Spanish property companies Colonial and Martinsa Fadesa reported a combined loss of EUR 6 bn for 2008 on the back of heavy revaluations of their real estate portfolios. Colonial, which is now controlled by its creditor banks, has posted a loss of EUR 3.98 bn in 2008, compared with a year-earlier profit of EUR 74 mln. The company said it reduced debt by EUR 1.6 bn in 2008 mostly through the sale of property assets. Colonial's rental activities currently make up for 85% of its business as the group continued to dispose of its land and residential development portfolio last year.
Spanish property companies Colonial and Martinsa Fadesa reported a combined loss of EUR 6 bn for 2008 on the back of heavy revaluations of their real estate portfolios. Colonial, which is now controlled by its creditor banks, has posted a loss of EUR 3.98 bn in 2008, compared with a year-earlier profit of EUR 74 mln. The company said it reduced debt by EUR 1.6 bn in 2008 mostly through the sale of property assets. Colonial's rental activities currently make up for 85% of its business as the group continued to dispose of its land and residential development portfolio last year.
Martinsa Fadesa, which went into administration last year, posted a net loss of EUR 2.47 bn from a year earlier profit of EUR 60 mln. Revenues dropped to EUR 626 mln in 2008 from EUR 1.21 bn a year before.
Martinsa Fadesa and Colonial are the latest property companies in the country to report heavy losses as the storm continues to batter the Spanish property market. Other Spanish companies which recently posted negative results include Reyal Urbis, Renta Corporación and Nozar, which is risking to be put into administration over unpaid debt.
