Spain's largest property company Metrovacesa said it has swung to a loss of EUR 178 mln in the first half of 2009 from a profit of EUR 131 mln a year before. The sharp decline mainly reflects higher expenses, write-downs on a number of projects and the impact of the negative results from its French affiliate Gecina, which reported a loss of EUR 53 mln. Metrovacesa has a 26.9% stake in Gecina.
Spain's largest property company Metrovacesa said it has swung to a loss of EUR 178 mln in the first half of 2009 from a profit of EUR 131 mln a year before. The sharp decline mainly reflects higher expenses, write-downs on a number of projects and the impact of the negative results from its French affiliate Gecina, which reported a loss of EUR 53 mln. Metrovacesa has a 26.9% stake in Gecina.
The Madrid-based company, which has total debts of EUR 6.1 bn, said its revenues reached EUR 294 mln in the first six months of the year, down by 33% on last year's figure (EUR 440 mln). Commercial property sales in the first half totalled EUR 82 mln and include the disposal of Castellana 257 in Madrid for EUR 36 mln and the sale of the San Lázaro hotel in Santiago de Compostela.
Metrovacesa, which in July reached an agreement with UK insurer L&G to cancel the Walbrook property project in London, said it will now focus on the development of 11 projects, of which 10 in Spain and one in France. Its portfolio was valued at EUR 10.4 bn at end-June 2009.
