Real Estate Companies Regain Investor Attention

27/06/2014 – Expansion

Yesterday´s interest shown by Colonial about Realia thrilled the real estate sector on the stock market. The company shot up by 10% reaching maximum levels in the last 35 months. At the end, the appreciation post 4.73%, though.

Colonial´s interest has been expressed in the middle of the sales of stakes in the property firm on the part of FCC and Bankia that jointly control 62% of it.

Colonial itself also jumped by 2.55%, pulling behind rise in values of other listed real estate specialists like Urbas and Inmobiliaria del Sur (appreciation of over 4.9%) and Quabit (+2.78%).

The robust movements provoked by the breaking news have given a firm foundation for good 2014 performance on the stock of Colonial which year-to-date gains 130.67%, Realia sells by 86.75% more, while Urbas grew by 32%.

Victor Peiro from Beka Finance assures that beyond the upsurges there stands hidden speculative bet of investors positioning to have better view on IPOs and mergers. “Experienced real estate firms confirm the time has come to return to the sector (…). In fact, certain asset prices in certain cities have already reached the rock bottom level”.

Listed real estate firms were one of the most crippled by crisis. Depression in activity brought many of them down to bankruptcy, while the others´popularity on the stock exchange dropped dramatically.

In spite of the growing interest in them, the companies may face troubles in holdings as great majority of them is held by banks.

Experts highlight that investment in listed realtors shall be considered long-term (min. 10 years).


Original article: Expansión (by A. Monzón)

Translation: AURA REE