MADRID, Spain-Lar Espana Real Estate Socimi SA, an investment entity similar to a REIT, will become the first new Spanish company since 2011 to execute an IPO.
Lar Espana has reportedly filed papers for an early March launch that will involve the sale of around $560 million (EURO 400M) of shares.
According to a Bloomberg report that cited filing documents,the Socimi, a Spanish structure similar to a real estate investment trust, will sell 40 million shares at 10 euros each and plans to list around March 6. The fund, will focus on distressed assets in Spain, and is managed by Grupo Lar, a real estate group controlled by the Pereda family with around $2.2 billion (EURO 1.6B) of assets, Bloomberg says.
Spain’s main stock index gained 25% in the past year and there are signs that the economy is recovering from two recessions. Private money including funds Apollo Global Management LLC have entered the Spanish market. Grupo Lar is among those buyers. With Fortress Investment Group LLC, it has acquired $200 million (EURO 146M) of assets in December.
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