February 2, 2018 / 7:39 AM / a month ago

Spanish property developer Metrovacesa cuts listing price

MADRID, Feb 2 (Reuters) - Spanish property developer Metrovacesa cut its listing price late on Thursday and delayed its stock market flotation by one day in a negative sign for one of the sectors that has attracted most investor activity in Spain in recent years.

The company, which owns the largest land bank in Spain, cut its listing price to 16.5-17 euros per share from 18-19.5 euros, it said in a statement to the market regulator, without giving a reason.

It will list on Feb. 6, it said, one day later than planned. The new listing price values the company at up to 2.57 billion euros, below its net asset value of 2.69 billion euros.

Residential construction in Spain is thriving with foreign investment pouring into developments in cities and coastal resorts, a decade after a property bubble burst leaving banks laden with developers’ bad loans.

House builder Neinor Homes listed last year, the first flotation by a Spanish residential builder in a decade.

Metrovacesa was taken over by creditors Santander and BBVA in 2009. The banks are selling stock in the company as part of the listing although they will remain majority shareholders.

Just under a fifth of its assets are in the northeastern region of Catalonia which embarked on an independence drive from Spain in October, plunging the country into its worst political crisis in decades.

BBVA, Santander, Deutsche Bank and Morgan Stanley are acting as the joint global coordinators and joint bookrunners for the offer.

Goldman Sachs and Societe Generale are acting as additional joint bookrunners, the company said in the statement. (Reporting by Sonya Dowsett; editing by Jason Neely)

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