Grupo Shahani in corporate restructuring
Grupo Shahani began a process of corporate restructuring and debt negotiations with some banks, in an attempt to strengthen its financial situation hit by the real estate sector.
Katherine Shahani , executive director of the Panamanian group, told this newspaper that "there is a shrinkage of liquidity in the market in general and we are not unaware of this situation."
The executive said that for a year now they have been implementing an internal process of restructuring aiming at keeping the company growing, "facing the new realities of the industry, which include not only the decrease in sales, but the balance of the demand of the market, the decrease of the purchasing power of the clients and the needs of new buyers ".
Asked about the pressure of some banks for financial commitments, Shahani said that "all our credit facilities are over-guaranteed" and that they are working with banks to "have a positive resolution for both parties."
The former president of the Panamanian Association of Real Estate Brokers and Promoters (Acobir) added that Grupo Shahani is a family business with a history of 45 years that has delivered 6 thousand homes and more than 450 thousand square meters of construction of industrial buildings.
In recent years, the company has been affected by a reduction in activity in the real estate sector, especially in the high-end segment (with prices above $ 300,000), where the company had a good part of its projects.
This residential market was absorbed in the past by foreign clients who, in some cases, have lost their purchasing power.
"We know that the economic situation we are experiencing is also a situation in the region and we are adjusting our strategic plan to this new reality. We hope that this situation is temporary and we can quickly resume the path of growth in the real estate sector, "said the businesswoman.
The situation of the company is a reflection of the activity of the sector. Between January and May, the production of ready-mix concrete fell by 24.9% compared to the same period of the previous year, while the value of approved construction permits was 40.9%.