Spanish business mogul Juan Miguel Villar Mir is reviewing its position as to the debt saddled real estate company Colonial. The review involves a purchase offer Villar Mir would be offering for the beleaguered firm according to Spanish website El Confidencial.

Colonial is deep in debt, amounting to Eur3.5 billion or US$4.6 billion but has an asset base of Eur5.2 billion. The real estate firm, back in 2011, created a new unit named Asentia to manage its toxic real estate assets to become separate and distinct from the other businesses.

Colonial, to allay fears of its fiscal position, is about to restart its refinancing discussions with its debt creditors, especially the ones that will fall due by 2014.  The company declared a Eur201 million net loss for the first nine months of 2012 ending September.

Villar Mir is the current owner and chairperson of Spanish company OHL. Colonial refused to comment on the reported review by OHL.