Six banks have taken control of Metrovacesa, Spain's largest property company, through a debt-for-equity swap with its majority shareholder. The Sanahuja family, which held 81% of Metrovacesa, has handed over a 65% stake in the troubled company to creditor banks BBVA, Banesto, Popular, Sabadell, Santander and Caja Madrid for a price of EUR 57 per share. The Spanish family is retaining an option to buy back the stake for the same price by 2012.
Six banks have taken control of Metrovacesa, Spain's largest property company, through a debt-for-equity swap with its majority shareholder. The Sanahuja family, which held 81% of Metrovacesa, has handed over a 65% stake in the troubled company to creditor banks BBVA, Banesto, Popular, Sabadell, Santander and Caja Madrid for a price of EUR 57 per share. The Spanish family is retaining an option to buy back the stake for the same price by 2012.
Following the restructuring, Vitalino NafrÃa Aznar of BBVA has been appointed as the group's new chairman. Prosegur's chief Eduardo Paraja Quirós will assume the position of group's Chief Executive Officer, replacing Garcia de Ponga who stepped down last week.
In a statement to the Spanish stock market regulator on Friday, Metrovacesa said it booked a net loss of EUR 738 mln in 2008, which compares to a profit of EUR 1.255 bn a year before. Net financial debt amounted to EUR 6 bn at end-December, down from EUR 7 bn at end-2007 mostly as a result of the sale of the HBSC property in London. Net Asset Value per share dropped by 26.4% over 12 months to EUR 45.17 at end-December 2008.
In 2008 the company completed investments of EUR 334 mln, significantly below 2007's figure of EUR 2.73 bn. It said it will continue with its programme to divest non-strategic assets in a bid to optimise the group's portfolio and raise cash. Net disposals for 2008 amounted to EUR 697 mln. The company significantly cut down on its commercial development portfolio which now consists of five key projects, of which three office schemes, the Vilamarina shopping centre (bought in 2008 for EUR 120 mln) and a hotel and office property.
Revenues from housing sales fell by 31.6% to EUR 417.7 mln in 2008. A total of 1,420 homes were delivered last year, down from 2,197 in 2007. Metrovacesa said a total of 137 houses were sold in 2008, an 85% drop on 2007's figures. Currently, the company's residential development portfolio consists of 2,463 houses, of which just 657 have been pre-sold. The company hopes to sell the remaining 1,806 between this year and next.
Metrovacesa's shares fetched EUR 27 per share in early trading on Monday.
