The Management Company for Assets Arising from the Banking Sector Reorganisation (Sareb) will develop 783 homes and 1,200 parking spaces on 13 plots of land owned by Sareb, which have been identified as excellent investment opportunities. The start of in-house development demonstrates greater confidence in the market, which is reflected in greater demand for specific areas and burgeoning growth in local activity.
This decision forms part of Sareb's value-add strategy via which it seeks to obtain the highest possible return on the assets received.
Sareb estimates that total investment for these developments will reach €110 million. In total they comprise 13 developments located in strategic locations in Alicante, Barcelona, Madrid, Malaga, Pontevedra, Seville and Valencia.
The total buildable area of these plots of land is circa 134,000 sqm. The properties will all be primary residential homes. Construction is expected to start in December and to complete by the end of 2017. Sareb has already started pre-sales of these homes via its sales managers.
Three of its servicers - Solvia, Altamira and Servihabitat - will act as technical managers in the development of these 13 schemes.
Third party collaboration strategy
The development of these plots of land forms part of Sareb's value-add policy launched in 2014, in order to meet its divestment objectives and achieve the best outcome possible. This strategy is supported by collaborating with local and national suppliers and, according to Sareb's Executive Chairman, Jaime Echegoyen, "this initiative allows us to be committed to the real estate sector recovery and revitalisation of local economies."
Sareb is working to transfer this collaborative real estate development model to other market players, based on the characteristics of the assets involved and the complexity of the schemes.
In addition to new-build development, since 2014 Sareb has approved investment of almost €50m to complete 70 schemes (1,200 homes), which were received unfinished.
Plots of land by towns
Of the 13 plots of land, four are located in Madrid, two in the city, one in Pozuelo de Alarcón and another in Alcalá de Henares, and comprise a total buildable area of 48,300 sqm (286 homes). Four plots of land are located in Andalusia (three in Malaga and one in Seville) with 33,700 sqm of buildable area (205 homes).
A further three plots are located in the Community of Valencia (two in Valencia and one in Alicante), with a total buildable area of more than 28,000 sqm (153 homes); another project, with a total buildable area of 17,000 sqm (103 homes) will be developed in Catalonia (in Barcelona); and finally, a plot of land in Galicia with a buildable area of 6,600 sqm (36 homes) will be developed in Vigo (Pontevedra).