Adolfo Domínguez sold one of the jewels in its real estate crown on Friday: a property located in the best shopping district of Barcelona. According to a statement made by the company to the stock exchange, it sold the building located at number 32, Paseo de Gracia, for €45 million, which had been on the market since at least November. As such, it pocketed more than the company’s entire value on the stock exchange as a result of the deal. On Friday, the company had a market capitalisation of €29.2 million, as its shares were trading at €3.15.
“From the amount obtained from the sale of the property, approximately €21.5 million has been used to repay and early cancel some of the company’s financial debt, whereby reducing its bank debt to €2.1 million following the operation”, said the Company to Spain’s National Securities Market Commission (CNMV). “The net financial position was expected to amount to around €21.7 million at the date of the operation. It is estimated that the company’s net profit from the sale of the property amounts to approximately €36 million”.
The property on Paseo de Gracia, 32 is where the brand has its flagship store in Barcelona, renowned for its striking, classical wood, window displays. The company has not revealed the name of the buyer or whether it will continue to operate from the store as the tenant.
The fashion house lost €16.91 million during the first nine months of this financial year, which represents a 64% increase in its losses with respect to the same period in 2014. The company’s turnover during this period, which ended in November, amounted to €72.05 million, down by 11% compared with the first nine months of the previous year.
Original story: El País
Translation: Carmel Drake
Translation/Summary: Carmel Drake