After a few days of on-and-off negotiations, it appears that the Investment Corp. of Dubai (ICD) will buy Spanish real estate giant Inmobiliaria Colonial SA, though as of Thursday afternoon, no deal had been definitively announced.
It is also possible, according to a report yesterday afternoon by Reuters, that the ICD will only buy the rental property unit of Colonial, leaving the development unit to the company's main shareholders.
However, a serious downturn in the Spanish real estate market, led by slumping residential sales, has left Colonial with about 8.6 billion euros worth of debt after a number of recent acquisitions by the company.
