echegoyen…60% of the 5,000 properties sold during the first half of the year came from the balance sheet of property developers, as a result of agreements to facilitate the sale of homes that had been held as collateral for loans. (…).

The head of the ‘bad bank’ highlighted that the majority of the company’s debtors are small and medium-sized companies “which, in many cases, need support to settle the debtor position that they hold”. In this sense, he reiterated that Sareb “is not a bank” and therefore it cannot offer new financing, but it can collaborate by affording borrowers time and flexibility. Thus, during the first few months of the year, the company has evaluated more than 2,500 proposals from debtor companies to arrive at sale, restructuring and refinancing agreements.

Sale of land

Although the volume of property sales decreased during the first six months of the year, the volume of land sales increased, by 43% with respect to the same period last year, to reach 23, whilst the income from these transactions grew four-fold.

Moreover, Sareb closed 14 transactions in the tertiary sector, i.e. double the number recorded during the same period last year, with growth in income of almost 50%.

Echegoyen acknowledged that Sareb’s activity in the institutional market during the first half of the year “has been moderate” and he announced that the company intends to continue its divestment initiative during the second half of the year, with the launch of several loan portfolios, linked to different kinds of collateral, such as land, work in progress properties and logistical assets.

The Chairman of the ‘bad bank’ indicated that the current environment in the real estate sector “is very different” from that seen in 2012 and 2013, since the volume of transactions is beginning to grow, and prices are stabilising and have even started to recover in certain parts of the country, both for new and second-hand homes.

Social purposes

“Moreover, the recovery is not limited to the market for homes, but rather it is affecting other segments as well, such as land and tertiary assets, which is positive for us given the large range of real estate assets in our portfolio”, he added. In this sense, Echegoyen revealed that the bank plans to exploit this ‘stock’ of assets to deepen its commitment to society and he indicated that they are working to expand their social initiatives through other types of assets, beyond housing. (…)

Original story: El Economista

Translation: Carmel Drake