Igsa Made €16.1M Net Profit on Sale of Hotel NH Center de Valencia in 2016

5 December 2017 – Valencia Plaza

Inmobiliaria Guadalmedina SA (Igsa) closed 2016 with revenues of €36.8 million, a figure that was almost identical to the amount recorded in the previous year, according to the annual accounts filed by the company in the Mercantile Registry.

Nevertheless, the firm did see a significant change in its profits, which rose from €2.7 million in 2015 to €12.8 million last year. According to explanations provided by Enrique Ballester’s company in its annual accounts, that difference was due to “the sale of a hotel that the company had leased as well as to the sale of several offices”.

The hotel in question was the Hotel NH Center de Valencia, located next to the Nuevo Centro shopping centre. That property was divested during the first quarter of 2016 for an amount that the real estate company did not disclose on its balance sheet.

“We have recognised a net profit of €16.1 million and the reversal of an impairment associated with the properties amounting to €399,000”, reports the company. In other words, Igsa sold the hotel and the aforementioned offices for €16.1 million more than the price at which it had recognised them on its balance sheet.

The hotel has 192 rooms, including 20 superior category rooms, a couple of junior suites and one suite, according to details provided by the hotel chain on its website.

Original story: Valencia Plaza (by Dani Valero)

Translation: Carmel Drake