Colonial is waiting for the decision of Congress, which will tax Socimis: “We will analyze the situation and see what we will do”

Colonial advocates caution before voting in the Financial Commission of the Congress of Deputies on the financial package agreed by the government, whose celebration was planned for this Thursday but has been postponed until next Monday, the 18th, and which includes tax increases for Socimis (investment companies listed on the real estate market). Juan José Bruguera, president of the company, said: “We can only wait for a decision. We will analyze the situation and see what we will do“.

The head of the listed company Ibex-35 assured that the intention is “not to increase what has been said” for now, referring to a statement issued last Wednesday in which the changes proposed by the executive branch were called “very serious.” If approved, Colonial explained that “will review its investment strategy, place of business and legal structure

and will, if necessary, take actions that are in the best interests of its shareholders and investors, all with the goal that these potential actions will not have a negative impact on the community.”

The company completed the first nine months of the year with revenue 293 million euroswhich is 6% more than the same period last year, registering consolidated net profit 156 million, another 455 million than in the period from January to September 2023. The recurring result, which does not take into account asset values ​​and has caused Colonial to record significant losses in recent months, rose 6% year over year. “The results of the third quarter, in line with the half-year results and the results of recent years, are very solid and positive,” summed up the company’s CEO Pere Viñolas at a meeting with reporters.

From January to September Colonial entered into a lease agreement for a total area of ​​112,000 square meters.. “Commercial activity in the third quarter was very strong with 47,000 square meters leased. This is especially important because this quarter includes July and August, which were not very active and were better than the first and second,” Viñolas added. The company has 96% occupancy of your portfolio

which is 100% in Paris, 96% in Madrid and 78% in Barcelona, ​​a city in which the office market suffers from more vacancies.

Colonial Entry Criteria

In May, Colonial agreed to the criteriainvestment division of the La Caixa Foundation, entry into the shareholding Capital increase of EUR 350 million in cash and EUR 272 million in asset contribution. The latter included the transfer of three office buildings, two in Madrid and one in Barcelona, ​​valued at $108 million, as well as a portfolio of five residential rental buildings in several Spanish cities, including Madrid, Zaragoza and Malaga, whose valuations were increased. above 160 million.

After the bubble burst and the company’s recapitalization by creditor banks, Colonial did not invest in the housing sector, so The five buildings provided by Criteria are a rarity in the listing company’s portfolio.. From the first moment, the market knew that sooner or later Colonial would decide to transfer it to a third party, but Pere Viñolas denies this. “There is no specific strategy for the homes we take over from the Criteria. Nothing has been decided,” he explained during the meeting.

Following the closure of this operation, Colonial will launch a new asset remodeling plan called “Alpha”

by committing approximately €385 million to the rehabilitation and refurbishment of two properties in Paris: one in Madrid and the other in Barcelona. The company management reported this. In one they have already received a building permit, and the rest are proceeding “as expected.”.

The capital increase supported by Criteria allowed Colonial to increase its liquidity by €541 million to reach 3.443 million between cash and undrawn credit linesThe group’s net financial debt is 4.414 million, 450 million less than the last published figure, which showed Liability to Value (LTV) ratio of 36.5%.