Sacyr to Expand Testa Unit to Boost Profits, Finance Chief SaysCharles Penty
Spanish construction company Sacyr SA wants to rebuild its Testa Inmuebles en Renta SA unit to generate more earnings, Chief Financial Officer Fernando Lacadena said.
“What we’re proposing is to try to make Testa a bigger company than it is now and regain some of the scale that it previously had,” Lacadena said in an interview today in Madrid. “If we have more assets, logically we’ll be able to generate more earnings.”
Testa, which owns shopping malls, offices, hotels and parking lots, said on April 30 it would seek approval to issue new shares to raise funds for investment. Testa’s real estate investment assets dropped to 2 billion euros ($2.7 billion) in 2013 from 3 billion euros in 2009.
The Testa share sale is part of Sacyr’s attempt to strengthen its finances and prepare for growth, Lacadena said. The company raised 416 million euros in April by selling shares and convertible bonds to fund its strategic businesses and international expansion.
“At Testa we’ve done a lot of sales over the past seven years,” Lacadena said. “The use of the funds is basically to invest.”