Renta 4 | The financial newspaper El Economista features an extensive interview with Colonial’s chairman, Juan José Brugera, in which he reviews the company’s current situation and various aspects of the property market.
We would highlight the following aspects of the interview: 1) the gradual improvement in the oversupply in Barcelona’s 22@ district; 2) he leaves the door open to the possibility of exploring new geographical markets such as Germany or Italy (Milan); and 3) the logical possibility (due to the discount in the share price) of a takeover bid.
Assessment: We expect this news to have a neutral impact on the share price, although the fact that the company’s Chairman has mentioned the possibility of a takeover bid could slightly boost the share price in the short term. On the other hand, the opening up of new markets, whether through the alliance with Stoneshield for the area of innovation or scientific centres, or for the traditional office business, was already known and carries logical operational risks. We reiterate our OVERWEIGHT recommendation with a target price of €8.50/share.
