Spanish property company Reyal Urbis is planning to 'temporarily' halt most of its development activities as part of a new debt refinancing proposal with creditor banks. In a statement last week to the Spanish stock market regulator CNMV, the company said that the measure is part of its strategy to reduce costs. Projects in an advanced stage of development will be continued, it added.
Spanish property company Reyal Urbis is planning to 'temporarily' halt most of its development activities as part of a new debt refinancing proposal with creditor banks. In a statement last week to the Spanish stock market regulator CNMV, the company said that the measure is part of its strategy to reduce costs. Projects in an advanced stage of development will be continued, it added.
The company, which has yet to reach a refinancing agreement with banks, confirmed earlier media reports that it is asking its creditors for a grace period on its debt and interest payments. Reyal Urbis, with EUR 4.8 bn of debt, has asked to freeze payments on its debt until the end of 2012. It also applied for a bridge loan to guarantee the execution of its business plan in the coming years.
In October, the troubled Spanish developer put some of its trophy assets on the market in a move aimed at raising capital. The company hired JLL and Aguirre Newman to sell EUR 300 mln worth of assets, including the ABC shopping centre in Madrid's famous Serrano street, and its Urbis Centre de Pozuelo business park in Alarcón near Madrid.
