Spanish property company Reyal Urbis said it reported a loss of EUR 69 mln in the first half of the year, representing an 80% improvement compared to a loss of EUR 332 mln in the same period last year. In a statement to the Spanish financial market regulator CNMV on Friday, the company said its turnover amounted to EUR 419 mln in the first six months of 2009, down by 58% on last year's volumes.

The firm said that it had not been able to reach a refinancing agreement with its creditor banks but added that it expects its lenders to agree on the refinancing of EUR 3 bn in debt before the end of the year.

The company highlighted the positive impact from the residential property development business which contributed EUR 326 mln to the company's result in H1. As a result, Reyal Urbis is confident that the market will readjust in the next months and that growth will resume in 2010.