President's letter

MAKING GOOD CHOICES

In my previous letter I mentioned the widespread desire within the real estate sector to confirm its positive evolution. Two years have passed and during this period I can confirm that the consolidation of the real estate sector is a reality. There are no more periods of uncertainty like those experienced several months ago. Now its progress can no longer be questioned, on the contrary, it is now necessary for all actors involved in the sector, including public administrations, to provide the means for this improved situation to be sustainable.

The great danger we face is that between everyone involved in the sector, we speed up the market to a level of pre-crisis in a shorter time than in the previous economic cycle. That would condemn the whole sector to the same or an even worse situation than the one recently experienced. 

Although it is true that there is not a uniform situation within our country and we can clearly differentiate the metropolitan area of Barcelona from that of the rest of Catalonia, these effects are spreading into other areas. It is a process consistent with the rules of the free market.

If geographically the situation is not uniform within Catalonia, neither is the evolution in the market of the different real estate products that show different degrees of recovery. Thus, buying and selling property shows a good level of activity, contrary to what is happening with rental housing that is losing market share at an alarming rate. Investments in buildings in search of profitability by investment funds, REITs, Family Offices, etc., have greatly invigorated the investment sector and are influencing the real estate sector in general. The confidence in the real estate market is favored by the low yields of the real estate capital goods. However, within the field of Corporate Real Estate, the subsector of industrial and logistics warehouses maintains a positive level, as well as that of offices, with commercial premises on a more discreet level.

The most desirable scenario would be a smooth but continued improvement that would allow a sustainable growth of the entire sector. This situation is not easily attainable since some of the recent actions may not be particularly positive. Past negative experiences are close enough to make us reflect and prevent false shortcuts.

For FORCADELL, the crisis was a challenge. From the outset, our main objective was to strengthen our Company during this period, so that at the end of the crisis, both our internal organization and our position within the market, were more solid than at the beginning. This goal has been fulfilled successfully.The consolidation of the positioning of FORCADELL in the market is a natural consequence of improvements in relation to the other competing agents. The great commitment to growth needs strong structures. FORCADELL, at the end of the current fiscal year will have a network of eleven offices.

In the first issue, the positive effects of the new organizational structure are clearly obvious. The dynamization of the Company led by the General Management Area has become a decisive element in spirit of constant improvement of the whole staff, especially the management team. Undertaking greater responsibilities by part of its members as well as a greater integration of the different services, have united, strengthened and globalized the different work teams.

But growth should not be only geographical and of volume of management; it should also be of quality so that it has future. Growth also represents the improvement of traditional services and Research & Development to offer new services, sheltered under the help of new technologies. This is the FORCADELL challenge for 2017 and next fiscal years.

The investment in the development of new projects is important and necessary so that the Company’s prospects are placed in the long term. Only in this way will companies in general, and particularly those of services, be able to seek future viability.

FORCADELL is on this road. We have always emphasized the spirit of improvement as one of the important elements that define our corporate culture. And it is this culture that is enabling us to make lasting progress.

 

Presidente i Consejereo Delegado

President and Managing Director