Méndez Álvaro Mega-project | Photo Collected from Colonial's Last Financial Report
This decision includes delaying the development of its mega-project Méndez Álvaro in Madrid estimated at 300 million euro, whose delivery was expected for the second half of 2022, as revealed by the company in a release sent to the Comisión Nacional Del Mercado de Valores (National Securities Market Commission) this Tuesday.
This is only one of the projects the REIT has on the pipeline which in total, are estimated at 1.3 billion euro. There is a total of 9 projects spread across Barcelona, Paris and Madrid. Despite the decision, «no relevant penalties or liabilities connected to the delays are expected», assumed the REIT.
Despite the current situation, the REIT continues its activity with a set of assets which «remains particularly resilient within this complex environment», since the occupancy rates are close to 100% and, on the other hand, 78% of its customers signed leasing contracts between 5 and 10 years.
In order to adapt to this new global scenario, Colonial assumes that «we revised our criteria and investment policies according to a more prudent context». And he further added that until now «there were no significant changes in our predicted divestments, and there are no expected acquisitions or investments for our investment pipeline».