Martinsa-Fadesa has put up to €1bn of land and part of its hotel business on the market in order to pay off its debts.
The Spanish listed property company is in talks with seven international funds, said chief executive Carlos Vela. It is not known whether it will be able to close the deal before the end of the year.
Such deals are increasingly common in Spain, where many companies are saddled with debt and lack finance. Many banks have closed to new business for the rest of the year after the credit crunch.
Martinsa-Fadesa is affected because it has more than 190,000 homes in its portfolio, and nearly 30m m² of land. Many in the market have described land as “toxic” because it is so hard to sell. The company has up to €5.5bn in debts, €3bn of which came from the merger between Grupo Martinsa and Fadesa Inmobiliaria earlier this year.
Martinsa Fadesa has ten hotels and is planning to build 40 more worldwide.
