Warren Buffett starts real estate agencies in Spain

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

• The Berkshire Hathaway and Larvia alliance will open 40 real estate offices.
• The billionaire will explore entering other markets in the sector.

Billionaire Warren Buffett is entrenched in the Spanish real estate market

Through the alliance with the Larvia company, now open in Madrid and Barcelona through the joint venture Berkshire Hathaway HomeServices Larvia. The firm is positioned in the intermediation of luxury, second-hand and new construction housing, with the objective of its business plan to reach 40 offices in 10 years. But it's only his first step.

Berkshire Hathaway HomeServices, Buffett Real Estate agency, is in full international expansion and has decided that our country is one of the first markets to operate. "Spain is a point of attraction for international investors," said Bruno Rabassa, CEO of Larvia and the new joint venture. He currently has an agency in Madrid, another in Barcelona and another in the luxury urbanization of La Moraleja. For next year it plans to double the number of offices.

The idea of ​​the firm is to have a dozen establishments in these two capitals and expand throughout the Mediterranean, Balearic and Canary Islands. The company aims to bill five million euros in 2020, and in five years will seek to multiply that income by 12.

Although this movement is only Buffett's first approach in Spanish real estate, according to company officials. "We are the spearhead of Berkshire Hathaway in Spain," Rabassa said, because according to this manager, the billionaire is open to entering other segments such as commercial, hotel, logistics or retail. Michael Jalbert, Executive Vice President of Buffett Real Estate, said they will rely on their Spanish partner to value other businesses in the country.

Gino Blefari, World President of Buffett Real Estate, acknowledged that his bet is "long term" and his vision is not opportunistic. From the company they believe that the residential sector has solid foundations. "There is no bubble," Rabassa said. "We are not worried about background noise," he added of a possible slowdown in the sector.

In July, both real estate companies had already announced their alliance to start working together in Spain where until now Larvia operated alone. This real estate consultancy, specializing in the intermediation of the sale of premium and luxury homes, has Rabassa as CEO. In turn, the real estate company belongs to Grupo Petrus, an active promoter for 55 years. In its history they have built 6,000 homes and urbanized more than 12.5 million square meters.

The joint venture is negotiating with large developers, Rabassa said, to also include in its portfolio new housing offer, currently made up of some 300 second-hand assets distributed between Madrid and Barcelona.

Buffet, the third richest man in the world with a fortune of 81.5 billion dollars according to Forbes, operates under its holding Berkshire Hathaway. Since this company invests in dozens of companies, from all sectors, such as Apple, Amazon, Coca-Cola, Duracell, Kraft Heinz or United Airlines. It also has its own brands as an insurer and, in this case, in real estate through Berkshire Hathaway HomeServices, after acquiring HomeServices in 1999. Its fundamental business is real estate brokerage, but they also provide other financial services linked to the purchase of housing .

The alliance with Larvia in Spain is the fifth that Buffett makes in a year and a half in the world to grow outside the United States. He previously partnered with Rubina Real Estate in Berlin; Kay & Co in London; Maggi Properties in Milan, and Gulf Properties in Dubai. The billionaire's firm known as the Oracle of Omaha has almost 50,000 agents and more than 1,400 offices. The company generated more than $ 114.5 billion in transactions during 2018.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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