May 19, 2024

Valores Industriales 2020 Net Income Soars Over 2019

Medellin-based real-estate developer and timber producer Valores Industriales announced March 31 that its full-year 2020 net income soared to COP$14.7 billion (US$4 million), up from a COP$102 billion (US$27.8 million) net loss in 2019.

Revenues also rose, to COP$26.5 billion (US$7.2 million), from COP$18 billion (US$4.9 million) in 2019.

Valores Industriales (VI) — a spin-off from Medellin-based multinational paper-products giant Grupo Familia – has two principal subsidiaries: “Reforestadora y Manufacturera Los Retiros,” a producer of timber and lumber mainly in the Medellin-metro “Oriente” area around the municipality of El Retiro, Antioquia, and the “Valores Inmobiliarios Cinco” developer of gated-community housing and parcel-lots mainly in the El Retiro area.

“Valores Inmobiliarios Cinco” had two significant project developments in 2020, including:

1. “Montealiso:” In fourth quarter of 2020, “the breakeven point was reached in the sale of lots and in December 2020 the parceling license was obtained for the execution of the Montealiso project, thus achieving the approval of business conditions for Alianza Trust for the start of the work that took place towards the end of December 2020,” according to VI.

2. “Montecerezo:” During 2020, the development of the second stage of the Fizebad Reserva gated-community (in rural El Retiro) included further designs and studies for the execution of the project.

“At the end of 2020, the pre-sales trust was established for the start of the commercialization of the project. During the year 2021, the license of Montecerezo is to be presented to the municipality of El Retiro for review and approval,” according to the company. “Although Covid-19 during the year 2020 decreased sales in the first semester, the second semester recovered positively, reaching a point of equilibrium and allowing the works to begin.”

Timber-Lumber Projects

Meanwhile, during 2020 VI completed the assembly and initial start-up of its “Aserrío” (timber sawmill) project in rural El Retiro. Lumber sales from this project “were very close to reaching the budget for the year despite the pandemic, in which [the sawmill] only stopped for 15 days until the Covid-19 biosafety protocol was completed, when safety equipment was acquired and staff were trained in care and protocols to follow,” according to the company.

Meanwhile, VI’s related “Finca los Bosques” forestry project continued to move forward, including “establishment and maintenance of plantations and the development of road infrastructure on the property,” according to the company.

Cortezza Commercial Building Update

On another front, VI’s “Cortezza” commercial office building on the Las Palmas highway just east of Medellin saw its leased space grow to 14,877 square meters during 2020, via VI’s participation in the “Azulgrana” joint venture.

Despite progress in leasing at Cortezza, the Covid-19 pandemic “generated a paralysis in the placement of new [leased] areas and the pandemic caused considerable unemployment in the building on the occasion of biosecurity measures, social distancing and work-at-home for all those positions that [lessee] companies could make. However, it was possible to make agreements with all tenants who have long-term contracts, thus enabling a [financial] balance-point for the business without considerable cost overruns for the project and its future viability,” according to VI.

As for VI’s separate investments in Colombian salt producer Brinsa S.A., VI boosted its share stake in Brinsa to 19.35% during 2020, up from 12.47% previously.

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