Bankia Puts 3,000 Foreclosed Flats Worth €500M Up for Sale

4 June 2019 – El Confidencial

Bankia has put another problem asset portfolio up for sale as it continues to take the Spanish real estate market by storm in 2019. Project Jarama contains 3,000 flats worth €500 million and is one of the bank’s largest operations involving foreclosed assets to date.

The bank chaired by José Ignacio Goirigolzarri has engaged KPMG to coordinate Project Jarama, which is complicated by the fact that more than half of the assets have not yet been fully repossessed by the bank.

In those cases, rulings have been made in the courts to award the property to the bank in exchange for the defaulted debt, but the entity does not yet hold the deeds or the keys, and the final stage of the foreclosure process could take several months in each case.

This sale forms part of Bankia’s strategy to accelerate its strategic plan. At the beginning of 2018, it set itself the target of divesting non-performing assets worth €9 billion from its balance sheet. By March 2019, it had already sold €6.5 billion.

In recent weeks, it has sold a €300 million portfolio to Blackstone and a €150 million portfolio to Cerberus and Kruk.

Original story: El Confidencial (by Jorge Zuloaga)

Translation/Summary: Carmel Drake

Neinor Revises its Profit Forecast for 2019 Down by 50%

9 April 2019 – Expansión

Neinor has a new CEO and is revising down its profit and construction forecasts. Borja García-Egotxeaga (pictured below), Operations Director at the property developer until now, will take over from Juan Velayos, and will oversee a new-look strategic plan.

The revised forecasts involve the firm delivering between 1,200 and 1,700 homes in 2019, compared with the 2,000 units initially planned, and achieving an EBITDA of €70 million, down by 53% compared to the initial projection of €150 million.

Neinor has also cut its forecasts for 2020, with a revised EBITDA of €100 million for next year compared with the initial forecast of €300 million, as well as new home deliveries of between 1,700 and 2,400 units, down from 4,000.

The company underlined its intention to remunerate its shareholders with dividend distributions of €200 million until 2022 and to repurchase up to €100 million in shares to offset the decrease in its share price.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Habitat Leaves its Losses Behind after €500M Capital Injection from Bain

2 April 2019 – Expansión

Habitat Inmobiliaria recorded revenues of €89 million in 2018, six times more than during the previous year. It also generated a profit, registering an EBITDA of €1.8 million, compared with losses of €9.86 million in 2017.

According to the company, this change in fortune has come about following its purchase by the US investment firm Bain Capital Credit at the end of 2017. Last year, Bain and Habitat’s new management team, launched a new strategic plan for the next three years, which included the contribution of €500 million for land purchases.

In 2018 alone, the property developer invested €121 million buying up land with a total buildability of 300,000 m2. As such, Habitat now owns a land bank spanning more than 1 million m2, which will allow it to build 10,000 new homes over the next few years. Currently, the property developer is working on the construction of 3,400 homes.

Original story: Expansión (by Rocío Ruiz)

Translation/Summary: Carmel Drake

Habitat Invests €14M to Promote 88 Homes in Castellón

21 March 2019 – Eje Prime

Habitat Inmobiliaria has purchased a plot of land measuring 4,400 m2 in Castellón, with a buildability of more than 8,800 m2, on which to construct 88 homes for €14 million.

The plot is located in the La Salera neighbourhood, twenty minutes from the beach. Marketing of the homes is expected to begin in the second quarter of this year.

The development forms part of the company’s strategic plan to invest €500 million before 2021 and to hand over more than 2,000 homes per year from 2021.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Bankia Entrusts the Sale of 3 NPL Portfolios Worth c. €1bn to KPMG

3 March 2019 – El Confidencial

Bankia is on course to fulfil one of the objectives of its strategic plan a year early. Two years ago, the entity set itself the target of divesting almost €9 billion from its balance sheet between 2018 and 2020, and last year alone, it sold problem assets worth €6 billion. With the sales forecast for this year, it is set to achieve its goal a year ahead of schedule.

In this context, the entity is launching the sale of three portfolios, worth around €1 billion, with the aim of selling them in the middle of this year.

