Letter CEO 2018-08-07T10:58:31+00:00

Welcome letter

Juan Carlos Bandrés


Dear Sirs,

The Grupo LOBE Annual Report comprises one of the key tasks which, for many years, has been given precedence by this company in the belief that obtaining the trust of those people and organisations who comprise its market is achieved through outlining the current situation of the company and commenting on its future actions.

Distilling the projects undertaken by the specialists involved over the course of this year can only be achieved when all of them are run according to the same guiding principle. In our case, that means that real estate developments improve in terms of design, profitability and provisions when the stages and processes that once were divided are now integrated and planned on a per-unit basis.

Looking back, the progress made from this viewpoint is substantial.

In recent years, Grupo Lobe has become a national benchmark for technology as applied to construction processes.

The contribution of our partners and the support from the Higher Centre for Scientific Research means our progress in this direction can be made rapidly. The result is that this company and its software tools and applications are now at the forefront of R&D&I for construction.

Mention must also be made of the successful implementation of the Passivhaus certificate by the Energy Efficiency and Sustainability department. At the start of 2018, Grupo Lobe delivered the second Passivhaus Institute-certified building in Spain, which, in turn, was recognised as one of the 5 most significant projects worldwide in Munich during the 22nd International Passivhaus Conference.

I strongly believe that the forward-looking commitment to this methodology will reap its reward many times over in the coming years, when purchasers acquaint themselves with the comfort, well-being and constructive quality of their new residence. It will grant us our own unique hallmark, distinguishing us from our competitors.

Equally, the challenge to instil our buildings with IoT or “the connected home” is gaining momentum – something we approach as a qualitative change in the user’s relationship with their experience of usage.

All of this comes together to create the concept of a LOBE residence, conceived as a product with its own personality, from which its future owner can expect certain provisions and qualities that are superior to what is on offer elsewhere in the real estate sector, whether in the realms of public sector or unsubsidised housing. Along these lines, the boost offered to the organisation by LOBE Architecture – currently comprising a multi-disciplinary team of 20 persons – and the Innovation Department needs to be underscored here.

Our results endorse the path chosen. Quite some time back, Grupo Lobe relinquished its role in the building process to organise itself in a semblance of other providers of industrial goods and services.

A residential development is optimised when its inception, commercialisation, design, planning and construction follow joined-up thinking, rather than simply seeking an aggregation of coordinated tasks as a consequence of the traditional development process. An example of this would be the clear advantages we are obtaining and those we anticipate in the future when our model is fully realised.

What is genuinely worth noting is that this is being achieved within a context of significant activity.

During 2017, Grupo Lobe managed a total of 18 residential developments, or about 1214 residences across 4 different locations (Madrid, Zaragoza, Valencia and Getafe), with a total sales volume of €335 million

a significant improvement on previous years. This is accompanied by attaining a nationwide status by right, and confirmation of the rightness of the path established in the company’s Strategic Plan for 2017-2020.

It has been especially satisfying for me to see the dedication and generous effort throughout the company to tackle such a large volume of work. My obligation in response to this has been to establish the bases upon which company growth is ensured and the possibility that, through this, these departments may develop to their full potential and ensure personal fulfilment.

In any case, we are aware of our limitations and of the risks which can be discerned within the Sector. The evident rises in land values and construction costs are factors that must be kept in mind henceforth, even more so in a context in which interest rates are more than likely to rise and have a negative impact on the margin currently allocated to cover the repercussion on our end customer. I am fully convinced that in this scenario a focus on continuous improvement in productivity and quality (as pursued during this period) is the right direction and will provide us with new opportunities to consolidate our business vision with, perhaps, even greater persistence and possibilities.

Lastly, I wish to express my gratitude to all the people and organisations that have worked with this company in their various ways.

Equally, my thanks go to the many customers who have entrusted us with a part of their life’s dream. To one and all, I would assure you that we shall continue to give the very best of ourselves.

Juan Carlos Bandrés