Real Estate

We seek to be acutely aware of property sector vulnerabilities and behavior during periods of illiquidity, as well as its potential under improving economic conditions.

With a patrimonial approach and away from speculative positions, we assign part of our resources to the acquisition, active management, operation and selective rotation of properties, including real estate investments for residential and tertiary use and agricultural holdings, with the objective of maximizing their operational efficiency and profitability, defining individual reform strategies and repositioning allowing eliminating inefficiencies in the resources use.

We analyze the real estate assets attractiveness in the spanish market and their strategic impact in terms of profitability according to their monetization capacity and their capital gain potential, investing in those whose location, quality and potential to produce stable long-term cash flows are capable of providing great value and better stand the test of time, preferably in large cities (mainly Madrid and Barcelona) and tourist centers with higher demand, built, of good quality and located in central areas, with possibilities of revaluation, regardless of market evolution, with attractive acquisition assessments at the time of transaction and capable of generating value through their active management.

We focus on three types of property:

• High-quality and low-volatile properties, where a large percentage of the total return is generated by current income.
• Properties with higher volatility that have been undervalued and where we can identify a physical, operational, or financial improvement opportunity that we can address through efficient management, strategically using capital structure to improve investment return.
• Assets where a large percentage of total return is generated by appreciation and are subject to much higher volatility as a result.

In an uncertain socioeconomic environment, characterized by high inflation and market volatility, agriculture is one of the sectors that represents one of the best investment opportunities, both currently and in the medium and long term, thanks to its stability, low risk, adequate profitability, resilience and ability to adapt to changing circumstances.

Located in the Iberian Peninsula with an offer limited due to the characteristics that they must have depending on the crops wanted to carry out, non-amortizable, long lasting in time, without depreciation for lack of use (wasteland cases or fallow), divisible and with an organized formal or informal market, this type of assets allows us, in some cases, that complementary photovoltaic projects may be used to generate independent cash flows which provide additional returns and smooth out production-related revenue volatility by establishing investment synergies in infrastructure matters.

Our preferences are focused on irrigated land, rainfed crops on high liquidity areas and/or where scarcity causes prices to be higher in comparative terms and with a growing trend, valuing with greater emphasis those places where it is feasible to find water at a suitable depth, places close to any important locality and/or tourist center, with easy access and community services availability.