Construction magnate Rafael Santamaria (pictured) holds the majority stake of 70% in Reyal Urbis, the firm owing money to creditors such as Santander, BBVA, Bankia and Banco Popular. The real estate company’s portfolio was valued at 4.2 billion euros in June 2012. Reyal Urbis will continue to operate as stipulated by insolvency laws in Spain, if a judge approves its petition. The company plans to keep Santamaria as leader. The real estate magnate stated he still hoped the firm would be able to strike a deal with creditors.
Reyal Urbis had until February 23 to either reach a debt restructuring agreement with the banks or file for insolvency. The early petition might be the result of their proposal of 3.6 billion euros was rejected by creditors according to sources quoted by Reuters. Spain’s stock market regulator also suspended the trading of Reyal’s shares on Tuesday, after the stock had recorded a 99% decrease since June 2007, closing at 0.124 euros yesterday.
Other than money to creditors, Reyal Urbis also owed almost 900 finished homes at the end of 2011. The firm also has 8 million square meters of development land and another 237,000 of commercial property comprising of offices, shopping centers, industrial property and hotels.
Reyal Urbis adds to the list of dozens of real estate companies which have gone belly up in Spain as house prices fell 40% since peak year 2007. As the country still struggles with depression, prices are expected to continue to drop.
Property management currently operates in a very aggressive and constantly changing realm. However, some key…
Real estate professionals lead busy lives, so finding better and more efficient ways to do…
Buying a home has long been considered a quintessential part of the American dream. Owning…
A roundup of some of the top real estate professionals in the Rocky Mount, North…
Making the decision to join a real estate agency or purchase a home is a…
Interest rates have been rising so fast that many buyers who signed contracts to purchase…