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Spain’s Sacyr Seeks to Sell Vallehermoso Developer Unit

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Oct. 1 (Bloomberg) -- Sacyr SA, a Spanish builder, plans to sell its Vallehermoso property-development unit after receiving expressions of interest from potential buyers.

The board decided at a meeting yesterday to put Vallehermoso up for sale, the Madrid-based company said in a regulatory filing today. None of the expressions of interest have been confirmed yet, Sacyr said. Shares rose as much as 5 percent in Madrid trading today.

“If there are people willing to buy this asset, then it may be good news,” said Juan Carlos Calvo, an analyst at Banco Espirito Santo in Madrid with a buy rating on Sacyr. “It carries a lot of debt and doesn’t generate much revenue.”

Spanish banks and companies are seeking buyers for real estate assets as the country’s bad bank steps up efforts to sell assets backed by soured property loans. Vallehermoso, which has a stock of 620 homes, accounted for 1.2 billion euros ($1.63 billion) of Sacyr’s 8.4 billion euros of net debt in June and had a first-half net loss of 40.1 million euros on sales of 56 million euros.

Sacyr was up 4.2 percent at 3.55 euros as of 12:59 p.m. in Madrid. The shares, which more than doubled this year, are down from a peak of 54 euros in November 2006.

To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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