Debt-laden Spanish property company Inmobiliaria Colonial is to sell a 84.4% stake in France's Societe Fonciere Lyonnaise (SFL) to reduce its EUR 9bn debt. The Spanish group announced at end March that it has hired an international bank to begin the disposal process.The sale could fetch up to EUR 3bn.
Debt-laden Spanish property company Inmobiliaria Colonial is to sell a 84.4% stake in France's Societe Fonciere Lyonnaise (SFL) to reduce its EUR 9bn debt. The Spanish group announced at end March that it has hired an international bank to begin the disposal process.The sale could fetch up to EUR 3bn.
The move follows the announcement at end-March that the takeover offer for Colonial launched by a Dubai sovereign wealth fund had fallen through after the Spanish real estate company failed to reach an agreement with its creditors. In a statement, Colonial also ruled out any further agreements with the Dubai fund ICD. In light of the aborted deal, Colonial decided to sell its entire stake in SFL instead of just 33% as announced earlier in March. Colonial added that it will continue to evaluate any other measures to pay off debt.
Its main creditors, Banco Popular and La Caixa, announced this week in a statement to the CNMV that they are considering the option of buying into the company. La Caixa also said that it had bought the remaining 19,500 m2 it did not own in its headquarters in Madrid from Colonial for EUR 85mln.
Other Spanish companies that are fighting for their existence include Martinsa Fadesa which recently reached an in-principle agreement with its banks to add a EUR 362mln down-payment to its EUR 5.1bn debt mountain. The Catalan Habitat group of the Figueras family likewise succeeded in avoiding bankruptcy after reaching a similar agreement with its principal creditors. A group of smaller players like Cosmani Inmobiliaria, Prasi, Llanera and Lábaro have asked for an extension of the redemption period. Both Llanera and Labero estimate their debts at over EUR 600mln.
