Chaired and controlled by Rafael Santamaría, Reyal Urbis inmid-May signed a credit refinancing agreement with syndicatedlenders covering most of the debt of the company and its Portuguesesubsidiary, as well as instruments subscribed to by Reyal Urbis,according to a filing with Spain's stock market regulator CNMV.

Reyal Urbis summarized the main characteristics as the extensionof the syndicated credit until December 2016, a $917 millionreduction of financial debt to $4.6 billion through the sale tobanks of residential land and 400 dwellings, and a line of creditfor a maximum $350 million, included in previous amounts. RU hasalso agreed a new $42.8 million liquidity line to meet treasuryneeds. A transfer of assets to creditor banks forms part of theagreement.

Over one month, a number of debtor banks will be able topurchase residential land up to a maximum amount of $611 millionfrom RU. The landmark Castellana 200 mixed-use project, suspendedin 2009, will be transferred to a unit in which it will own 93% ofequity capital and 49% of voting rights. The remaining 51% will beheld by five creditor banks.