Real estate companies: year zero.

The great listed real estate companies are focusing their efforts in something that goes beyond selling properties.

All these companies, which accumulated losses of more than 3280 million Euros in 2012, are immersed in various processes to assure their viability.

In this list, Reyal Urbis and Renta Corporacion stand out, as they have not reached agreements with their creditor banks and have had to present a creditor´s meeting. Rayet, a subsidiary of Quabit, has also recognized in court that it is unable to respond to the regular payments of the company.

Realia and Colonial are currently negotiating with their financial institutions. Regarding the first one, the agreement is nearly signed.

Once the refinancing has been approved, problems do not end for real estate companies. Although at a slow pace and with very broad timeframes, they need to find means to pay with once the invoicing business drops, mainly in the sale of properties, with direct competition from banks, who are the ones with the key to the financing within the sector.

If the invoicing dropped in 2012 due to the situation, things do not look much brighter this year. This is why these companies need to reinvent themselves in 2013, either through a patrimonial activity or with agreements to manage the assets from banks, a strategy already implemented by non listed real estate companies.

Source: Expansión

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