Our Chair Ángeles Serna appears on the February cover of the Economía 3 Magazine, with an interview in the “Leaders” section.
20.02.2018 I Economía 3
“Benidorm has been a strategic move that will determine the Group’s activities”
The Chair of TM Real Estate Group comes from the world of economics and is one of the most influential women in the construction sector. The nature of this family-owned company led to a generational change that started some years ago and accelerated after the death of its founder, José Luis Serna. With the entire Family Office structure now in full operation, its five companies form a powerful business group that has managed to steer a steady course in difficult times and is now starting to reap the rewards in Mexico and Benidorm—two strategic areas for 2018.
– The company was founded by your father in 1969. It is now approaching its 50th anniversary after having overcome a couple of crises, especially the last one. What decisions were key to the group’s survival in this last stage?
– The values of our father, of course, among which are the reinvestment of profits and self-financing—meaning that in recent years we were independent when making decisions, not needing to rely on banks—, as well as our strong customer focus, excellent locations, internationalisation and passion for a job well done.
– The land purchases made in that stage were largely made using your own resources. Is this the path to follow?
– To the extent that this is possible, of course, although we do not rule out external financing for occasional projects or situations.
– In hindsight, can you describe the entire change process at TM Real Estate Group from 2012 up to the present time?
– Fortunately, our father, José Luis Serna Almodóvar, laid the foundations for the transition from the first to the second generation long before leaving us, with the signing of the family charter and implementation of the governing bodies. From this viewpoint, despite his departure creating a huge vacuum, we have been able to follow in his footsteps in the management of all areas of the family company: property, family and management, in order to preserve the business legacy.
– What has your appointment as Chair meant to you? Is it a decision for a limited period?
– Satisfaction and responsibility, although the support from my siblings, who are all in the general management of the Group’s different business areas, has been and is still fundamental. At the moment the by-laws do not set a date in this regard. It is not a rotating chairmanship, if that is what you are asking.
– As a family company, which part was the simplest to undertake and which was the most complex when establishing the final structure of the holding company?
– In reality there was nothing complex in terms of the decision, given that it is a very common structure to guarantee the continuity of family companies. Although, of course, the time and resources dedicated to corporate change are the most difficult. One of the wisest decisions was the creation of the Family Office and Corporate Governance area for the management of the transformation and professionalisation.
– What is your assessment of 2017? In figures.
– 2017 has been a key year for TM, with earnings exceeding the forecasts set out in our business plan. The year ended with sales close to 750 units and 24 developments in progress throughout the Costa Blanca, Costa de Almería, Costa del Sol, Murcia and Mallorca, representing a portfolio of 1,605 properties in progress and a consolidated turnover of approximately EUR 222 million.
It has also been a key year in the Group’s expansion and growth process with the inauguration and opening of our second hotel in Playa del Carmen, Mexico, “The Fives Downtown Curio by Hilton” and the purchase of 165,000 m2 of land in Benidorm. This important transaction has increased the target number of properties we will be developing in the coming three years, 2018-2020, which stands at 4,250 units, placing us among the leading property companies in terms of the number of properties forecast nationwide.
– Have the targets been met in Spain? In Mexico?
– Not only have we met the established targets, but in 2017 the Group grew its business in both Spain and Mexico with a very considerable increase in the number of properties delivered, more than 900 units, which places us in the top spot nationally according to the latest statistics published, and a sales rate of 62 properties monthly. The Group’s turnover has also grown by 44% in Mexico and around 45% in Spain. All of this allows us to state, without any doubt, that we are well positioned to grow and make the most of the new opportunities in the coming years.
– Our main target for 2018 is to maintain sustained growth in Spain, consolidate both the Group’s organisation and its structure and grow our international presence.
Have the targets been met in Spain? In Mexico?
– Not only have we met the established targets, but in 2017 the Group grew its business in both Spain and Mexico with a very considerable increase in the number of properties delivered, more than 900 units, which places us in the top spot nationally according to the latest statistics published, and a sales rate of 62 properties monthly. The Group’s turnover has also grown by 44% in Mexico and around 45% in Spain. All of this allows us to state, without any doubt, that we are well positioned to grow and make the most of the new opportunities in the coming years.
– Are we looking at a third consecutive year of growth?
– Yes, 2017 confirmed three years of growth for the business both nationally and internationally.
In your opinion, what factors have been key to achieving this?
– On the one hand, I would highlight the wide range of products adapted to different customer segments, in terms of both the price and the features of the developments. Our offer ranges from luxury complexes such as “Sidi by TM”, which overlooks San Juan beach, for those who seek the utmost exclusivity in a beautiful setting, to residential complexes that are excellent value for money, surrounded by all the services and excellent transport links, such as “Terrazas de Campoamor” in Orihuela Costa (Alicante). On the other hand we have the product design, amenities and communal areas of our residential complexes, designed and created to offer a global purchasing experience, as well as their excellent location in strategic areas along the Mediterranean coast.
Our reputation, commercial assistance, personalisation and after-sales service complete our differentiated offer.
– The Group has a strong presence in the south of the Mediterranean Arc, which is its natural territory. Has there been better sales performance in this area? Should we assess other areas?
– In general, we think that the second home property market is very active. There is a reason why Spain is one of the most attractive countries for investment, and this is seen in the good results in terms of sales to non-resident customers in almost all areas. However, this year, sales have been very strong in Mar de Pulpí, Costa de Almería, with this residential complex leading sales, especially to Belgian customers.
– You have undertaken several significant initiatives in the Alicante province, especially in Benidorm. Will this be your focus for 2018?
– The transaction in Benidorm has undoubtedly been a strategic move that will determine the Group’s development activities not only in 2018—when it is expected to start building the first 275 properties—, but also in the coming years. Of course, we will continue to develop our projects in Mar de Pulpí, Mallorca, Murcia, Costa Blanca and Costa del Sol.
– To develop this land, it has been mentioned that you are open to selling part of the land purchased in Poniente beach. Are we talking about partners or out and out sales?
– The land in Benidorm has different uses: hotels, residential, commercial and institutional, so we are open to listening to proposals, although our intention is to follow our strategic plan and make a commitment to the city since we have had an exceptional market response to our recent projects in the area, such as “Sunset Drive”.
We have talked about the different types of property that TM Real Estate Group is placing on the market with its 24 ongoing developments. From the results it seems that this strategy is working, but what are TM’s objectives?
– To continue working for our customers, adapting to their needs, creating unique residential complexes where the exclusive communal areas, amenities and personalisation of the properties are a common denominator that continue to make it stand out from the other companies in the sector. We mainly offer properties in high-rise apartments, but there is also a market more interested in semi-detached or detached houses. Therefore, we choose one type or another depending on the area and the market.
– What is the customer interested in at the moment?
– Although the price, location and qualities continue to be determining factors when deciding to buy a property, in our case the TM customer values the company’s reputation and solvency, its after-sales service, as well as all the other advantages we offer through our “Happy Homes” and “Club TM” customer loyalty programmes.
