Grupo Ferrovial, Spain's second largest construction company, is considering bids for its real estate unit which has been valued by analysts at EUR 1.4 bn-2 bn. A spokesperson for the company confirmed three offers had been received but no talks have been started with a potential buyer. Ferrovial declined to name the bidders or put a value on its unit that builds and sells houses and business parks, as well as trading in land. The division had revenues of EUR 647.8 mln in the nine months to September.
Grupo Ferrovial, Spain's second largest construction company, is considering bids for its real estate unit which has been valued by analysts at EUR 1.4 bn-2 bn. A spokesperson for the company confirmed three offers had been received but no talks have been started with a potential buyer. Ferrovial declined to name the bidders or put a value on its unit that builds and sells houses and business parks, as well as trading in land. The division had revenues of EUR 647.8 mln in the nine months to September.
The sale is being considered to help reduce the EUR 34 bn in debt Ferrovial incurred when it purchased BAA, the British airport operator, in August. In addition, the growth in house prices has began to slow from an average of 15% per year since 1999. Ferrovial has also expanded in airport baggage handling, rail maintenance and toll roads in the US to prepare for the possible slowdown in domestic housing and construction, Bloomberg reported.
