1/04/2014 – Invertia
Director of Mutua Madrileña, Ignacio Garralda, decided not to miss a trick to invest in the real estate at slashed prices. The insurance company is scanning market in search for opportunities. On arrival of international vulture funds, Garralda assures that ´we won´t allow them to grab everything´.
Most of the property possessed by Mutua are offices, however now the firm seeks fast capital gains from buy-to-sell scheme in lower-luxury-level zones. Thus, instead of buying property along the Castellana Street or surroundings, it will head out of the area. (…).
Garralda would rather be cautious and because so he signed an agreement with its lenders, Bankinter and Banca March, assuring that credit granting will never exceed €50 million.
(…) Half of the sector intends 8% for investment, while Mutua Madrileña raises the amount to 24%.
In spite of slump in prices, exclusiveness of Mutua´s portfolio served as an armour. In 2008, its real estate property was valued at almost €1.67 billion, whereas at the end of 2013 the assets were worth €1.46 billion (by €198 million less). (…) ´We appraise the property in our balance each year and it turns out that the majority of the units is located on the Castellana Street in Madrid´.
(…) Garralde defends Sareb, that lost €261 million last year. As a shareholder, Mutua convinces that (…) ´Sareb brought about considerable gains due to decrease of risk in Spanish economy´.
Original article: Invertia (Luis Aparicio)
Translation: AURA REE