ACS Gains €702 Million & Trims Debt by 14% in 2013

28/02/2014 – Expansion

ACS rediscovered the path of profits after having stopped the investment flow in Iberdola last year. The construction company gained €702 million in contrast to €1.928 million loss in 2012. Vast part of the income stems from international activity that added 86.3% to overall revenues of the company and from gains received for Iberdola´s product valuation.

The firm chaired by Florentino Pérez has not escaped unscathed when the electrical power reform hit. ACS preliminarily calculated the  cost to be borne over its wind and solar energy plants and established it at €199 million. The company´s profit fell by 0.3% and settled down on €580 million.

Hochtief, ACS´s German branch, contributed with €91 million. (…).

ACS´s turnover decreased by 0.1% to €38.373 million, while Ebidta was set at €3.002 million, 2.8% less than a year before. Spain constitutes 14% of all sales.

At the end of 2013, the company´s net indebtness was equal to €4.235  million (14.5% less than in 2012). (…). Throughout 2013, ACS issued bonds for €1.100 million.

Considering each business area separately, the construction division reduced its revenues by 0.4% and earned €29.559 million. International activity compensated the 23% domestic losses. Out of the €47.563 million portfolio of ACS, 93% of it is found abroad. (…).

In turn, the industrial area contributed with €7.067 million, while the environment advanced by 5.3% and generated €1.781 million. (…) The company was worth €26.6 per share yesterday (-0.6%).

 

Original article: Expansión (C. Morán)

Translation: AURA REE

Acciona Revises Accounts After Losing €1.972 Million in 2013

28/02/2014 – Expansion

Acciona shall carry out a “reinvention”. This is how José Manuel Entrecanales described the present state of his company, struggling to get over the impact of the recent electric power reform. Due to having lost €1.972 million in 2013 (compared to the €189 million profits drawn a year before), Acciona introduces drastic changes to protect the group´s “balance and liquidity”.

The most important assets in its portfolio are expected to be sold for up to €600 million and bring a powerful deleveraging. According to Expansion´s sources, the company intends for sale 49% of its foreign wind plant assets, around 2.300 megawatts distributed over 15 countries (55 assets valued at €1.000 million if debt excluded).

Lazard, named by Acciona to seek partners, has preliminarily chosen financial allies, mainly private equity and pension funds, such as Ontario Teachers, Borealis, Adia or BTG Pactual (Acciona´s partner in Aguas del Ter-Lllobregat). (…).

The hit of the reform cost the company €1.675 million and that later fueled impairment in equity of €2.000 million (€3.400 million after corections). When it comes to construction, the company paid for unsuccessful projects in Brazil and Poland €288 million, (…). Trasmediterránea brought €160 million losses. All these firms, including Bestinver, are first to divest in. (…).

 

Original article: Expansión (C. Morán)

Translation: AURA REE

House Prices Climb Up in Madrid, Canary and Balearic Islands

28/02/2014 – Expansion

Official statistics already begin to show a slowdown in the housing price slump that caused a 4% depression in 2013. Moreover, the value of flats rises in the three autonomous communities: the Balearic Islands (3.2%), Madrid (1.8%) and the Canary Islands (0.2%). The value of non-subsidized homes also goes up in Galicia, Ceuta and Melilla (+0.5% in all).

 

 

Original article: Expansión

Translation: AURA REE

NH Cuts in Loss by 84% to €40 million in 2013

28/02/2014 – Expansion

The NH Hotel Group sees the light at the end of the tunnel. In 2013, the chained obtained liquidity thanks to the Chinese HNA´s stake purchase, a bond issue of €500 million, general shareholding re-organization and debt refinancing. The improvement is reflected by the company´s performance sheets.

Last year, the NH lost €39.81 million that indicates 86.4% less than a year before. The cut-off could be made real through a sale of the Hotel Krasnapolsky in Amsterdam, provisions linked to asset impairment and restructuring of business in Spain and Italy.

The group´s Ebidta increased by 2.9% to €121.6 million and the revenues decreased by 1.4% to €1.260,4 million, due to the leave of hotels from its portfolio, minor sales of restaurants and the price drop-off. Spain added about 24.4% to sales.

