Spanish property firm Realia plans to convert a 鈧�115 mln loan into shares as part of a plan to restructure its debt load.
Spanish property firm Realia plans to convert a 鈧�115 mln loan into shares as part of a plan to restructure its debt load.
Realia, which posted revenues of 鈧�50 mln in the first quarter of the year, said the operation will be carried out through a capital increase which will be subscribed by two creditors, construction group FCC and bad bank Sareb.
The company will issue shares at a price of 鈧�1.92 per share.
Following the agreement, Spain's bad bank Sareb will control 8.9% of the property firm, while shareholder FCC will increase its stake to 33.6%.
The loan was provided in 2009 by FCC and former lender Caja Madrid, currently part of Bankia, as part of an agreement to extend a financing facility for Realia's development arm. The facility was transferred to the Spanish bad bank at end 2011.
Realia, the owner of a major stake in French REIT Siic de Paris, posted a 5% decrease in revenues and a loss of nearly 鈧�11 mln in the first three months of the year.
The group's portfolio includes nearly 600,000 m2 of space largely consisting of prime offices in Spain and in France as well as shopping centres in Spain.
