GE Real Estate Iberia, a subsidiary of US conglomerate General Electric, confirmed on Monday that it is 'studying a possible operation' involving troubled Spanish property group Inmobiliaria Colonial. However, the company added that no decision has yet been made, noting that this will depend on receiving the relevant financial, legal and fiscal information on Colonial's business, as well as initial approval from both sides.
GE Real Estate Iberia, a subsidiary of US conglomerate General Electric, confirmed on Monday that it is 'studying a possible operation' involving troubled Spanish property group Inmobiliaria Colonial. However, the company added that no decision has yet been made, noting that this will depend on receiving the relevant financial, legal and fiscal information on Colonial's business, as well as initial approval from both sides.
Trading of the Spanish property group's shares resumed on Monday at 12.00, following a suspension imposed by the Spanish stock market regulator CNMV ahead of GE's statement.
Colonial's shares have fallen 51% over the last month in the face of lowering property values and banks disinclination to lend in the current market crisis. Colonial's market capitalisation is EUR 2.45 bn but its debts have reached EUR 8.9 bn. According to Expansion GE's real estate operations in Spain currently contain EUR 1.5 bn in assets.
Colonial has been the centre of significant M&A speculation after the ejection of its chairman and core shareholders just before the New Year. The company had previously confirmed merger talks with French property group Gecina. A spokeswoman for Colonial denied knowledge of an approach by GE and stated that any bid would be a matter for shareholders.
