Spanish developer Urbis H1 loss jumps 874 pct
Monday, September 1, 2008 @ 9:26 PM
Spanish property firm Reyal Urbis said on Friday net losses in the first half jumped 874 percent percent to 332 million euros ($489.4 million) as paralysis gripped Spain's housing market and financing costs spiralled.
Reyal Urbis, one of Spain's biggest developers which formed through the merger of Urbis and Reyal in 2007, said revenue rose to 823 million from 624 million a year earlier as it sold off property. But financing costs were 191 million euros and the company also made provisions for 252 million euros due to falling property values.
Some 80 percent of Reyal Urbis sales come from the sale of residential properties and land -- a market that has slowed to a virtual standstill in some areas of the country after a 10-year property boom hit the buffers at the end of last year. House sales across Spain slumped 29.6 percent in June year on year, official figures on Friday showed.
The company's net debt, which totalled 5.8 billion euros a year earlier, fell to 5.5 billion.
The company also deals in rental of commercial property like offices, shopping centres, retirement homes and hotels, is majority owned by Chairman Rafael Santamaria Trigo.
Reyal Urbis had total assets of 8.1 billion euros at the end of the first half, down 13.7 percent from a year earlier. (Reporting by Ben Harding, editing by Richard Chang)
Source:
Reuters