24 March 2020 – Brainsre.news
In light of the crisis caused by the coronavirus, the Socimi is postponing part of its capex program until next year: €60 million, which represents 40% of the total investment of €150 million that it had planned to spend on the refurbishment and development of buildings in 2020.
The real estate company has acknowledged that “the coronavirus crisis is impacting our portfolio of projects and so specific delays on some of them are expected,” in a statement sent to the National Securities Market Commission (CNMV). One third of the amount deferred corresponds to investments in the office and housing project that the company is working on in the Méndez Álvaro area of Madrid.
According to the listed real estate company, the impact of the coronavirus crisis on Colonial’s real estate activity, as well as on the economy in general, continues to be “uncertain and difficult to predict.” For this reason, the company has acknowledged that it has reviewed its investment criteria and policies “in accordance with a more prudent context”. However, it stresses that the company’s asset portfolio, as well as its current liquidity and solvency, allow it to “face and manage the situation in an optimal way”. Regarding its financial position, the firm explains that it has available credit lines and cash amounting to €2,000 million and net liquidity that covers “the maturities due over the next two years by more than four times.”
Original Story: Brainsre.news
Translation/Summary: Carmel Drake