In 2014, the NH foresees an increase of  between 3% and 5% in the RevPar (Revenue Per Available Room) and between 5% and 10% in the recurrent Ebitda. Moreover, the chain pledged selling assets for €125 million. On 31st of December, its debt exceeded €745 million.

Yesterday, the NH announced leave of Daoqi Liu from HNA who will be substitited by Haibo Bai and step down of the two advisors of Bankia. On the stock market, the NH depreciated by 2% to €4.52.

 

 

Original article: Expansión (Y. Blanco)

Translation: AURA REE

Quabit Welcomes Profits Back

28/02/2014 – Expansion

Quabit, the real estate company of Félix Abánades, has managed to reverse its outcome and gain €7 million in 2013, juxtaposed with the €77 million loss of the last year, due to having come to an agreement with refinancing institutions. The business value fell by 50% to €181 million.

 

Original article: Expansión

Translation: AURA REE

Husa Owes €150 Million to Ministry of Finance, Social Security & Suppliers

28/02/2014 – Cinco Dias

The economical troubles of Hostelería Unida, the biggest affiliate of the Husa Group, have deepened during last two and half a year and ended up in putting the company up for auction due to its €100 million debt. According to the latest available data, the chain chaired by Joan Gaspart owes €53 million to the Ministry of Finance and the Social Security, juxtaposed with the €17 million debt at the end of 2011. (…).

The mercanile judge who ran the trial on February 11th, gave the chain a month to present a complete inventory of all the property in its balance and a report from its creditors to whom Husa owes about €90 million.

Moreover, the group has got an €84.5 million debt with financial institutions. The amount soared up by 67% in comparison with the €53 million in 2011. (…). Thus, the companies with the most urgent payment are Sabadell, waiting for €18 million, Popular (€11 million), Instituto Catalán de Finanzas (€10 million) and CaixaBank (€7 million).

The Husa Group owns liabilities exceeding €230 million and assets valued at €50.7 million and €107 million mortgages on its property. (…).

Among the creditors of the chain´s debt there are its own workers, as Husa owes a couple of unpaid salaries to the staff of UGT, Masia Bach (now Barcelona Golf) and the Rey Juan Carlos I, managed by it before. (…).

 

 

Original article: Cinco Días (L. Salces / A. Perona)

Translation: AURA REE

Santo Domingo Takes Over 3% of Colonial For €11.5 Million

28/02/2014 – Expansion

Colombian group Santo Domingo bought 3% of Colonial´s social capital. According to the current market prices, the company paid €11.54 million for the stake.

By the deed, the group run by family Santo Domingo seals its interest in the real estate market, as the company is one of the three investors who pledged capital enlargement of Colonial in context of refinancing its debt.

The Santo Domingo are to inject €100 million and seize a 3% holding in the real estate firm. (…) The other two investors, namely Villar Mir (22.8% stake) and Andorran Mora Banc (7.5%) will input €300 million and €100 million respectively. (…).

Other shareholders of Colonial are: Coral Partners (14.7%), Goldman Sachs and Crédit Agricole (4.9% each) and Fidelity International (3.38%).

Presently Colonial is struggling to meet requirements imposed by the three investors before the capital injection. Thus, it is negotiating a loan of about €700 million to redeem a part of the existing, €2.100 million debt. Moreover, the company is preparing a sale of 20% of the French Société Foncière Lyonnaise (SFL) and is looking forward to shed its developer branch Asentia.

 

Original article: Expansión (EP)

Translation: AURA REE

Office Owners Optimistic About Market Recovery

27/02/2014 – Expansion

The most important office markets, namely the ones of Madrid and Barcelona, began the year 2014 with positive outlook for the future. Due to an increase in new space lease contract signing (assigned to Iberia and Vodafone large volume operations), grand owners concure the opinion that the renting prices will hit the bottom this year.

