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