MADRID Jan 17 Spanish property developer
Colonial said it has received a debt restructuring and
possible takeover offer from its biggest creditor, a unit of
Brookfield Asset Management, ahead of an extraordinary
board meeting next week.
The proposal from Brookfield, which holds 46 percent of
Colonial's 1.8 billion euros ($2.4 billion) syndicated loan that
matures in December 2014, is a rival offer to a proposed
injection of capital announced two weeks ago by Spain's Villar
Brookfield said it has the support of 77 percent of the
company's creditors for its restructuring plan, in which it
would subscribe to a capital increase and become a "significant
shareholder" in Colonial, according to a statement from Colonial
Canada-based Brookfield said that it has enough capital to
launch an offer for all shares in Colonial, which would be
obligatory under Spanish law if it acquired a stake larger than
Brookfield had made a previous offer that was not accepted.
Colonial was taken over by its creditors after it struggled
with debt in the wake of Spain's 2008 property crash, when
dozens of real estate companies collapsed.
A deal to recapitalise the company would be the latest sign
that Spain's moribund property market has hit bottom. Property
prices have slumped some 37 percent since mid-2007, but rose on
a quarterly basis in the third quarter of 2013, the first such
increase in three years.
Brookfield said its plan to restructure and pay off
Colonial's debt involved selling off Colonial's entire stake in
French property firm Societe Fonciere Lyonnaise (SFL).
The rival plan, from Villar Mir in conjunction with funds
from Andorra and South America, involves retaining at least a 20
percent stake in SFL.
Villar Mir, a family-owned group controlled by the chairman
of Spanish builder OHL, on Tuesday said it has
purchased 19.33 percent of Colonial from Royal Bank of Scotland
, at a price of 1 euro per share, for a total investment
of 44 million euros.
Colonial shares closed down 7.14 percent on Friday at 1.3
euros per share.