Endesa Puts Euro 1 Billion Worth of Real Estate Assets up for Sale via Bolonia Real Estate
April 05 2006 - 11:36AM
Business Wire
Endesa (NYSE:ELE): -- Bolonia manages 140 million m2 of land with
more than two million m2 of land which can be built on. -- Sales
worth Euro 122 million were concluded in 2005. -- Projected sales
of Euro 250 million and land availability make Bolonia one of the
leading land management portfolios in Spain. -- The Balearic
Islands, Catalonia and Andalusia are its largest markets, with
emblematic projects in Palma de Mallorca, Barcelona and Malaga. --
More than 3,200 hectares of land have been restored, providing land
in especially valuable protected areas. Endesa (NYSE: ELE) will
obtain revenues of around Euro one billion from urban development
projects in several autonomous regions via Bolonia Real Estate, the
company created in July 2005 to manage its real estate assets,
primarily land. Prominent among current projects for their
emblematic value and their influence on the urban environment are
those in Palma de Mallorca (with 170,000 m2 of land which can be
built on), Barcelona, where more than 116,000 m2 of land are
available and which will be the most important project since the
1992 Olympic Games in the sea front of Barcelona; and Malaga, where
the 153,000 m2 of land on the city's seafront promenade will
radically alter the appearance of the area. Bolonia currently
manages around thirty projects in Catalonia, Andalusia, the
Balearic Islands, the Canary Islands, Galicia and Aragon. Bolonia
is introducing a model that goes beyond simply selling assets to
become involved in the research and development of the new use of
the land, be it in urban areas or rural settings. This ensures
integrated and sustainable development in the long-term, in line
with Endesa's sustainability policy, by acting in three areas:
environmental, social and economic Contribution of land to the
market The real estate assets managed by Bolonia are basically from
plants and installations (former power stations and generation and
distribution facilities, disused land and mines) which are no
longer of use; these are therefore being put on the market in an
orderly manner and in line with the aforementioned sustainability
criteria. Bolonia has so far identified and manages more than 140
million m2 of land in Spain; this is particularly significant at a
time when scarcity of land is one of the main factors behind rising
real estate prices. The land situated in Spain has potential
building space of more than one million m2 and could generate
revenues of Euro one billion by 2010. Bolonia concluded 11
operations in 2005 worth Euro 122 million, generating a gross
capital gain of Euro 105 million. In the five previous years,
Endesa sold assets worth Euro 686 million. The company expects to
carry out sales worth Euro 250 million this year; which, along with
its high availability of land, would make the company one of the
leading players in the Spanish real estate sector. Types of land
Bolonia manages two types of land according to its previous uses:
urban and rural. The aim in both is to add value to the land cycle
by generating the best project, as well as harmonising business
objectives with those of the governments and social agents.
Therefore, in both types of land (urban and rural), Bolonia's
management model goes beyond simple business diversification and
real estate business, becoming involved in the new developments
with the aim of creating value and, if appropriate, improving the
environment, promoting integration with the regions in which it is
present. Urban assets Its portfolio of urban real estate assets is
in excellent locations in both established coastal and urban areas
and developing mountain areas. In each case, Bolonia (which draws
on Endesa's expertise in civil works, engineering and urban
development) has a team that specialises in the technical and urban
development of the land, and works in partnership with
professionals and experts in town planning at a regional and local
level. The aim is to achieve perfectly integrated urban
developments that generate high added value - both from a quality
and economic perspective - for the urban environment of which they
form part. The most emblematic examples are Palma de Mallorca,
Barcelona and Malaga. Bolonia also manages a portfolio of 83
million m2 in Latin America; primarily in the city of Santiago de
Chile. Management of natural environments In locations where the
project is being carried out in a natural environment, Bolonia aims
to make the most appropriate use of the land, conserving and
improving the environment by recovering spaces of high ecological
value such as former rubbish dumps, mines, water resources and
agricultural substrates. The aim is also to add value to the land
once its original use has been restored beyond simply dismantling
the facility that had occupied the site until then. Bolonia's sites
in natural areas are ideal places for scientific and environmental
research. In this area land drainage, agriculture, reforestation
and low-impact renewable energy projects are identified for
subsequent development; one such project is Belmez, where former
rubbish dumps are to be replaced by a photovoltaic energy plant, or
other sites where agreements have been negotiated with
environmental organisations. Endesa's experience in the field is
backed by initiatives such as the more than 3,200 hectares of land
recovered in mining areas and the Huinay Foundation (Chile), a
project promoting sustainable development and the preservation of
biodiversity in a 35,000-hectare natural area that is managed by
its subsidiaries Enersis and Endesa Chile. More information:
www.boloniarealestate.es * This document may contain certain
forward-looking statements regarding anticipated financial and
operating results and statistics that are subject to risks and
uncertainties as well as to material risks, changes and other
factors which may be difficult to predict, including, without
limitation, those factors described in the Documento de Registro de
Acciones of Endesa filed within the Comision Nacional del Mercado
de Valores and in the Form 20-F of Endesa filed within the
Securities and Exchange Commission, both for the fiscal year ended
December 31, 2004. For all of these forward-looking statements, we
claim the protection of the safe harbour for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995.
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