Metrovacesa: A Safe Bet On A Spanish Residential Developer

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About: Metrovacesa S.A. (MRVCF)
by: Gasebu Private Investor
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Gasebu Private Investor
Long/Short Equity, Special Situations, Growth At Reasonable Price, Contrarian
Summary

A 62% discount to gross asset value is a huge headroom for the investor that provides lots of safety in the investment.

Entry price equivalent to €180 ($212) per buildable square meter which is absurdly low.

Controlling shareholders could be aligned for a value recovery strategy that focuses on dividend payback which could become a very profitable strategy for the investor at these prices.

Metrovacesa (OTC:MRVCF) is a Spanish residential developer company with more than 36,000 residential units in its land bank. Its market cap is c. €910 million ($1,075M) at the current price of €6 ($7.1)