Tag: loss

Quabit Recorded €6M Loss In H1 2015

17 August 2015 – Expansión

The real estate company Quabit recorded a loss of €6 million during the first half of 2015, compared with a profit of €62.3 million during the same period in 2014. According to management, the company’s earnings performance during the first half of 2014 was positively affected by the operations linked to its debt restructuring program.

Quabit has indicated that the loss recorded during H1 2015 reflects the “state of transition” in which the company currently finds itself and is the result of “limitations that have existed in recent years surrounding the launch of new projects, due to the crisis in the sector, and the difficulties involved in obtaining funding”.

Since restructuring its debt, Quabit has started to resume its activity, with projects in Zaragoza, Boadilla del Monte (Madrid) and Guadalajara, which now “need to undergo a period of maturation” before they will be reflected in the income statement.

The extraordinary impact of the debt restructuring is also reflected in Quabit’s turnover, which amounted to €4.1 million between January and June 2015, down by 91.8% on the same period last year, when the real estate company recorded revenues of €50.4 million.

EBITDA and debt

The company’s gross operating profit (EBITDA) was negative during H1 2015 (€5.8 million) compared with €71.6 million the previous year. Net debt with credit entities amounted to €355.4 million at the end of the first half of 2015, the same figure as a year earlier.

As at 30 June 2015, Quabit held a stock of 305 homes, compared with 281 homes at the end of 2014, up by 8.5%.

Original story: Expansión

Translation: Carmel Drake

Acciona Hires Morgan Stanley To Sell Its RE Arm

20 July 2015 – El Confidencial

Acciona has decided to translate its words into action and accelerate the sale of some of its assets to clean up its ailing accounts. And, to that end, the energy, construction and service company has entrusted the sale of its real estate division to Morgan Stanley, the US bank that closed some of the largest property-related transactions during the real estate boom.

The holding company, owned by the Entrecanales family…has appointed Morgan Stanley, which is led by Luis Isasi in Spain, to list or sell its property-related assets, which were valued at €1,042.6 million at the end of 2014, according to Grupo Acciona’s own accounts. Based on appraisals performed by Savills Consultores and the Instituto de Valoraciones, the portfolio would have a price of €712 million, with land being the largest single item.

Nevertheless, other sources close to the group say that the book value of all of the real estate assets – which include several hotels, university halls, office buildings and 900 homes for rent in Madrid – may reach €1,500 million. “They may sell off the portfolio in parts because some of the businesses have nothing to do with each other”, said Morgan Stanley.

Morgan Stanley is going to sound out the market to decide which is the best option – i.e. whether to launch an IPO through a Socimi or to find a buyer that would take on the whole business. The operation will be similar to the one recently closed by Sacyr for its subsidiary Testa, which was acquired by Merlin Properties, for just over €1,800 million. (…).

With this decision, Acciona begins the divestment of its non-strategic businesses, which it announced at the beginning of the year after recording the worst results in its history. The group owned by the Entrecanales family, which recorded losses of €1,972 million in 2013, managed turn things around in 2014 and make a profit of €185 million, thanks to cost saving initiatives, the suspension of investments and the sale to a third party of its international energy business – this improved trend has continued in 2015 to date. (…).

Of the sales that the company announced at the beginning of 2014 – Bestinver, Trasmediterránea, real estate and energy – only the last one has taken place and then only partially. This has prevented the group from reducing its debt, which remains very high and is even growing (€5,300 million net at 31 March 2015).

Original story: El Confidencial (by Agustín Marco)

Translation: Carmel Drake

Colonial Repeats Its Sales And Records A Profit Of €492m In 2014

2 March 2015 – Expansión

An extraordinary year for Colonial.

The real estate group closed 2014 with a profit of €492 million, following the loss of €547 million it recorded in 2013. The key driver behind the turnaround in its results was the deconsolidation of Asentia, the subsidiary into which the company grouped its toxic assets. Colonial’s assets were also revalued, by 9.6% in comparable terms, to €5,757 million, which also had an effect on the income statement.

The group’s turnover amounted to €211.48 million, down 0.8%, although in comparable terms, revenues increased by 3.2%.

Colonial’s share price decreased by 2.53% in trading on Friday, to close at €0.655.

Original story: Expansión

Translation: Carmel Drake