Martinsa-Fadesa, S.A. was one of the main

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...

and

construction Construction is a general term meaning the art and science to form Physical object, objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Pr ...

groups in

Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , i ...

before the crash of the

Spanish property bubble The Spanish property bubble is the collapsed overshooting part of a long-term price increase of Spanish real estate prices. This long-term price increase has happened in various stages from 1985 up to 2008. The housing bubble can be clearly divi ...

. It was based in

Madrid Madrid ( , ) is the capital and most populous city of Spain. The city has almost 3.4 million inhabitants and a Madrid metropolitan area, metropolitan area population of approximately 6.7 million. It is the Largest cities of the Europ ...

. In 2007, Promociones y Urbanizaciones Martín, S.A. (Martinsa) merged with Fadesa Inmobiliaria, S.A. (Fadesa) to create Martinsa-Fadesa. The company went in to

administration Administration may refer to: Management of organizations * Management, the act of directing people towards accomplishing a goal ** Administrative Assistant, traditionally known as a Secretary, or also known as an administrative officer, admini ...

on 15 July 2008 after failing to pay off

debt Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. The ...

History

Fadesa was founded at the end of the 1970s in

A Coruña A Coruña (; es, La Coruña ; historical English: Corunna or The Groyne) is a city and municipality of Galicia, Spain. A Coruña is the most populated city in Galicia and the second most populated municipality in the autonomous community and s ...

. It specialized in the development of great projects of protected house. In 1993, its activity outside Galicia begun, initially in Castile and León and then in the rest of communities of Spain. At the moment, the firm is present all over the Spanish territory through twenty delegations and more than fifty

points of sale The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice f ...

. In 1999, Fadesa expanded internationally for the first time, entering the

Portuguese Portuguese may refer to: * anything of, from, or related to the country and nation of Portugal ** Portuguese cuisine, traditional foods ** Portuguese language, a Romance language *** Portuguese dialects, variants of the Portuguese language ** Portu ...

market, and in 2000 it opened its delegation in

Morocco Morocco (),, ) officially the Kingdom of Morocco, is the westernmost country in the Maghreb region of North Africa. It overlooks the Mediterranean Sea to the north and the Atlantic Ocean to the west, and has land borders with Algeria t ...

. At the international level, it participates in projects like the touristic resort of Saīdia,

with a surface of 300,000 square meters. It is also present in a few Eastern European countries such as

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and

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. At the end of 2006 Fadesa achieved sales of €1.281 billion. On December 14, 2007 Fadesa merged with Martinsa, another

and

company, through an

IPO An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

Financial difficulties

In 2007 Fadesa sold 36% less houses than in 2006, and its debt increased to €5.153 billion due to the crash of the

. On July 14, 2008 Martinsa-Fadesa failed to acquire an additional €150 million in

credit Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt) ...

to renegotiate €4 billion of its debt. The company lost 70% of its stock value in two days and was advocated to file for bankruptcy in Spain's biggest ever corporate default. The firm subsequently presented a labor force adjustment plan which would result in the loss of 23% of its employees. In March 2015, the company filed for bankruptcy, holding assets worth €2.4 billion ($2.7 billion) with debts worth €7.0 billion, making its collapse one of the biggest bankruptcies in Spanish history. Trade of the company stocks were abruptly suspended, leaving no chance for its investors to unload them. The liquidation of the company started the following month. The company was definitely banned from trading on the stock exchange in October 2015. In July 2018, Martinsa-Fadesa entered the final phase of liquidation. The website martinsafadesaliquidacion.es was set up to follow the liquidation process. In November 2018, in the aftermath of the crash, the lawyer Antonia Magdaleno was found responsible for the giant debt of the company and sentenced to 4 years in jail.

Operations

Martinsa-Fadesa had two main divisions — real estate and asset management. Real estate is the traditional division through which it engages in the promotion of all types of homes, whether as a first or second residence. Asset management develops basically

hotel A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a re ...

projects and

golf course A golf course is the grounds on which the sport of golf is played. It consists of a series of holes, each consisting of a tee box, a fairway, the rough and other hazards, and a green with a cylindrical hole in the ground, known as a "cup". ...

s. It retains the ownership of the

asset In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can ...

and outsource the operation to a specialized third party.

Sponsorship

The company was the official sponsor of Spanish football club

Deportivo La Coruña ''Deportivo'' (Spanish, 'sporting') may refer to: * Deportivo de La Coruña, commonly known as simply Deportivo, a Spanish football club * Déportivo, a French rock band * Deportivo (Mexicable) Mexicable is a aerial lift line in Ecatepec de Mo ...

from 2001 to 2008.

References

{{reflist

External links

Official site
;Financial
Martinsa-Fadesa, S.A.
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Construction and civil engineering companies of Spain Defunct construction and civil engineering companies Real estate companies of Spain Defunct companies of Spain Companies based in Galicia (Spain) Companies based in the Community of Madrid Spanish companies established in 1991 Spanish brands Defunct real estate companies Construction and civil engineering companies established in 1991 Real estate companies disestablished in 2018 Construction and civil engineering companies disestablished in 2018 Real estate companies established in 1991 Spanish companies disestablished in 2018