Ismail Clemente, the chief executive officer of Merlin Properties, one of Spain’s Ibex-35 real estate leaders, voiced a wish for a pact between the two dominant parties, PP and PSOE. He told a media group that after the next elections he would like to see a national project agreed upon by the main parties, allowing them to move in a common economic direction and govern Spain with a clear economic mindset.
Clemente used Portugal as a comparative example, where the left-led government implemented liberal economic measures. He recalled that Portugal slid close to economic collapse during the previous crisis, but the European Union intervened just in time. Spain, in his view, avoided the brink but did not escape the trial completely. At an event organized by actives and El Periódico Extremadura, sponsored by the Spanish Film Commission and JTI, he offered these reflections this Wednesday, noting that while conclusions from the past are not drawn, the country managed to climb back from the cliff without needing rescue.
In a caption accompanying a photo, Martí Saballs, who leads economic information at Prensa Ibérica, stands with Ismael Clemente, CEO of Merlin Properties. The image credit acknowledges Andres Rodriguez.
The Extremaduran executive highlighted that Merlin Properties’ home region already shows stronger signs than in recent years. He pointed to energy as the primary differentiator for Extremadura and argued that energy abundance could attract electro-intensive industries with a foothold there. He cited tile and steel processing as examples of sectors that would gain a competitive edge if they operate in the region.
economic uncertainty
Clemente stressed that despite volatility in financial markets, it does not automatically spill over to individuals. The risk will arrive eventually, perhaps more slowly for households. For the moment, consumer spending remains robust, with tourism and dining illustrating ongoing confidence.
He forecast that a downturn would materialize when monetary conditions in Europe tighten. Central banks have been conducting what he described as an experiment in monetary policy aimed at cooling demand without triggering a recession. Over the past two decades, expansive money supply has shaped the macro picture, and a change in that trajectory will alter the game. He warned that what unfolds in the coming months will be driven by developments in France and Germany rather than Spain alone.
The Future of Merlin Properties
Clemente outlined Merlin Properties’ seven-year plan through 2030. He anticipated that roughly 55 percent of revenue would come from the digital economy, including logistics assets and data centers, while around 45 percent would derive from rents from offices and shopping malls. At present, logistics accounts for about 20 percent of the income statement, with data centers under construction, and the company intends to steadily shift from an analog economy toward a digital one.
The Merlin CEO rejected the idea that Merlin would engage in a large corporate operation in the near future. He noted that several Spanish companies are consistently trading on the market, making large mergers unlikely. He cited a hypothetical merger with Colonial as not advantageous because it would dilute focus on the expanding data center and logistics sectors, potentially increasing the weight of the office portfolio to about 80 percent.