King Sturge Spain, a real estate consultancy, and part of an international British group, is reported to be seeking voluntary administration this week, making it the latest victim of Spain’s property crash.
The company, which employs 220 people in Spain, also has plans to lay off staff, though it claims that neither move will affect the company’s ability to trade as normal.
Like everything these days, the credit crunch is also being blamed for King Sturge’s financial troubles. Commercial real estate clients are reported to be struggling to get hold of cash to pay the fees of companies like King Sturge, and their I.O.Us no longer cut it with the banks.
King Sturge Spain (King Sturge España) focused on commercial property, with little activity in the residential sector. King Sturge’s financial problems suggests that the commercial property sector is also going into a deep funk.