Tag: Tres Cantos

Realia to Invest €16M in the Construction of 85 Flats in Tres Cantos (Madrid)

9 May 2019 – Idealista

The property developer Realia has announced that it is launching a new line of business dedicated to the rental of residential homes. In this way, it is following in the footsteps of its rivals in the sector, such as Grupo Lar, amongst others.

The group led by the Mexican magnate Carlos Slim has purchased a plot in Tres Cantos (Madrid), where it is going to invest €16 million in the construction of 85 homes.

As at the end of March 2019, the company had a stock of 546 units (homes, premises and offices) that were either finished or in progress and pending delivery. In the residential sector, it had three developments underway (in Palma de Mallorca, Sabadell and Alcalá de Henares) plus a construction licence to start work on 45 units in Valdebebas (Madrid).

Realia’s land portfolio spans more than 5.7 million m2 and the company registered a net profit of €5.02 million during Q1 2019, up by 18.1% YoY.

Original story: Idealista 

Translation/Summary: Carmel Drake

Domo Gestora Invests €33M to Build c. 100 Homes in Tres Cantos (Madrid)

27 April 2018 – Eje Prime

New challenges lie ahead for Domo Gestora. The property developer has just acquired a new plot of land in Madrid on which it will build around one hundred homes in Tres Cantos, according to sources at the group speaking to Eje Prime. The real estate manager, which specialises in housing cooperatives and delegated management, is going to invest €33 million in this development.

Domo is going to manage the project after one of its cooperatives acquired the plot where it is going to build the development. It will consist of 101 apartments in a gated community with a swimming pool and common areas, whose quality stands out due to the proposals in terms of efficiency, sustainability, child safety and accessibility. Construction work is expected to start in June and all of the homes are expected to be handed over in the middle of 2020.

Domo Gestora is currently operating in the market with a dozen developments. In Madrid, where the group has already handed over more than 500 apartments, the company has 700 homes under development, whilst in Guadalajara, Badajoz, Málaga and Granada, it has 81, 26, 23 and 24 homes under construction.

The most noteworthy developments include one located on Paseo de la Castellana, where Domo is building around twenty terraced homes and one located on Calle Raimundo Fernández Villaverde, which is going to comprise 334 homes.

In addition to the homes under construction, the company has also handed over more than 500 homes in recent years, located in places such as Valdebebas, where it has built 200 apartments; Vallecas, with around fifteen family homes; and Arroyomolinos, with a development of 43 family homes, amongst others.

In total, since Domo Gestora has been active, it has built more than 200,000 m2 of properties, handed over around 1,000 homes and managed more than 2,000 assets. Domo has also managed more than €108 million of contracted work and has accessed more than €300 million of financing.

Domo Activos, the Socimi

In addition to its core business, Domo Gestora has also had to focus on its Socimi in recent months. Last year, the company launched the first property developer Socimi dedicated to medium-sized investors. The business model of Domo Activos involves the acquisition of land for the development of buildings destined for rent, which are then sold off after three years of ownership.

The return on that project, once the divestments have been made could reach 10% per annum, according to the company’s estimates. Until the home is sold and for the period that the building is leased, investors receive the profit resulting from the rental income in the form of a dividend.

Currently, the largest project being promoted by Domo Activos is the development that it is constructing in Madrid, in El Ensanche de Vallecas. This building is going to comprise eighty rental homes, according to explanations from the group.

The next steps for the group are to look for new land on which to build more homes under its Socimi. The company has already identified opportunities in Spain and is now hoping to increase its financial muscle in order to carry out the purchase of the new land through a capital increase of up to €15 million. Domo Activos is going to focus these acquisitions on Madrid, Málaga and Valencia, in the first instance, but is also on the lookout for plots in Sevilla, Córdoba, Granada and Zaragoza.

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake

Ferrovial, FCC, Acciona & ACS Are Building Houses Again

25 May 2017 – El Confidencial

A decade after they sold or wrote off their real estate arms, the country’s largest construction companies are now returning to the residential property development sector. Ferrovial, ACS, Acciona and FCC have regained their appetite for property and although they have different paces and strategies in mind, they have all definitively decided to revive their real estate divisions.

