Spanish property company Colonial posted a third-quarter loss of EUR 94 mln mostly due to a sharp devaluation of its property portfolio. The Barcelona-based firm, which earlier this year was partially taken over by banks after some of its shareholders failed to meet payments, said that the value of its real estate portfolio has fallen by EUR 1.12 bn, or almost 15%, since end-2007 to EUR 9.43 bn.
Spanish property company Colonial posted a third-quarter loss of EUR 94 mln mostly due to a sharp devaluation of its property portfolio. The Barcelona-based firm, which earlier this year was partially taken over by banks after some of its shareholders failed to meet payments, said that the value of its real estate portfolio has fallen by EUR 1.12 bn, or almost 15%, since end-2007 to EUR 9.43 bn.
The company is also reporting a nine-month net loss of EUR 2.47 bn, from a profit of EUR 357 mln for the same period last year.
In early September, the company signed a debt restructuring with its syndicated creditors to convert its financing facilities into a long-term debt of EUR 6.5 bn. As part of the deal, the firm will issue convertible bonds for a value of EUR 1.4 bn which will be mostly underwritten by the company’s creditor banks. Colonial’s net debt currently amounts to EUR 8.9 bn.
At the end of the third quarter the company shares were trading 89% down on 2007 levels at EUR 0.21.