The largest portfolio, worth around €500 million, comprises doubtful property developer loans; the next, worth around €200 million, contains unsecured debt; and the final one, worth several hundreds of millions, has yet to be defined. All three have been entrusted to KPMG for their sale.

Despite its huge efforts last year, Bankia still has around €8 billion in doubtful loans and €3 billion in foreclosed assets on its balance sheet.

Original story: El Confidencial (by Jorge Zuloaga)

Summary/Translation: Carmel Drake

INBISA Delivered 378 Homes in 2018 and Now has 1,500 Homes Under Construction

12 February 2019 – Press Release

INBISA Inmobiliaria closed 2018 with 378 homes delivered in privileged locations and the purchase of nine buildable plots of land. At the same time, it started 2019 with 1,500 homes under construction and it remains firm in its commitment to search for new opportunities and to its objective of developing new projects in accordance with the current market.

Thanks to the experience harvested since its creation in 1995 and its capacity to adapt to the needs of the market and its clients, in 2018, INBISA Inmobiliaria successfully achieved the objectives established at the start of the year and took another step forward in the fulfilment of its Strategic Plan 2017-2020.

In this context, last year, the company delivered three residential developments containing 379 homes in total (70% more than in 2017), located in the Madrilenian neighbourhood of Sanchinarro, Sant Cugat del Vallès (Barcelona) and the Vizcaya town of Etxebarri (…).

In terms of the new plots of land, during 2018, INBISA Inmobiliaria acquired nine plots on which to construct 600 new homes. The portfolio is distributed between Madrid, Barcelona, Málaga and Palma de Mallorca, priority enclaves for the company within its strategy to back locations with high and sustained demand in the real estate market. In the case of the Community of Madrid, INBISA Inmobiliaria backed the northwest of the capital, primarily the neighbourhoods of Valdebebas and Sanchinarro.

In Cataluña, the company continued its expansion across the metropolitan area of Barcelona, specifically, in Ripollet, Teià y Viladecans, whilst in the Balearic Islands, it acquired a plot in Palma de Mallorca. Finally, in light of the booming interest from primarily international clients in the Malagan coast, INBISA Inmobiliaria opted to purchase two plots in Mijas and Estepona (…).

All of this has allowed the company to start 2019 as one of the leading property developers in Spain, with 1,500 homes under construction distributed across different enclaves of the country and with a clear commitment to searching for new developments in residential and logistics areas this year (…).

Moreover, as part of its strategic plan for this year, the company is also planning to develop some new logistics projects in light of the great interest in the sector from domestic and international investment funds (…).

Original story: Press Release

Translation: Carmel Drake

Unicaja Considers the Sale of a Large RE Portfolio in 2019

12 February 2019 – Expansión

Unicaja accelerated the clean up of its balance sheet during the course of 2018. The Málaga-based entity decreased its volume of non-performing assets by 22%, in such a way that it is now close to the reduction objective it established in its latest strategic plan for 2020. That is according to the figures provided by the bank itself during the presentation of its results for last year.

The entity chaired by Manuel Azuaga (pictured above) ended 2018 with a volume of non-performing assets (NPAs) amounting to €3.6 billion, of which €1.7 billion were foreclosed assets and €1.9 billion were non-performing loans.

In five years, the bank has reduced its toxic legacy by 51% or more than €3.8 billion. Unicaja’s commitment to investors was to bring its exposure to problem assets down below the €3.5 billion mark before the end of 2020. The rate of sales of small NPA portfolios has allowed it to get ahead in the calendar that it established in its strategic plan. But the entity will continue its clean up.

The heads of Unicaja have reported their intention to continue with small portfolio sales during 2019. Moreover, they do not rule out carrying out the sale of a large portfolio in order to segregate a majority of the non-performing exposure, in a similar way to what most of the Spanish banks have been doing over the last two years.

Unicaja’s decision to carry out a massive property sale will depend, like in other cases, on the discounts that the entity will have to apply to its portfolio. The NPAs of the Malagan bank have an average coverage level of 57%, which means that a discount of a similar percentage could be applied to the book value without resulting in accounting losses for the entity this year.

High asset quality

Unicaja is, together with Abanca, the only Spanish bank entity that still retains ownership of its servicer, the real estate subsidiary through which it sells its homes and commercial premises.

