On Wednesday, the Mallorca Chamber of Commerce hosted the conference Alternative Financing to Boost Growth in the Balearic Real Estate and Tourism Sector. Leading voices from the financial, tourism and real estate sectors in the islands, as well as from the public administration, discussed new investment formulas and access to credit in the hotel and construction industries. The event, organised by El Económico and Ultima Hora, the Bulletin sister paper, was supported by TQ Eurocredit and Implica Corporate Finance and Proinba.
After a welcome by the CEO of Grup Serra, Pedro Rullán, and an introductory speech by the director of El Económico, Pep Verger, the conference got underway with a first round table discussion focusing on alternative financing for sustainable construction and access to housing. The debate, which included the participation of the dean of the Official Association of Industrial Engineers, Mateu Oliver, touched on several issues, such as the introduction of industrialised construction (a method that consists of the prior manufacture of components in a factory for subsequent assembly on site) and the role of the public administration in streamlining all these processes.
The Regional Minister for Housing, José Luis Mateo, admitted that ‘the Administration must stop being an obstacle and become an ally’. In this regard, the Regional Minister emphasised that ‘we must ensure that the legally established terms for granting licences are complied with’. He also advocated a one-stop shop for all procedures.
Alejandra Marqués, Vice-President of the Association of Real Estate Developers, referred precisely to the unresolved issue of deadlines, while pointing out the difficulties of importing the industrialised construction model to the Balearics. ‘We would like it to be done here, but it is complicated: bringing materials from the mainland is very expensive, although this would be offset by the reduction in deadlines’. Mateo pointed out that Ibavi would not hesitate to commit to this method. ‘You can count on us for that.’
The managing director of TQ Eurocredit, Bernat Martínez, who would later moderate the second panel, explained that when it comes to financing projects, his organisation ‘analyses the developer and their track record, as well as a business plan that must be adapted to demand.’ In this way, he wanted to emphasise that ‘we look more at the project than in the rear-view mirror’ and advocated ‘taking risks, but controlled ones’ to provide a solution to the current serious housing situation.
For his part, Jaime Oliver, director of the OHLAB architecture firm, spoke of certifications as an element ‘that generates security in the financing entity,’ causing it to ‘offer better conditions.’ Likewise, with regard to housing construction, he pointed out the importance of ‘working with a clear study of demand.’
At the second round table, on alternative financing in the hotel sector, the managing director of Summum Hotel Group, Aurelio Vázquez, highlighted the ‘excellent moment’ the sector is experiencing, for which he predicted ‘the next 30 or 40 years of resounding success if things are done right’.
Juan Miguel Gil, Director of Tourism Business at Banco Sabadell, highlighted the current ‘investor appetite’ for this segment and how it is being combined with sustainability and digitalisation.
Luis Figueras, Debt Advisory Partner at Implica Corporate Finance, pointed out that the ‘last gasps’ of ICO loans to hotels due to COVID-19 are still being felt, which is leading to certain restrictions on aid for a sector ‘that dies if it stands still’. For his part, lawyer Gabriel Buades spoke about his role in these processes, based on ‘establishing flexible and clear mechanisms that provide security’ to investors and financial institutions.