According to report drawn by Aguirre Newman, based on view of 120 executives from the sector, more than 70% of those experts believe the office prices will reach the rock bottom level. (…). Therefore, 30% of the owners observed a rise in the number of requests for information about vacant office spaces. As Ignacio Martínez Avial from the company notices, “firms do not grant long vesting period for lease payments anymore. First, the period will be cancelled and then, in 2015, the prices will climb”. He also points out that Madrid´s market will recover faster than the one of Barcelona.

However, the good news seem to be intended solely for the buildings located in primary areas of the cities. The owners fear that in other zones prices might plummet even more.

Nonetheless, 69% of the surveyed doubt in reaching the same signing performance as it was in 2007.

 

 

Original article: Expansión (R. R.)

Translation: AURA REE

Amancio Ortega Floats His €5.000 Million Real Estate Fortune

27/02/2014 – El Confidencial

Amancio Ortega astounds again. The foundator of Inditex is working on final arrangements to convert his real estate platform,  Pontegadea Inmobiliaria, into the largest listed real estate investment company (Socimi) on the Spanish market. The asset portfolio owned by Pontegadea is valued at more than €5.000 million. 

The striking decision has been taken in context of property reorganization started few years ago by Ortega. Once the Socimi listed, the Galician businessman will obtain public reference that will permit liquidity without the need of arbitration or deals on the secondary markets to his four heirs.

What is more, Ortega will be able to take advantage from the fiscal benefits offered by the Socimis. This way, Pontegadea Inmobiliaria will stave off the 30% corporate tax and pay only 27% cap in dividends to shareholders. Consequently, one of the most affluent men in the world will pay less taxes. (…).

Two years ago, family holding of Pontegadea Inversiones absorbed Gartler, that in turn was a holder of 50.1% of Inditex, while another 9.2% of the textile giant is in hands of Partler 2006, through which Ortega held a stake in the NH Hoteles.

According to sources from the market, Pontegadea will achieve its goal by assets division, among which emblematic buildings in Madrid, Barcelona, the New York, Chicago, Paris or London are found. (…).

In 2012, according to the data from registry, the company gained €164 million and obtained profits of €70 million. (…).

The Pontegadea Inmobiliaria Socimi will be of single-member nature, provided that its first capital enlargement will be a result of asset transfer. It will not be open for new flotation partners (…). The company´s debt is fairly small, barely exceeding €300 million. (…).

Amancio Ortega have been investing on the market for years. During last decade, he acquired the Torre Picasso in Madrid, Banesto´s old premises in Barcelona from BBVA and several other buildings outside of Spain (mentioned above). (…). Now the businessman is selling the chain Occidental Hoteles. (…).

 

 

Original article: El Confidencial (Marco Lamelas / Carlos Hernanz)

Translation: AURA REE

Realia Trims Debt by 84%

27/02/2014 – Expansion

During 2013, Realia lost €51 million, that is 84% less than in 2012. The result reflects debt forgiveness of €17 million, agreed upon during the last refinancing, and €64 million provisions injected to allow the debt repairment. Moreover, the company has not activated an €18 million credit yet.

The real estate firm gained €44 million in profits last year. Realia´s revenues, calling attention of Pontegadea chaired by Amancio Ortega, fell by 6.3% in 2013 to €203.4 million. The gross operating profit (Ebidta) was set at €103.3 million that is by 16.8% less than the previous year.

About 83% of the company´s activity is focused on property and renting buildings included in its portfolio that brought it €166.6 million profits, by 3.7% less compared to 2012. Its French branch SIIC from Paris contributed with €69.6 million.

Development and housing sales brought losses of 3.6% deepening the debt with €24.3 million. In 2013, Realia sold 131 dwellings (148 in 2012). Thus, at the end of the year, it possessed 806 finished units in its stock balance out of which only 37 were being sold.

In terms of Realia´s accounts, at the end of 2013 it had a €2.102 million debt (3% smaller than the amount from 2012). The value of its assets portfolio is estimated at €3.384 million, that means a depreciation of 4.3%, basically due to residential assets (15% of the portfolio) adjustments.

Recently, FCC and Bankia named Goldman Sachs to look for new partners for the company. (…) Realia owns one of the Torres Kio in Madrid.

 

Original article: Expansión (Europa Press)

Translation: AURA REE