Real estate companies and developers listed on the Spanish stock exchange chalked up a record EUR 111 bn of debt at the end of last year, an eight-fold increase on the EUR 14.43 bn registered in 2001, according to the latest report from the country's stock market regulator CNMV.
Real estate companies and developers listed on the Spanish stock exchange chalked up a record EUR 111 bn of debt at the end of last year, an eight-fold increase on the EUR 14.43 bn registered in 2001, according to the latest report from the country's stock market regulator CNMV.
Spanish real estate firms and builders account for as much as 42% of the EUR 266 bn in total debt registered by non-financial firms last year. According to the report, the increase in debt is mostly due to the strong mergers and acquisitions activity in the real estate sector. Real estate firms in the country have been pursuing an aggressive acquisition strategy, purchasing stakes in French and Spanish real estate firms as well as in energy companies.
The report cites Metrovacesa's takeover of Gecina for EUR 3.8 bn, Inmobiliaria Colonial's buyout of SFL for EUR 1.5 bn and Realia buying SIIC for EUR 590 mln as examples of last years' buyouts of expensive French firms. In Spain, the real estate sector has seen more consolidation with the acquisition of Grupo Inmocaral by Colonial, and Astroc buying into Rayet and Landscape.