The recent decision by Sabadell to sell 80% of Solvia to Intrum followed other previous operations that have seen the Spanish banks undoing their positions in the property segment, including the sale of Servihabitat to Lone Star by CaixaBank, and of Aliseda to Blackstone by Santander.

Beyond Unicaja’s plans for its property, the entity has been recording a positive trend in terms of the quality of its assets for several years now. The net inflows of problem loans have registered eight consecutive quarters of decreases, and between September and December, they recorded the largest decrease in the bank’s historical series.

Since 2014, Unicaja’s default ratio has also decreased by almost half: from 12.6% recorded in December 2014, the Málaga-based entity has managed to clean up its balance sheet to bring the rate of toxic loans down to just 6.7%.

Original story: Expansión (by Nicolás M. Sarriés)

Translation: Carmel Drake

Habitat Buys Land for 196 Homes in Las Palmas de Gran Canaria

31 January 2019 – La Vanguardia

Habitat Inmobiliaria has purchased land with a buildable surface area of 22,000 m2 in Las Palmas de Gran Canaria, where it is planning to build two developments comprising 196 homes in total, in which it is going to invest €45 million.

The company, which carried out 27 land purchase operations during the course of 2018, spanning 170,000 m2, is now looking to develop around 2,500 homes, in which it is going to invest more than €515 million.

These operations form part of the company’s strategic plan, which will involve an investment of €500 million by 2021, and which will involve a delivery rate of more than 2,000 homes per year from 2021 onwards, according to figures from the property developer.

With all of this, as well as its presence in Andalucía, Levante, Cataluña, Madrid and the Canary Islands, in 2018, the firm incorporated new regions into its portfolio with plots in Cantabria, Asturias and Galicia (…).

Original story: La Vanguardia 

Translation: Carmel Drake

Housers Closes 2018 with €72M in New Funds from Individual Investors

23 January 2019 – Eje Prime

The Spanish proptech Housers ended 2018 having raised €72 million from individual investors to carry out investments in the real estate sector, which represents an increase of 90% with respect to 2017. The company is currently in the middle of a financing round, through which it hopes to raise €4 million to implement its strategic plan for 2019-2023.

According to the company, since it started operating in 2015, the almost 100,000 users who have an account with Housers have financed 183 real estate projects in Spain, Italy and Portugal, which has enabled the construction or renovation of more than 500 properties.

Of all of those operations, 42 projects have already been completed and the capital and interest have been returned to investors. Specifically, during the course of 2018, the participative financing platform quadrupled the amount returned to its users, from €4.45 million in 2017 to €20.4 million, a month-on-month growth rate of 12% (…).

The next steps for the proptech include developing its business in international markets, such as Portugal and Italy, where it is already present, as well as expanding into other countries in Europe and even in Latin America. The financing round currently underway should serve to fund the international growth plan. Nevertheless, the company’s shareholders are currently facing a capital increase, which may not go ahead.

The incorporation of Juan Antonio Balcázar (pictured above) as the new CEO of Housers in July last year came in response to the interest from the proptech for a director with experience in the world of management to lead the project and prepare the company for growth and expansion, through the development of a 3-year strategic plan, which will begin in 2019.

Original story: Eje Prime 

Translation: Carmel Drake

Habitat Buys 2 Plots of Land in Sevilla on which to Build 330 Homes

21 December 2018 – El Mundo

Habitat Inmobiliaria has announced the purchase of two plots of land, spanning almost 10,000 m2 in Sevilla, on which it is going to build more than 330 homes.

The property developer is going to invest more than €50 million in the development of the homes and the plot will have a buildable surface area of around 32,000 m2. The project is located fifteen minutes from the centre of the city and ten minutes from the airport, in the Sevilla Este neighbourhood, near to the Conference and Exhibition Centre. It is considered to be an area with high demand for housing and it is equipped with a full range of services.

With this new project, Habitat is now working on three developments in the Sevillan capital, which forms part of its strategic plan through which it plans to deliver more than 2,000 homes over the coming years. For this, the company’s roadmap is committed to an investment of around €120 million by the end of 2019 and of €500 million by the end of 2021.

Original story: El Mundo 

Translation: Carmel Drake