Spanish Sanyres Homes Group on Block

Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

MADRID-Spanish care homes and services group Sanyres, set up by the private family property firm Grupo Prasa, has finally hung out the For Sale sign. The firm, which owns 19 senior and medical care facilities, has commenced contacts with potential buyers for the sale of all or part of the company.

The group started out with ambitious plans to become the leading firm in its sector by 2008 with an invoicing level of €350 million per year and 20,000 beds. However, according to Deloitte, the company has never registered a profit in its entire 10-year history due to insufficient occupancy levels. The company registered losses of €5.7 million in 2008, €7 million in 2007, €5.7 million in 2006 and €3.1 million in 2005. The company billed €45 million in 2008. The assets of Sanyres, which has its HQ in Cordoba in southern Spain, are valued at €36 million with 520 employees. Sanyres has one of the highest share capitals of the sector at €100m. The 19 centres it operates are mostly located in Andalucia (southern Spain), Madrid and the north of Spain.

Shareholders of Sanyres include Caixa Catalunya, CajaSur, Gecina and Bami. The last two, headed by Gecina’s embatteld chairman Joaquin Rivero, entered the group at the start of 2009 through the purchase of Bancaja which held a 25% stake. According to the Expansion newspaper, Rivero agreed to the purchase to return a favour owed to Romero who supported him two years previously in his bid for control of Metrovacesa against the Sanahuja family. Romero bought 3% of the company, worth €275 million at that time.