04. BUSINESS DIVISIONS

Property development: Vallehermoso

Residencial Cap Blau. Mallorca. Baleares.

Vallehermoso's reputation in real-estate development is backed by a solid 59 years of experience. Over more than a half a century, the Sacyr Vallehermoso Group's real-estate developer has established itself not only as the most experienced company in the sector in Spain, but also as a market leader with a winning business model. This model sets Vallehermoso apart from its competitors and keeps its business strong in spite of the slowdown currently affecting the market.

Vallehermoso's business activity is centred on the primary home market, mainly in cities of over 100,000 residents, where there is a real demand and a greater turnover of properties. Holiday homes account for only 10% of Vallehermoso's business, and are located in firmly established areas.

The Vallehermoso División Promoción (VDP) development division builds its houses mainly for the middle and mid-to-high socioeconomic segments. VDP also develops public housing, which accounts for 10% of its business.

Add to this strategy the skills, experience, and credentials of Vallehermoso's team of professionals, and the quality and market recognition of its name, it is easy to see how, despite unusually tough conditions, in 2011 Vallehermoso delivered more than a third of the homes for sale at 1 January 2010, or a total of 577 homes, with a value of 171.5 million of euros. In 2011 the division booked total revenue of €179.60 million of euros, including land sales for 1.35 million of euros and services for 6.71 million of euros.