Enrique Banuelos, chairman of Spanish real estate company Astroc, said during a press conference in Madrid that the steep fall of Astroc's share price was mainly a consequence of the 'tremendous' revaluation of the company's stock over the last twelve months. Astroc's share price has gained more than 1000% since the company was listed on the Madrid stock exchange in June last year, but its shares plummeted as much as 37% on Monday and dropped another 9.48% on Tuesday to EUR 15.95.
Enrique Banuelos, chairman of Spanish real estate company Astroc, said during a press conference in Madrid that the steep fall of Astroc's share price was mainly a consequence of the 'tremendous' revaluation of the company's stock over the last twelve months. Astroc's share price has gained more than 1000% since the company was listed on the Madrid stock exchange in June last year, but its shares plummeted as much as 37% on Monday and dropped another 9.48% on Tuesday to EUR 15.95.
Analysts at merchant bank Kempen & Co said on Wednesday that the Spanish shares have been 'trading at high premiums to NAV incomparable to other European property companies' and that the sell-off is a result of a correction of inflated share prices in the country. The Spanish situation 'could weigh on the valuation of other European property stocks', said Kempen. The bank doesn't see buying opportunities in the Spanish market at present. Kempen does not expect the correction to influence Gecina, a French property company controlled by Spanish Metrovacesa.
The drop in Astroc's shares price hit other Spanish real estate groups on Tuesday such as Colonial (-12.62%), Fadesa (-11.06%), Inmoracal (-11.27%), Urbas (-13.24%) and Metrovacesa (-4.55%). On Wednesday, the Spanish market slightly recovered with Astroc gaining 2.19% to EUR 16.30, and Fadesa increasing by 0.88% to EUR 27.59.
