Spain's Renta Corporacion Real Estate has successfully completed the sale of EUR 380 mln worth of assets to a consortium of 17 financial institutions. As part of the agreement, the company has also refinanced a EUR 500 mln debt facility agreed with the creditor banks in February 2007.
Spain's Renta Corporacion Real Estate has successfully completed the sale of EUR 380 mln worth of assets to a consortium of 17 financial institutions. As part of the agreement, the company has also refinanced a EUR 500 mln debt facility agreed with the creditor banks in February 2007.
Renta said the divested portfolio consists of land and buildings including its headquarters in Madrid. The new financing agreement with the banking syndicate is for a new seven-year syndicated loan of EUR 254 mln. Renta said that the first two years (2009-2010) will be a 'grace period', with increasing annual repayments from 2011 to 2015.
Renta has made 36% of its total headcount redundant since mid 2008 as part of a programme to reduce costs. Staffing levels fell from 139 staff in June 2008 to just 89 people at present.
Peer property companies Realia and Reyal Urbis are also in negotiations with creditors to refinance their corporate debt. While Realia is understood to be in advanced talks to refinance almost EUR 900 mln of debt maturing this year, Reyal Urbis confirmed last week it is talking to its creditors about modifying its business plan shortly after having agreed on a EUR 3 bn refinancing deal.
