A GREAT GROWTH AND SUCCESS FOR SEASIF HOLDING IN 2016, FOLLOWING THE PREVISION AND STRATEGIES OF CEO FRANCO FAVILLA, A TALENTED AND DIVERSIFIED ORIENTED BUSINESSMAN.
Franco Favilla interview: “The results after the First Semester of 2016 growth of 8%, have demonstrated strong reinforcement of the group, as we opted for a diversification of investments and projects, but we focused on the stable markets and the right sectors that currently are divided as follows: 30% Real Estate, 30% Refined Products, 30% Professional Insurance and 10% Conservative Investments as short term bridge, especially in the French market, that brought us a high satisfaction.
The success of the holding’s investments diversification has led Seasif to consolidate its corporate assets, and today, at the end of the year, the results generated the expected returns that we anticipated and substantial capital revenues of: 5% on Real Estate Development, 7% on oil refined products, 6.5% in the insurance sector which enjoys such returns today due to the past technological innovation investments. The broader result came from equity bridge invested in real estate on short term luxury operations that, despite only 10% of the investments, generated very surprising results of + 3.5%.”
The winning formula for CEO Franco Favilla is to diversify, diversify, diversify!
The encouraging of short term conservative investments and abolishing everything that determines costs without bringing any benefit.
SEASIF GROUP HAS FOCUSED ON INVESTING IN ECONOMICAL STABLE MARKETS WITH STRONG GROWTH AND NICHE LUXURY MARKETS, HIGHLIGHTING THEM AS REFUGE INVESTMENTS. WHAT WOULD YOU RECOMMEND TO INVESTORS?
Franco Favilla interview: In my entrepreneurial life, I had the gift to predict and anticipate markets trends and to understanding and identifying the areas of investment where in fact our services were needed and I kept creating synergies that gave me some operational advantages. Entrepreneurship is passion for me, I’ve never been a mono sector or mono product entrepreneur, my motto has always been, diversification of investment, which has allowed my companies to cooperate and help each other in the unfortunate deep financial crises times such as those experienced in recent years, and this is also the advice that I always give to those who want to invest.
Over the years I have bet on some difficult markets such as Serbia or Albania, on other emerging countries such as the UAE, Romania, or the African countries. Markets are changing with a very high speed and the technology has brought the sudden acceleration in areas where I had sometimes chosen to pay additional costs only for attendance, waiting for better times; in some cases I had to suspend activities and then re adapt them to the market demand and needs, completing the commitments my group made with determination and hard work to achieve the initial targets.
In Serbia, for example, I started with a knitting factory that over time has become an industrial storage. In Romania the Real Estate market appeared unstable a few years ago and too young to get major investment attention, but we reevaluated it positively when the performances have positively surprised us.
In France we are doing business since 2005 and in 2015 we saw a record growth in the real estate investments in Ile-de-France, northern France region, where is located the French capital, Paris; as many as 30 billion has been engaged in purchases of buildings, mainly commercial, residential and hotels. This year we have seen Paris become the new European business center of investments, with a growth fostered in part also by the Brexit.
Knowing very well the Parisian real estate market, that is very stable, I can say that our short-term strategies are the most efficient because the liquidity gives us access to various opportunities in the luxury market where we buy independent buildings, we renovate and resell then, in bulk or fractionated floor by floor, with substantial performance on the invested equity.
WHAT ABOUT THE SECTOR OF REFINED PRODUCTS DISTRIBUTION? HOW WAS 2016 FOR SEASIF?
Franco Favilla interview: 2016 brought the most remarkable success, in the refined products industry, which is an important part of our activities, and has allowed us to achieve maximum achievements for a minimum capital invested: in fact this market in the recent years has slowly grew, and the stock prices of refined products have convinced us to sell to the market our buy option and repurchase them later once the price has returned to acceptable values.
The consequence of this strategy was the reach of favorable prices on fuels, which opened definitely the fuels distribution market with the conquering of significant market shares: for example, we passed from a turnover of EUR 1.5 million 2015 to contracts reaching 30 Million in 2016, with 200 million target for 2017. It’s obvious that this is a success that reflects the developments in the fuels market, creating advantages for my distribution business.
IN THE INSURANCE SECTOR THE MAJOR GROUPS ARE UNITING IN ORDER TO LIMIT THE OPERATING COSTS, AND ARE INCREASING THE DISTRIBUTION FOR INSURANCE POLICIES. HOW IS YOUR BUSINESS, WHO IN FACT IS A BOUTIQUE FOR PROFESSIONAL POLICIES, HANDLING THE COMPETITION WHICH IS GETTING TOUGHER?
Franco Favilla interview: In 2005 I decided to invest in an insurance company; the first few years I have invested a lot without getting an immediate return, but today, after eleven years, the company holds a very important portfolio of constant and well selected professional customers that continues to require our policies year after year. After the difficult beginning, the company has proved to be solid and serious, and this generated a considerable growth each year. Thanks to a responsible business model choice of the general manager, a man of great professional quality, we have focused on technological innovation that has allowed us to consolidate the foundations of our business. The numbers speak for themselves: more than 15 million annual collection with a 25% performance, not bad when you consider that there are far more important groups then us who can barely do 3% in the same industry.
HOW DO YOU EVALUATE THE REAL ESTATE MARKET IN DUBAI? CAN YOU CLARIFY THE REAL SITUATION OF DONNA TOWERS PROJECT?
Dubai Real Estate market suffered the “slip” caused by the financial recession and the lack of experience of the government institutions in managing such critical situations.
Concretely it promises an important evolution, but it will still take several years before we see it stabilized and with a consolidated and solid growth.
Answering the second part of the question, there is a lot of misinforming that circulated by speculators and unprofessional journalists; I want to say that Seasif Group concluded
several projects in Dubai and all properties have been properly delivered.
Donna Towers is a huge project from all points of view, we built two skyscrapers of 140 meters height, with a total built area of 105,000 square meters, that unfortunately was built in an unlucky period where the economic crisis took Dubai market to struggling and to a latter financial crash of important dimensions. Of course we had to slow down the completion works.
Our priorities have however been and will continue to be also in the future, those to protect our customers, and our property, and this generated additional delays, unpleasant but necessary to maintain the high standing of the project; In fact, in order to maintain a stable value of the property, we have exerted on local authorities, our right to receive what they promised in terms of the infrastructures in the area.
Another important consideration is that 50% of the clients have failed to fulfill their obligation to solvency and this resulted in an important economic loss for our company causing us to pay the missing amounts necessary for the completion.
In absolute honesty, I must say that me and my group have worked hard and will continue to do so until the works will be completed.
Next year, if all goes as agreed with the Government of Dubai, Donna Towers will be finalized to our satisfaction and our customers.