Why we invest in land development
In 2012, we issued bonds valued at €50,781 million in order to acquire almost 200,000 financial and real estate assets. The sale of this portfolio over the course of 15 years should generate enough resources to repay this debt, but the process is closely linked to the economic cycle.
Due to the fact that demand in some areas has pushed the price of some assets below what Sareb paid for them, we decided to explore new avenues that would allow us to increase revenues and therefore fulfil our commitment to repay the debt guaranteed by the State.
We are therefore working on a value creation plan that involves investing in the refurbishment of properties and completing other developments, as there is higher demand for completed properties. This plan is being implemented in areas where there is low supply.
In terms of land, we are constantly analysing how to maximise its market appeal, as preparing land for sale, increases value in the property portfolio.