Spanish real estate group Realia has announced that it has reached agreement with its banks to refinance EUR 921 mln of debt which was due this year.
Spanish real estate group Realia has announced that it has reached agreement with its banks to refinance EUR 921 mln of debt which was due this year.
Realia also secured an additional EUR 100 mln credit facility. The cost of the facility is 200 basis points above Euribor. Under the terms of the agreement, the maturity on the EUR 1 bn in loans has been extended to end-December 2012.
The struggling group has total debts of EUR 2.3 bn and has switched its focus away from residential to commercial property to safeguard the future of the company following the bursting of the Spanish housing bubble.
In its financial report for the first half of 2009, Realia said its major shareholders, FCC and Caja Madrid, are to contribute a further EUR 100 mln.
Realia reported EUR 158 mln in revenues for the first half of 2009, down 40% on H1 2008.
