- The homebuilder acquired plots to develop up to 2,616 units while adhering to the same strict investment criteria that has led the company to have the best residential bank in Spain
- Up to a third of the company’s investment focused on Madrid, the leading residential market in Spain
- Sergio Galvez, Chief Investment Officer of AEDAS Homes: “2018 was an exceptional year for land investment, both in terms of quality and in the number of opportunities identified”
February 2019.- AEDAS Homes, a leading Spanish homebuilder, surpassed its 2018 land investment targets by a wide margin, permitting its delivery targets to be secured for the coming years. Over the course of 2018, the residential developer acquired land for up to 2,616 units, which is 2.5 times more than what it had committed to with its shareholders (land for 1,042 units).
Chief Investment Officer Sergio Galvez said he viewed 2018 as “an outstanding year for land investment for us, both in terms of the quality as well as quantity. Not only did we manage to more than comfortably surpass our annual target, but we did so while strictly adhering to our investment directives, especially those related to the expected rate of return.”
With these new investments, the developer has further improved visibility on its business plan, with the focus now on the launch and delivery targets it has committed to in order to achieve its run-rate, which is 3,000 units launched annually (by 2020), and 3,000 units delivered annually (by 2022).
More than 1,200 investment opportunities analysed
“To be able to meet (and surpass) our investment targets, we intensified the processes we follow to identify and analyse opportunities. As a result, our team has been able to analyse more than 1,200 investment opportunities. Having such a significant volume of opportunities clearly demonstrates that there continues to be a considerable amount of available residential land in the areas where we operate”, explained the developer’s Chief Investment Officer.
As a result, AEDAS Homes closed out 2018 with a total investment of €111.7 million, meaning that the company made, on average, one new investment every ten days.
The company continues to strictly adhere to its disciplined investment strategy, meaning that 100% of the investments made were for fully-permitted land in the areas with greatest demand in the company’s historic geographic footprint.
“Undoubtedly, one of the most significant, differentiating factors in 2018 was our decision to concentrate a third of our land investment in Madrid, which further reinforces our already strong, consolidated position in Spain’s most important residential market,” remarked the Chief Investment Officer of AEDAS Homes.
Granada and Valladolid: 2 new hotspots for the company
“After spending several years closely following the evolution of the residential markets in Granada and Valladolid, in 2018 we were satisfied that our required comfort levels, in terms of sustainable growth in prices and total volume of homes being sold, had been met. At that time, we activated our investment process in those cities and were able to add what are, arguably, the best locations in both of these cities to our portfolio,” explained Galvez. The company has invested in two sectors in Granada, where it will develop more than 750 units (570 of which correspond to investments made in 2018 and the rest in January 2019) and in one area in Valladolid, for 179 units.