The Perfect Moment to Invest in Real Estate Firms?

3/03/2013 – ExpansionPro

Investors aim at Spanish listed real estate companies. Last Friday, Colonial finished the day with the highest price that advanced by 19%, adding to the revaluation begun in 2013 to 57.6%.

Better rating of Spain by Moody´s and the optimistic outlook revive the sector. “Investment in the real estate and construction companies serves the Spanish economy´s reversal” points out CapitalBolsa. With such background, firms like Colonial, Urbas, Realia, Montebalito and Quabit register upsurge between 23% and 60%. Withal, one must remember that their quotation has been firecely penalized since the recession hit and the fact is still being reflected in the depreciation of between 80% and 99% in comparison with the 2007 scores.

Experts vow to differentiate between the truly promising companies for the future (like Colonial, Realia) from the ones noting down appreciation due to rumours and transient improvements. Last week Colonial announced deconsolidation of Asentia through stake reduction from 100% to 18.9%. By deed it meets terms and conditions set for the €500 million capital injection by Grupo Villar Mir, MoraBanc and Santo Domingo. (…). When it comes to Realia, on Friday it sold for €1.21, that is 42% above the target price (set at €0.70).

 The rest of the real estate firms have no linear listing and most of them reach prices below one Euro. (…).



Original article: ExpansiónPro (C.R., Lunes 3 Marzo 2014, pp 15)

Translation: AURA REE