Renta Corporación invests over €200 M in Paris
Renta Corporación invests over €200 M in Paris
• As it celebrates its fifth anniversary in the French capital, the Company has just acquired a new building.
Barcelona, 13 July 2006.
Renta Corporación has celebrated its fifth anniversary in business in Paris, where it has invested over €200 M in 12 real-estate projects since its first operation in this market. Paris was the springboard from which the Company launched its international expansion process, successfully developing a rapid organic growth process. After Renta Corporación’s entry into Paris, other listed Spanish real-estate companies followed suit, mainly through acquisitions.
The Company increases its average operation size by a factor of 10. -Over the last five years it has been building on its experience and strengthening its position in the French capital, while growing the average size of its operations. From an operating investment of €2.5 million in 2002, the average figure has now gradually risen to €25 million invested in each of its operations. “Renta Corporación’s high-turnover model in the purchase, transformation and sale of buildings is a perfect match for the high liquidity Paris market, allowing us to undertake bigger and bigger investments,” remarks C.E.O Josep-María Farré.
The Company expects to double the size of its operations. -In line with the Company’s planned growth for this market, C.E.O Josep-María Farré says: “Our medium term goal is to increase the size of our operations to over €50 million.” We will continue to do this gradually, taking advantage of the opportunities which arise in the French capital.”
New building acquired in Paris.-Renta Corporación has closed a deal to buy a new building in Paris in the exclusive downtown 16th Arondissement. It is a 7,250 m2 residential property building where the Company is to develop a refurbishment and improvement project.
Renta Corporación, pioneer in Paris.– Renta Corporación was a pioneer among the large Spanish real-estate investors operating in the Paris market. In contrast to most listed Spanish real-estate companies, which entered this market suit through acquisition, Renta Corporación began its international venture in Paris using an organic growth model. “We thought long and hard about it, but we could see that the Paris market offered some highly attractive investment opportunities and some clear prospects for developing our business model,” says Josep-María Farré, C.E.O of Renta Corporación. “Our forecasts have been confirmed, as evidenced by the notable contribution Paris makes to our bottom line,” he adds. Today, Paris is one of Renta Corporación’s key cities, along with Barcelona and Madrid.
Building on five years of experience and success in the French capital, the Company has decided to apply the same growth model in London and Berlin, where it has been doing business since 2005 and 2006, respectively. The Company implements its progressive international expansion plan through organic growth, a low-risk strategy.
Examples of Renta Corporación acquisitions in Paris:
Victor Hugo I
This prestigious building is in the most luxurious Paris neighbourhood: the 16th Arondissement. This luxury residential property, surrounded by a magnificent 400 m2 garden, features outstanding architecture and exceptional ornamentation from the 19th century. This Hausmann style building was erected in 1913; it too is in the prestigious 16th Arondissement. Its 12,000 square metres, spread over 8 floors enclose a spectacular 400 m2 garden.
Victor Hugo II
Renta Corporación was founded in 1991 and is dedicated to the purchase, refurbishing and sale of real estate properties. Since 2000 it has been one of the fastest growing companies in the sector and is one of Spain’s leading real estate companies. In 2004 Renta Corporación welcomed British private equity group 3i as one of its shareholders. Renta Corporación started trading in the stock market (continuous market) on 5 April, and was the first company to go public in 2006. It operates in Spain, with offices in Barcelona, Madrid, Seville, Malaga and Palma de Mallorca, in France with an office in Paris, in the UK with an office in London and, starting this year, in Germany.
Renta Corporación
The Company turned a net profit in 2005 of €32.5 million, with the goal of doubling this by 2008. Renta Corporación’s net profit target for 2006 is in excess of €44 million.
