Fadesa's residential sales total €312 million (ES)

The FADESA Group's residential sales €totalled 312 million in the first half of 2005, with most handovers of homes forecast for the last few months of 2005. Furthermore, FADESA's pre-sale stock reached a record high of €1,842.4 million at end-June — equivalent to 11,561 homes, or a 32% increase, and set to play a vital role in future Group revenues.

In this respect, more than 27% of pre-sold units correspond to second homes. In addition, commercial sales advanced by 13% against the same period in 2004 to €580.4 million.

Net profit surged by 17% year-on-year, so ending the first half at €67.1 million, while the gross margin was particularly strong at 41%. Ebitda topped €95.7 million, giving a 29% margin. The Group's total assets also expanded year-on-year, by 53%, mainly thanks to the increase in activity.

As regards the land portfolio, 2.4 million m² of buildable area were purchased in the period. This left the land bank at 18.4 million m² in June 2005, or 12% more than on 31 December 2004.

The Company continued to implement its internationalisation strategy in the first half of 2005 through entry into new markets. In Europe, after establishing its presence in Hungary last year with a residential project in Budapest, FADESA announced its entry into Poland in May through an alliance with the Prokom Group, a leading local partner, for developing its real estate business in the country. Then a month later in June FADESA bought the French company Financière Rive Gauche, through which it plans to invest around €200 million on the French property market within three years. In the same quarter, furthermore, FADESA was awarded by the Moroccan government a large residential, tourist and commercial project to develop in Tangiers, undoubtedly cementing the Company's role as one of Spain's biggest investors in Morocco.

Other significant events
FADESA signed a sale-purchase transaction with SCH BANIF Inmobiliario FII, the real-estate investment fund. This relates to the sale of a 25-floor office building, forming part of the project being developed on the Gran Vía de Hospitalet de Llobregat in Barcelona, for which FADESA was awarded the contract.

FADESA has also reached a framework agreement with Lazora, a company specialising in subsidised rented housing, for the sale of 76 homes in the Canary Islands.

Meanwhile, HUSA and FADESA signed an agreement whereby under lease arrangements the hotel chain takes over management of five of FADESA's three and four star hotels in various parts of Spain.

Pursuing the industrial divestment process begun in 2004, FADESA agreed the sale of its 100% shareholding in Escayolas Alba, for €3 million.

In May, thanks to reinvestment of 2004's dividends, 854,456 new shares were issued through implementation of the related capital increase.

Lastly, in early April, FADESA made its official presentation of the Mediterrania Saïdia resort, which it is developing in Morocco, and a month later it opened Ciudad Jardín in Aranjuez.

Board of Directors in La Rioja
FADESA's Board of Directors held its meeting in Logroño last Friday, in which it analysed the first-half results. This took place as part of the new Group policy to hold travelling board meetings throughout the geographical areas where FADESA is present.

Source: FADESA

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