TM Real Estate Group ended 2020 with a €161M turnover

• TM Real Estate Group plans to develop more than 3,000 homes by 2023, guaranteeing its presence in areas with the highest demand for residential tourism.

• The company ended 2020 with a turnover of 161 million euros, 18 ongoing projects, and 1,138 homes under construction.

Torrevieja, 20th July 2021 – TM Real Estate Group, a leading company in the residential tourism sector in Alicante, specialised in the construction and development of holiday homes along the Mediterranean coast, maintained its position as an industry benchmark in the holiday home market in 2020 with 1,138 homes and 18 ongoing projects in Alicante – Costa Blanca (68%), Almería (16%), Mallorca (8%) and Costa del Sol (7%).

Despite the direct impact of the COVID pandemic on both the development activity in Spain and the hotel business in Mexico due to the high dependence of both countries on the tourism sector, the group’s turnover reached 161 million euros, (8% less compared to last year), while its EBITDA stood at 24 million euros, (11% less than the previous year).

The company, for its part, has a solid portfolio of 1 million m²of land to develop 12,000 homes, the result of its continued strategic investment policy. The latest operations carried out in 2019 amounting to 42 million euros in the Costa Blanca and Mallorca served to guarantee the business plan for 2020-2023, which includes the development of more than 3,000 homes, thus consolidating the group’s presence in areas with the highest demand for residential tourism.

From a marketing point of view, until the state of alarm was decreed, TM Real Estate’s first quarter aligned with the objectives established in the strategic plan. However, the closure of commercial offices and restrictions on national and mainly international travel has affected the levels of sales and deliveries for the year despite the fact that, both after the lifting of the first state of alarm and the successive de-escalation, activity has recovered to pre-pandemic levels.

At the end of the financial year, the company delivered 468 homes and sold 272 units to a mostly international customer profile (74%), compared to 26% to Spanish nationals. These international clients were from more than 27 different nationalities led by Belgians (16%), followed by Germans (13%) then Poles (7%) in Spain; and by Americans (57%), Mexicans (31%), and Canadians (11%) in Mexico.

The group’s main objective in 2020 was to keep people safe, strengthen financial solvency, and reorient the business plan in order to guarantee the continuity of operations and services in all its business lines.

In Spain, the company opted to continue with all the projects that had been started to fulfill said commitments, as well as to adapt and reorient its production based on stock and sales forecasts. Furthermore, throughout 2020, the company firmly committed to starting the works for iconic projects such as Flamenca Village in Orihuela Costa, in February; Sunset Cliffs in Benidorm, in September; and Es Molí des Trenc in Mallorca, in April. This was a strategic decision that has allowed the company to guarantee demand in the short and medium-term, as well as to achieve the pre-sales objective in the first months of 2021.

Despite the complicated situation in the tourism sector, the company made strides in the hotel business in Mexico and opened its third hotel in the Riviera Maya in July, The Fives Oceanfront Puerto Morelos, with an investment of almost 22 million euros. With this new addition to its portfolio, TM consolidates its presence in the country and its dedication to the hotel sector. However, despite the sharp decline in tourism across the globe, the relevant decision was made to keep the three hotels open throughout the year with minimal occupancy levels. This effort has helped the company to recover its activity levels much earlier in 2021.

In 2020, TM was very aware of its business commitment, focusing its efforts on combating the negative impact of the crisis on all its stakeholders. An advance of 8 million euros was approved to companies collaborating with the works in progress in Spain to inject liquidity and help preserve employment. From a social perspective, with a budget of 1% of net profit, more than 30 social projects were carried out in Spain and Mexico, benefiting 1,500 people. These include the food donation campaign in 11 municipalities of 4 Autonomous Communities in Spain and the opening of two soup kitchens in Mexico.

Outlook for 2021

The group, which plans to construct 1,215 properties during 2021, has started the year with 18 projects exceeding the pre-established pre-sales targets, a consequence of the significant reactivation of transactions following the end of the state of alarm, especially during the months of April, May, and June. Likewise, the company estimates that it will achieve a turnover of more than 200 million euros.

Highlights included its strong commitment to the online sales strategy and a commercial policy focused on consolidating proximity to the international market. TM Real Estate Group plans to open offices in Sweden, Poland, Belgium, and Germany, in order to be closer to its main markets.

In the words of Pablo Serna, CEO: “In the 1st quarter, sales have maintained a stable positive trend while, during the second quarter, we have sold more than we had forecasted, almost 65% of the target for this year. Despite the significant impact of the pandemic on our activity, we have demonstrated great resilience as a company as a result of the solidity of our business model, our operating structure, and our financial solvency.  We view 2021 with great optimism, but also as a year of transition. In addition to recovering pre-pandemic levels of activity and figures, we want to advance in fundamental levers such as digitisation, innovation, quality in customer service with the opening of offices in the main European markets, and our commitment to the environment.”

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