Sareb to invest €272 million in Andalusia to develop homes and land
Sareb has committed to investing €272 million in developing homes and land in Andalusia, as announced by company CEO, Jaime Echegoyen, at an event held to celebrate the Nineteenth Anniversary of the magazine Andalucía Inmobiliaria (Andalusian Real Estate).
Sareb already has various plans in place that aim to build up to 1,559 homes across Andalusia over the next few years, equating to an investment of €151 million. The lion’s share of these homes – some of which have already been completed and delivered – are located in Malaga (835 homes) and Seville (498 homes). They are followed by the provinces of Granada (136), Cadiz (50), Huelva (35) and Cordoba (5).
The remainder of the investment committed to Andalusia for the upcoming years – totalling €121 million – will be invested in planning management for the land that the company owns in the region.
At end-H1 2018, Sareb had already approved the construction or completion of 6,446 residential properties across various regions of Spain. Of these, 1,355 have been completed (908 of which have now been delivered), 1,860 are under construction and 3,231 have been approved and are awaiting the commencement of construction works.
Business activity in Andalusia
In H1 2018, 12% of the properties sold by Sareb were located in Andalusia. In other words, Sareb sold over 700 company-owned assets, including homes, land and commercial properties. It also managed 680 Sareb debtor proposals, 46% up y-o-y.
Sareb aims to reach agreements with its debtors to develop sales growth plans (PDVs). These plans establish a collaboration aimed at selling the properties securing the loans, thereby allowing developers to obtain liquidity and reduce or cancel their debts. During the first half of the year, these plans led to the sale of over 700 homes in the region.
Thanks to Sareb’s activity across Spain during the five and a half years since its creation, the company has reduced its entire asset portfolio by 28.9%, to €36,128 million, and has cancelled 25.4% of the debt that it issued to finance the acquisition of the assets transferred to it from the nine banks that received State aid during Spain’s bank restructuring process.