Reyal Urbis losses deepen in stagnant Spanish property market
MADRID Nov 2 (Reuters) - Spanish real estate group Real Urbis, in talks to refinance 4 billion euros ($5.17 billion) of debt, reported a sharp drop in nine-month revenue with a net loss of 258 million euros.
Reyal Urbis, whose creditors include Santander, BBVA, Bankia and Popular, reported revenues of 108 million euros in the same period.
The company said on Friday that its descent into the red was on the back of the continued deterioration of Spain's housing market.
The hangover from a decade-long building binge fuelled by cheap credit has left Spain with more than half a million unsold new homes and scores of property groups going to the wall.
Prices have fallen by about 40 percent from their 2007 peak and evaporating consumer confidence in the recession-hit country makes offloading properties a difficult task for companies like Reyal Urbis.
Reyal Urbis last month said that it was negotiating with its creditors to refinance 4 billion euros of debt, adding that it might need to seek credit protection if it fails to reach an agreement.
Spanish banks lent heavily to property companies during the boom years, though they claim that their exposure to tanking property prices has been fully recognised through government-enforced writedowns on property assets.
The country's biggest banks, Santander and BBVA, reported large drops in nine-month profit because of real estate writedowns. ($1 = 0.7730 euros) (Reporting by Clare Kane; Editing by Paul Day and David Goodman)
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