Quabit Buys ‘Rayet Construcción’ for €13.1M

16 May 2019 – Eje Prime

Quabit has acquired 83% of the shares in the construction company Rayet Construcción for €13.1 million as a means of “reducing uncertainties in terms of the costs and timeframes of its construction projects”, according to a statement issued by the company to Spain’s National Securities and Markets Commission (CNMV).

The company reported its results on Wednesday and announced a 5%-10% decrease in turnover due to delays in the delivery of its business plan, whereby following in the footsteps of its rivals Neinor and Metrovacesa, which have also revised down their results in recent months.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Aedas Revolutionises the Property Development Sector by Building 500 Turnkey Homes for Ares

12 April 2019 – El Confidencial

Aedas Homes has decided to launch a new line of business by building complete housing developments for other companies. In this way, the listed property developer hopes to generate value from its production over-capacity; it anticipates recording revenues of around €70 million from the initiative.

In this vein, the company led by David Martínez has reached an agreement with the fund Ares to build 500 homes in its name in three different locations: Torrejón de Ardoz, Alcalá de Henares and El Cañaveral (all in Madrid).

This is the largest turnkey project in the sector since the outbreak of the real estate crisis, a decade ago and as such, represents a real milestone.

The three largest listed property developers in Spain, Neinor, Aedas and Metrovacesa, are all living by the famous mantra “reinvent yourself or die”. As such, they are expanding their operations as they seek to actually generate the high turnover figures that they promised when they made their stock market debuts.

With this latest announcement, Aedas is sending a clear message to its competitors. It has over-capacity in its production model, which means that it can handle turnkey projects on a large scale, as well as deliver the roadmap that it is already committed to.

With the additional 500 homes from this project, Aedas Homes could end the year with more than 3,000 units launched, compared with the 2,580 initially planned for the year.

Meanwhile, Ares Capital is immersed in its commitment to the Spanish real estate market, with a particular focus on the residential segment, with homes both for sale and for rent.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

Habitat’s Land Portfolio Now Spans 1 million m2 with Capacity to Build 10,000 Homes

9 March 2019 – Expansión

The property developer Habitat now owns more than 1 million m2 of land after investing €121 million last year to expand its portfolio. As such, the firm led by José Carlos Saz (pictured below) has the capacity to build around 10,000 homes. Specifically, the firm backed by Bain Capital acquired 27 plots last year on which to build around 2,500 homes. 5% of those plots were non-buildable (in the process of being approved for construction).

The company expects to reach cruising speed with the delivery of 2,000 homes per year from 2021 onwards. Last year, it handed over 270 homes across 4 developments in Barcelona, Málaga and Madrid, to generate turnover of €89 million, EBITDA of €1.83 million and a net profit of €250,000. The company plans to invest €500 million in land purchases until 2021, financed by Bain.

Moreover, like its competitors Neinor, Aedas and Metrovacesa, Habitat is also considering entering the rental home sector and may even begin to build developments for Socimis.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Montebalito’s Turnover Fell by 52% in 2018 & its Losses Amounted to -€2M

28 February 2019 – Eje Prime

Montebalito suffered in 2018. The group recorded losses amounting to €2 million last year, compared with the profit of €948,000 that it obtained in 2017. In parallel, the company’s turnover dropped by 52% to €7 million, according to reports filed by the company with Spain’s National Securities and Market Commission (CNMV).

The decrease in turnover occurred because there were no sales of singular assets in 2018 like there were in 2017, according to Montebalito. “If we strip out the effect of those sales, the group’s turnover rose by 32% YoY, driven primarily by an increase in the sales of developments located in Brazil and Chile”, he said.

Montebalito’s gross asset value (GAV) amounted to €135.7 million at the end of 2018, compared with €144.2 million last year. Similarly, the company has said that the total investment that it has to make for all of its projects in progress amounts to €32 million.

The firm’s investment volume in 2018 was €5.8 million, which represents a 51% increase compared to the previous year. That figure was justified by the acquisition of three plots: one in Madrid, one in Collado Villalba and one in Sevilla, in Isla de la Cartuja, for the construction of a hotel with 92 rooms.

Original story: Eje Prime 

Translation: Carmel Drake

Lar España’s Profits Fell by 4.6% in 2018 to €129.3M

1 March 2019 – Expansión

Lar España recorded a net profit of €129.3 million in 2018, which represented a decrease of 4.6% with respect to the previous year, whilst its revenues grew by 0.3% to €77.8 million.

According to explanations provided by the company, this result includes a charge of €17.9 million in the first quarter, to comply with the Grupo Lar management contract, as it achieved divestments of €100 million.

