Spain's largest real estate company Metrovacesa has swung into the red with a net loss of EUR 41.5 mln in the first nine months of 2008 from a net profit of EUR 1.08 bn a year earlier. Total revenue stood at EUR 1.13 bn for the first nine months, up 70% on the EUR 666 mln figure reported in the same period last year. However, the Madrid-based firm said its nine-month results are not comparable with 2007 due to the separation process from its French unit Gecina.
Spain's largest real estate company Metrovacesa has swung into the red with a net loss of EUR 41.5 mln in the first nine months of 2008 from a net profit of EUR 1.08 bn a year earlier. Total revenue stood at EUR 1.13 bn for the first nine months, up 70% on the EUR 666 mln figure reported in the same period last year. However, the Madrid-based firm said its nine-month results are not comparable with 2007 due to the separation process from its French unit Gecina.
At end-September, net financial debt stood at EUR 6.99 bn, up from EUR 6.94 bn at the end of last year. Metrovacesa's published report focused on the nine-month results and did not give a breakdown of the performance in the third quarter.
The debt-laden property firm said that the group's portfolio was valued at EUR 12.19 bn at end-September 2008, down from EUR 12.87 bn a year earlier. The company expects that the valuation of its property portfolio will be impacted further by the liquidity squeeze in the year-end review.
The Sanahuja family, which owns over 80% of Metrovacesa, announced last week that it could exchange debt for more than 50% of its interest in the company. The Spanish family is facing almost EUR 5 bn in debt.
