Martinsa-Fadesa
| Company type | Sociedad Anónima |
|---|---|
| Industry | Construction, Real estate |
| Predecessor | Promociones y Urbanizaciones Martín, S.A. (Martinsa), Fadesa Inmobiliaria, S.A. |
| Founded | 2007 |
| Defunct | 2018 |
| Fate | Bankruptcy and liquidation |
| Headquarters | Madrid , Spain |
Area served | Spain, Portugal, Morocco, Hungary, Romania |
Key people | Antonia Magdaleno (attorney involved in debt management) |
| Products | Residential construction, real estate development, asset management |
Martinsa-Fadesa, S.A. was once a prominent Spanish residential construction firm prior to the downturn of the Spanish property bubble. Based in Madrid, Spain, it was formed in 2007 through the merger of Promociones y Urbanizaciones Martín, S.A. (Martinsa), a smaller developer with €90 million in sales during 2006, and Fadesa Inmobiliaria, S.A., a major builder with revenues reaching €1.3 billion. The merged entity entered insolvency proceedings on 15 July 2008 after being unable to meet its debt obligations.
History
Fadesa originated in the late 1970s in A Coruña, initially concentrating on subsidized housing developments. By 1993, it had expanded its operations beyond Galicia into areas such as Castile and León and subsequently throughout Spain, establishing twenty regional offices and more than fifty sales outlets.
In 1999, Fadesa ventured into international markets by expanding into Portugal, followed by entry into Morocco in 2000. Its overseas portfolio featured significant projects like a 300,000 square meter tourist complex in Saīdia, Morocco. Additionally, the company maintained activities in Eastern European countries including Hungary and Romania.
By the close of 2006, Fadesa declared sales totaling €1.281 billion.
On December 14, 2007, Fadesa merged with Martinsa, whose net asset value reportedly rose from €32 million to €303 million that year due to a capital increase involving loan conversion. After adjustment, Martinsa’s net assets were approximately €69 million. At that time, Martinsa held total assets worth €296 million compared to Fadesa’s €4.4 billion recorded in 2006.
Financial difficulties
In 2007, Martinsa-Fadesa experienced a 36% decline in home sales compared to the previous year, while its debt escalated to €5.153 billion amid the collapse of the Spanish property market. On July 14, 2008, the company failed to obtain an additional €150 million credit facility intended to restructure €4 billion of debt, triggering a 70% drop in share price over two days and leading to bankruptcy proceedings—the largest corporate default in Spain's history. The firm also proposed workforce reductions amounting to 23% of its staff.
By March 2015, Martinsa-Fadesa filed for bankruptcy protection with assets valued at €2.4 billion against liabilities totaling €7.0 billion, making it one of the largest bankruptcies in Spain. Trading of its shares was abruptly halted, preventing investors from selling their holdings. Liquidation commenced the following month, and by October 2015 the company was expelled from stock exchange listing. Entering its final liquidation stage by July 2018, a dedicated website was established to monitor progress. In November 2018, attorney Antonia Magdaleno received a four-year prison sentence for her involvement in managing the company's debt during its financial collapse.
Operations
Martinsa-Fadesa operated through two primary divisions: real estate development and asset management. The real estate branch concentrated on constructing various types of homes intended for both primary residences and vacation properties. Meanwhile, the asset management division focused on projects such as hotels and golf courses, maintaining ownership while delegating operational responsibilities to specialized external firms.
Sponsorship
Between 2001 and 2008, the company served as the official sponsor for the Spanish football team Deportivo La Coruña.
External links
- Financial Information
- 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