In the case of the group chaired by Rafael del Pino, which sold Ferrovial Inmobiliaria to Habitat for €2,200 million at the end of 2006, it will lay the first stone of this new strategic phase in Valdebebas. It owns plot 128A there, in what is one of the most important urban planning developments in the north of Madrid, and it plans to build between 200 and 300 homes on the site.

And that is just the tip of the iceberg, given that as the group’s CEO, Íñigo Meirás, acknowledged to this newspaper, the firm “is willing to become a property developer once again”. (…).

This strategy, combined with the gradual recovery in the real estate sector, has allowed residential construction work to account for 5% of the group’s total building portfolio, having closed last year at €442 million, up by 31.7% YoY. The group aspires to increase those numbers, by resuming its property development activity, which has caused it to analyse land operations in different areas to the north of Madrid.

FCC Real Estate also wants to make a similar move. The division, led for the last year and a half by Xavier Fainé Garriga, has decided to start developing half a million m2 of land that it owns in the Madrilenian town of Tres Cantos. The company has owned the plots for years, and its construction division will also participate in their development, along with the real estate subsidiary Realia, which will collaborate on the marketing side. (…).

Meanwhile, Acciona has a more ambitious plan, after it tried, two years ago, to divest its real estate arm, by listing it on the stock market or selling a stake in it to a fund – it has now ended up deciding to return to development. That was recognised by the firm’s Corporate Development Director, Juan Muro Lara, in March, when he announced the launch of 16 housing developments: 13 in Spain and the rest in Mexico and Poland.

In parallel, the group is finalising the transfer of its rental properties to Merlin, in a deal disclosed by El Confidencial in October, which will see the former’s exit from the real estate business. It also wants to push ahead with the sale of its hotels and office buildings through individual operations.

In the case of ACS, the firm is carrying out its strategy in the development segment through Cogesa, the historical subsidiary of the group, which stands out because it is the owner of the group’s two main corporate headquarters, the office buildings located in Las Tablas and on Avenida Pío XII in Madrid, and for owning sizeable land portfolios in areas such as Montecarmelo, Arroyo Fresno, Las Tablas, Carabanchel and Ensanche de Vallecas.

The turning point for this subsidiary, which is led by the brother of Florentino Pérez, Enrique, came two years ago, when it carried out a capital increase amounting to €44 million and then acquired one of the last plots of residential land in Montecarmelo for €2,200/m2. That figure turned the operation into one of the most onerous since the burst of the bubble, but is now seen in a very different light. (…).

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

FCC To Sell Its Spanish RE Assets Worth €300M+

10 June 2016 – El Economista

FCC owns real estate assets worth €328 million. The company controlled by the Mexican tycoon Carlos Slim is working on the sale of all of its assets located in Spain, which include housing developments, land/estates, garages and other premises. Not in vain, in the last year, FCC has strengthened its team in the real estate division, whereby converting it into a sort of real estate agency. Nevertheless, far from withdrawing from the real estate market, the Spanish multi-national wants to take advantage of the recovery in the sector to combine the construction of homes with their promotion and whereby open a new line of business.

Under the leadership of Xavier Fainé, the former CEO of Cementos Portland, FCC Real Estate is looking to generate value from its real estate assets by proceeding with their orderly sale. The progressive, albeit slow, recovery of the market in Spain and the positive outlook is helping with this task – house sales grew by 9.2% during the first quarter of the year, although the figures are still 56.9% below those registered in 2007 -. Sources at the company indicate that the real estate assets belong to FCC Construcción “and they are administered from there”.

FCC’s most valuable real estate asset is a batch of land plots/estates under development in Tres Cantos, in Madrid, with have a book value of around €120 million. Also in the capital, the company owns the Las Mercedes estate, worth around €120 million. In Barcelona, it owns land in Sant Joan Despí and Badalona, which have a combined value of €64 million. The company also owns several housing developments in Vitoria, Huelva, Pino Montano and Mairena de Aljarafe, the Oporto Industrial Estate in Sevilla, as well as flats, other premises and garages in several cities. According to FCC, the total value of these assets amounts to €328 million. However, clearly the market will dictate the final consideration it receives. (…).

Original story: El Economista (by Javier Mesones)

Translation: Carmel Drake