Without that negative effect, which is only going to be recorded in 2018 (…), the resulted would have amounted to €155.7 million, 7% more than in the previous year. Meanwhile, the EBITDA amounted to €55 million, up by 0.3%.

The firm completed divestments amounting to €272.5 million in 2018 and invested €75.6 million in the renovation of its asset portfolio.

In terms of dividends, the sale of the luxury homes at Lagasca 99 (Madrid) will allow the company to increase its remuneration to shareholders from €0.49 in 2017 to €0.80 in 2018, a rise of 63.2%.

At the end of 2018, the firm’s financial debt amounted to €621.7 million. Last year, its assets appreciated in value by 12.1% (…).

Original story: Expansión

Translation: Carmel Drake

Colonial’s Profits Fell by 23% in 2018 to €525M

26 February 2019 – El Confidencial

Colonial closed 2018 with revenues from rental income of €347 million, up by 23% compared to a year earlier. Nevertheless, the Socimi’s profit decreased by 23% to €525 million, given that in 2017, the firm recorded a gain from the sale of a building in Paris – In & Out – for €445 million and was converted into a Socimi. The buildings contributed by the merger with Axiare generated €56 million, equivalent to 16.1% of the total.

These are Colonial’s first results following the completion of its merger with Axiare, the Socimi over which it launched a €1.45 billion takeover in November 2017, and in a year in which it also increased its stake in the French firm Société Foncière Lyonnaise (SFL).

In a relevant fact sent to the CNMV, the Socimi also announced that it ended the year with assets worth €11.3 billion – distributed across the centres of Paris, Barcelona and Madrid – up by 22%, following the integration of Axiare onto its balance sheet. Excluding the effect of that integration, the increase would have amounted to 8% (…).

“Following an excellent year, we are confident of achieving a very satisfactory performance in the market and of generating rental income of €500 million over the next three or four years”, explained the CEO of Colonial, Pere Viñolas, who added that the company’s recurring profit, after excluding extraordinary items and asset revaluations, amounted to €101 million and represented an increase of 22%.

In operational terms, last year, Colonial signed 103 rental contracts, spanning a total surface area of 175,000 m2, which will generate rental income of €43 million p.a. (…).

In financial terms, at the end of 2018, Colonial recorded net debt of €4.7 billion at the end of 2018, up by 52% with respect to 2017 (€3.1 billion) before the purchase of Axiare. That liability accounts for 39% of the firm’s asset value (…).

Original story: El Confidencial (by E.S.)

Translation: Carmel Drake

Retail Socimi Única’s Profit Soared by 42% in 2018

26 February 2019 – Eje Prime

Única Real Estate is on a roll. The Socimi, which specialises in retail premises, has presented its results for 2018, revealing 42% higher earnings than a year earlier. Specifically, the company recorded a profit of €495,498, compared to €348,060 in 2017.

In parallel, Única generated revenues of €19.7 million, which translates into growth of 49% compared to its turnover a year earlier. The company’s operating result amounted to €858,105 in 2018, up by 45.6% compared to a year earlier.

The Socimi also reported that its real estate portfolio ended the year with a market value of €44.8 million, according to a valuation carried out by Savills Consultores Inmobiliarios. In total, Única has 36 commercial premises, spanning 8,655 m2 (…).

Looking ahead, Única’s forecasts involve executing the corporate operation in which it has been immersed since the end of 2018, and which involves the purchase of 100% of the company’s shares by Vitruvio Real Estate Socimi (…).

Única completed its stock market debut in 2018, and started trading on the Alternative Investment Market (MAB) on 27 June. The Socimi ended the year with a market capitalisation of €30.5 million and a share price of €26.60, up by 1.6% compared to its debut.

Original story: Eje Prime 

Translation: Carmel Drake

Unibail’s Profit in Spain Falls by 3.6% Following the Sale of 4 Assets

20 February 2019 – Idealista

The French shopping centre giant has seen its profits in Spain decline due to one of the operations of the year. Unibail-Rodamco earned 3.6% less in the Spanish market in 2018, specifically, €155 million, following the sale of its portfolio of four shopping centres to the South African fund Vukile for around €500 million, as reported by Idealista News last July. If it had not carried out that sale, the group’s profits would have grown by 2.8%.

The company ended last year in the Spanish market with a net profit of €161 million, up by 10.3% compared to 2016, when the group earned €146 million. Until now, Spain had been one of the fastest-growing countries for Unibail-Rodamco.

Across all of the markets in which it operates, the French company recorded a net profit of €1.9 billion, up by 36.9% YoY. That increase in gains was due, in part, to the purchase of the Westfield shopping centre group.

