Tag: unfinished development

Sareb Puts 564 Unfinished Developments Up For Sale

30 May 2016 – El Diario

Sareb, better known as the bad bank, has put 564 residential housing developments up for sale. The majority of the portfolio contains properties in the initial stages of development or work in progress and most of them are located in Cataluña, the Community of Valencia, Andalucía and the Canary Islands.

Initially, Sareb will release 140 unfinished residential developments onto the market and will thereby supply almost 5,000 homes and a few tertiary use buildings.

Most of the unfinished developments to be sold during this first phase are located in Andalucía and Cataluña, with 28 buildings each, as well as in the Canary Islands, with 26; whilst by province, the supply is most abundant in Barcelona, Las Palmas, Alicante, Cádiz, La Coruña and Madrid.

In this way, the Canary Islands, with 1,166 homes; Andalucía, with 1,057; and the Community of Valencia, with 838, together account for more than half of the properties that will come onto the market at the start of this operation.

The General Business Director at Sareb, Alfredo Guitart, considers that “having overcome the crisis”, now is the time to provide a commercial outlet for these developments.

“In this way, the sale represents an investment opportunity for local property developers, who are very familiar with their environment and have the capacity to finish the construction work and bring the properties onto the market successfully”, said Guitart.

The company also resumed 68 developments between 2013 and 2015 and expects to finalise 20 developments, where work had been suspended, before the end of 2016.

Original story: El Diario

Translation: Carmel Drake

Drago Capital Enters Residential Development Segment

29 December 2015 – Cinco Días

Property development is becoming a business opportunity for companies in the real estate sector once  again, following the severe crisis that began in 2008. Even for the least conventional players, such as Drago Capital, an investment fund that normally acquires other kinds of assets like office buildings and commercial premises.

The fund has started to develop a new urbanisation, dubbed Ocean Hills, in the vicinity of Estepona (Málaga) on the Costa del Sol. It represents its first major project targeted at the second home market and the development comprises 62 apartments.

Drago Capital identified the business opportunity in an unfinished development, which it acquired in December 2014, and which it has completely redesigned.

In total, the initial investment amounted to €8 million, which was sourced mainly from a number of family offices, according to the managers of the fund.

Type of apartments

The managers ruled out a development on the beachfront and instead, consider that more value can be obtained inland. The homes are located next to the Monte Selwo park, in a natural environment and with views of the Mediterranean Sea.

62 modern homes will be constructed with a maximum of two bedrooms and all with spacious terraces. Construction will centred around four, three-storey blocks of flats. The marketing of Ocean Hills will be targeted primarily at overseas buyers, mainly in the North of Europe and in the UK. The first part of this urbanisation has already been sold in its entirety to a group of Norwegian citizens.

Project details

The development is being constructed on a plot of land measuring 7,000 m2 and there may be an opportunity to construct new buildings on two adjoining plots, which would add another 7,000 m2.

The contract for the construction work has already been awarded to Avintia, which will complete the construction of the homes and resume the work that was suspended before Drago Capital’s purchase. The homes are expected to be finished by the end of 2016.

Drago Capital considers that the market for second homes, with the characteristics found in this development, has returned and it regards this investment as a good opportunity. Moreover, its managers consider that the Costa del Sol area in general, and both Marbella and Estepona specifically, represent places with significant demand.

Original story: Cinco Días (by A. Simón)

Translation: Carmel Drake