FADESA's first quarter 2005 sales reach 284 million (ES)

FADESA has taken its pre-sale portfolio to a new historical record. At the end of the first quarter 2005, its value equalled €1.705 billion, or 10,890 units, thus implying an 11% growth against end 2004. In addition, commercial sales advanced from first quarter 2004’s figure by 7% to €284 million, or 1,528 units.

The large volume of housing in FADESA’s pre-sale portfolio, of which 25% are second homes, will represent a significant part of the Group’s future earnings. The handover of homes contributes directly to revenue performance and although deliveries were uniform over the four quarters of 2004, FADESA is to hand over most of the housing as from the second quarter this year.

The property company delivered a total of 945 homes in 2005’s first quarter, for €114.7 million, of which some 22% were second homes. This represents significant growth on the same period in 2004, which saw 763 units delivered.

Meanwhile, in the first quarter of 2005 FADESA obtained €48.4 million gross profit and €24.7 million consolidated net profit. This was from sales of €122.9 million, with the property business contributing €115.5 million of this figure. Accordingly, the real estate activity’s gross margin improved to 41%, from the first quarter of 2004’s 39%, due both to applying the new accounting legislation, the International Financial Reporting Standards (or IFRS), and to handing over a larger number of second homes.

Lastly and also as a result of the new legislation, FADESA’s Ebitda totalled 26% in the first quarter of the year.

Significant events
FADESA has signed an agreement with the real-estate investment fund SCH Banif Inmobiliario FII for the sale of a 25-storey office building. This block forms part of the project under development on the Gran Vía at Hospitalet de Llobregat, adjoining Barcelona, for which FADESA was awarded the tender.

FADESA has also signed a framework agreement with Lazora, a company specialised in subsidised housing for rental, with a sale-purchase transaction covering 76 homes in the Canary Islands.

Furthermore, FADESA signed an agreement with HUSA, the hotel chain, whereby it rents and manages five of FADESA’s three and four star hotels at different points around Spain.

In accordance with the industrial divestment process embarked upon in 2004, FADESA has formalised the sale of all the shares in Escayolas Alba for €3 million.

In early April, the Mediterrania Saïdia resort that FADESA is developing in Morocco will officially unveiled. As part of this big project, six hotels are to be developed, as well as 3,000 housing units made up of apartments and villas, three golf courses, a marina with 740 berths, shopping centres, a clinic and so on.

Source: FADESA

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