Martinsa-Fadesa, S.A. was one of the main real estate and construction groups in Spain before the crash of the Spanish property bubble. It was based in Madrid, Spain. In 2007, Promociones y Urbanizaciones Martín, S.A. (Martinsa)

merged Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...

with Fadesa Inmobiliaria, S.A. (Fadesa) to create Martinsa-Fadesa. The company went in to administration on 15 July 2008 after failing to pay off debts.

History

Fadesa was founded at the end of the 1970s in A Coruña. It specialized in the development of great projects of protected house. In 1993, its activity outside

Galicia Galicia may refer to: Geographic regions * Galicia (Spain), a region and autonomous community of northwestern Spain ** Gallaecia, a Roman province ** The post-Roman Kingdom of the Suebi, also called the Kingdom of Gallaecia ** The medieval King ...

begun, initially in

Castile and León Castile and León ( es, Castilla y León ; ast-leo, Castiella y Llión ; gl, Castela e León ) is an autonomous community in northwestern Spain. It was created in 1983, eight years after the end of the Francoist regime, by the merging of the ...

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. In 1999, Fadesa expanded internationally for the first time, entering the Portuguese market, and in 2000 it opened its delegation in Morocco. At the international level, it participates in projects like the touristic resort of Saīdia, Morocco with a surface of 300,000 square meters. It is also present in a few Eastern European countries such as Hungary and Romania. At the end of 2006 Fadesa achieved sales of €1.281 billion. On December 14, 2007 Fadesa merged with

Martinsa Martinsa-Fadesa, S.A. was one of the main real estate and construction groups in Spain before the crash of the Spanish property bubble. It was based in Madrid, Spain. In 2007, Promociones y Urbanizaciones Martín, S.A. (Martinsa) merged with Fad ...

, another real estate and construction company, through an IPO.

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 Spanish property bubble. On July 14, 2008 Martinsa-Fadesa failed to acquire an additional €150 million in credit 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 Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...

in Spain's biggest ever corporate

default Default may refer to: Law * Default (law), the failure to do something required by law ** Default (finance), failure to satisfy the terms of a loan obligation or failure to pay back a loan ** Default judgment, a binding judgment in favor of ei ...

. 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 Asset management is a systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycles. It may apply both to tangible assets (physical objects such as buildings ...

. Real estate is the traditional division through which it engages in the promotion of all types of

home A home, or domicile, is a space used as a permanent or semi-permanent residence for one or many humans, and sometimes various companion animals. It is a fully or semi sheltered space and can have both interior and exterior aspects to it. H ...

s, whether as a first or second residence. Asset management develops basically hotel projects and golf courses. It retains the ownership of the asset and outsource the operation to a specialized third party.

Sponsorship

The company was the official sponsor of Spanish football club Deportivo La Coruña from 2001 to 2008.

References

{{reflist

History

Financial difficulties

Operations

Sponsorship

References

External links