If developing land in southern Gran Canaria is already approaching half a century, imagine Morocco.
Montebalito, the real estate developer with roots in southern Gran Canaria, is going through a bittersweet moment. Despite closing the first half of 2025 with a net profit of €960.000—a 55,93% increase over the same period last year—the company has been forced to accept the expropriation of a strategically valuable piece of land in Morocco, carried out under Article 33 of the Moroccan Constitution.
This land is located in the Tangier area, a key element in the company's international expansion. The valuation was revised upwards last year, generating extraordinary income that is no longer present today.
The firm, specializing in real estate development, generated revenue of €3,4 million between January and June, 78% more than in 2024, with a gross margin of €1,46 million, growing by 102,9%. Its most profitable business remains pure real estate, which represents 85% of sales, while the rental division experienced a slight decline of 0,57%, affected by the decline in the Dominican Republic.
At the same time, net operating income (EBIT) reached €2,1 million, an increase of 132,1%, although EBITDA fell by 77,3% to €222.000, precisely due to the absence of the extraordinary income linked to the Tangier expropriation. The company has managed to reduce its net financial debt by 7%, to €14 million, with an LTV ratio of 11,38%, one of the lowest in the sector.
Despite the loss of land in Morocco, Montebalito has focused on strengthening its portfolio in Spain. Recent projects include an 85-room hotel in Seville's Cartuja, an 11-unit residential complex at Plaza de Compostela 17, the urban development of land in Vigo, and a 55-apartment complex in Las Palmas de Gran Canaria. This strategy demonstrates the Canary Islands company's ability to maintain growth, even in an adverse environment marked by expropriation decisions that limit its international expansion.