Whilst the area where Unibail-Rodamco increased its profit by the most in the last twelve months was Central Europe, up by 21.7%, France was ranked in second place, with growth of 5.3%. Behind France was Austria with an increase in profits of 4.3%.

Mega-operation with Vukile

Unibail-Rodamco became one of the stars of the sector last July when it closed the sale of four shopping centres to the South African fund Vukile, through its Spanish real estate vehicle Castellana Properties Socimi for €489 million (…).

Currently, the group led by Christophe Cuvillier (pictured above) owns a portfolio in Spain worth €3.6 billion, which receives 126.2 million visitors per year. Those assets account for 10% of its global portfolio.

Original story: Idealista (by Custodio Pareja)

Translation: Carmel Drake

El Corte Inglés Considers Creating a Socimi to List its Real Estate Assets on the Stock Market

15 February 2019 – Modaes.es

El Corte Inglés is looking for solutions for its portfolio of real estate assets. The Qatari sheikh Hamad Al Thani, the third largest shareholder in the Madrilenian department store group, has proposed the creation of a Socimi to manage the rental of its assets.

The plan proposed by Al Thani, who entered the company’s share capital last summer, involves creating a company in which El Corte Inglés would own a 51% stake. The remaining 49% of the shares would be listed on the stock market.

The Qatari investor already proposed this solution to the previous President of the group, Dimas Gimeno, but it was not successful then, according to El Economista. For the time being, the Board of Directors of El Corte Inglés has not received a formal petition regarding the plan.

The real estate portfolio of El Corte Inglés is worth €17.1 billion, according to a report from Tinsa. The department stores and hypermarkets are worth €15.0 billion, whilst the warehouses, offices and mixed-use buildings are worth €1.1 billion. Finally, the high street establishments are valued at €1 billion.

It is estimated that, in the event that the operation proposed by the sheikh goes ahead, the valuation of the assets could amount to half their current value, around €8.2 billion, according to Tinsa.

In parallel, the group is continuing to work on the sale of 130 real estate assets worth €2 billion in conjunction with the consultancy firm PwC. The property that El Corte Inglés wants to divest now comprises land, offices and buildings defined as non-strategic. Those assets also include some logistics centres.

The objective of these divestments is to reduce the group’s debt so that it can obtain a level of solvency that will allow it to raise financing in the capital markets at a lower price. In this sense, Núñez de la Rosa, the President of the group, has committed to reducing the group’s liabilities by €1 billion in twelve months.

Currently, the real estate portfolio of El Corte Inglés comprises 94 shopping centres, which account for 87% of the total value of the company’s assets. Two of those properties are valued at more than €500 million each, and another two are worth between €400 million and €500 million each.

The department store group recorded EBITDA of €335 million during the first half of 2018, up by 4.4% YoY. Between January and August, the company recorded turnover of €7.6 billion, up by 0.4% YoY.

Original story: Modaes.es

Translation: Carmel Drake

Sales at Shopping Centres Up By 1.3% in 2018, Driven by Cosmetics and Sporting Goods

6 February 2019

The turnover at fashion and accessories stores fell by 0.5% last year due to climate changes and the companies’ commitment to online fashion.

The turnover of shopping centres is increasing. Sales at large stores increased by 1.3% in 2018, boosted by a rebound in cosmetics and sporting goods. On the other hand, sales of fashion and accessories retreated last year, posting a 0.5% drop in turnover.

Turnover at cosmetics and sporting goods stores increased by 5.6% and 4.4%, respectively. Growth in the two sectors allowed shopping centres to offset the 0.5% decrease in sales by fashion and accessories stores, according to Cushman & Wakefield’s index of comparable sales at shopping centres.

2018 brought an end to a series of positive results for the fashion and accessories sector over the last few years, despite an increase of 5.3% in the fourth quarter. Climate changes and increasing investments in online sales largely account for the declines.

Sporting goods stores posted a 4.4% increase in sales in 2018

On the other hand, sporting goods stores posted a 4.4% rise in turnover in a year marked by alterations to store concepts and operators’ strategies, with an increased focus on the footwear and casual fashion segments. Also, the increase in 2018 exceeded those of 2017 and 2016 (1.1% and 1.4%, respectively).

Meanwhile, cosmetics and perfumes saw a breakthrough in 2018, with a 5.6% rise in turnover. Also, these stores combined participation in total turnover at shopping centres managed or marketed by Cushman & Wakefield has grown 1.5 points since 2014.

Original Story: EjePrime

Translation: Richard Turner