AEDAS Homes keeps its Business Plan intact and now has land for the next 4 years
AEDAS Homes keeps its Business Plan intact and now has land for the next 4 years
- The company led by David Martinez reached all its targets in 2017 and 2018
- In 2018, the company acquired 2.5 times the amount of land it had committed to with its shareholders and delivered 7% more homes than forecast
- By 31 December 2018, it had secured 100% of the construction permits needed for its 2020 deliveries and had broken ground on 98% of those developments
- David Martinez, CEO: “Our operations results confirm that our ramp-up phase is on the right track, with our sights now set on reaching cruising speed”
April 2019 - AEDAS Homes is the only listed residential developer in Spain that has kept its Business Plan intact. Following on its Full Year 2018 Results Presentation, during which the home builder’s management team confirmed that, just as in 2017, all 2018 targets had been achieved, the company has reconfirmed the roadmap presented to investors when the company went public in 2017.
Looking ahead, the developer led by David Martinez now has a landbank that covers all the launches set out in its Business Plan for the next four years. In the twelve months of 2018, it acquired plots on which to develop 2,616 units, two-and-a-half times more than the target it committed to with its shareholders for that year (1,042 units), and closed contracts with options to purchase plots for an additional 407 units, meaning that AEDAS Homes closed out 2018 with a landbank for 14,892 units.
Investments: business opportunities
The average investment in these acquisitions works out to approximately €49,000 per unit, an attractive price that rubber-stamps the company’s strategy and skill for identifying business opportunities that strictly adhere to its investment criteria, especially with regard to return on investment and location. Well over a third (39%) of the assets acquired were in the Centre region, which is the most dynamic market in Spain in terms of economic and real estate growth.
“With the investments we made last year, we have once again demonstrated our capacity to replenish our landbank and more importantly, we have made our plan for deliveries up to 2021 ironclad, reinforcing visibility on our Business Plan,” highlighted David Martinez, CEO of AEDAS Homes.
In addition to securing its operations over the coming years, thanks to the strengthening of its land bank with assets that have a guaranteed rate of return, AEDAS Homes also fulfilled the 2018 delivery schedule as set out in its Business Plan. In fact, as of 31 December 2018, it had given keys to customers for 7% more units than planned.
Moving towards cruising speed
Additionally, over the course of 2018 the developer stepped up the pace on its ramp-up phase, thanks to the launch of 2,265 units, which have a GDV of €708 million. In total, as of 31 December 2018, AEDAS Homes had put 4,038 units on the market since its launch in 2017, with a GDV equal to €1.485 billion.
2018 served to ratify the exceptional visibility AEDAS Homes has on its future business. At year-end, the company had already sold 77% of the 1,055 units planned for delivery in 2019 and had secured construction permits for 100% of the 1,986 units scheduled for delivery in 2020, with 98% of those units already under construction.
“All the figures confirm that we are on the right track in our ramp-up phase and we are stepping up the levels of activity we committed so as to reach our run-rate. Starting in 2020, we will be launching 3,000 units onto the market each year, and from 2022 onwards, we will be delivering 3,000 units annually. At that point in time, the company will have achieved its cruising speed, as outlined in our Business Plan,” explained the CEO of AEDAS Homes.
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