Two Spanish firms are looking to raise up to €900m (£737m) by listing distressed real estate investment funds.
Grupo Lar is floating property vehicle, Lar España Real Estate, in a bid to net up to €400m from investors.
Lar España is seeking to raise gross proceeds of between €350 to €400m from institutional investors, including €10m subscription of shares from Grupo Lar.
It has received binding commitment from LVS II LUX XII SÀRL, a Luxembourg-based company having PIMCO as investment adviser to invest in aggregate up to €50m in the issue, subject to certain conditions.
Grupo Lar has been appointed as the exclusive investment manager of the vehicle which will become a SOCIMI – the Spanish equivalent of a REIT – to invest in mainly offices and retail in Spain.
It said it is “seeking to maximise returns benefiting from attractive entry prices and opportunities to create value through active asset management and investments, in addition to the expected appreciation in capital values”.
Grupo Lar chief executive Luis Pereda and Miguel Pereda, will lead the company “in order to capture the recovery anticipated in the Spanish economy and the property market”.
Pereda said: “Spanish economy and property markets are showing signs of recovery and this offers good opportunities for long-term investments in our country.
“Our vision for Lar España is to build the market leading Spanish REIT and we believe we are in a good position thanks to Grupo Lar’s long experience in active portfolio asset management and development in Spain”.
The vehicle intends to be listed in the Madrid, Barcelona, Valencia and Bilbao stock exchanges.
It has also been reported that private investment firm Azora is close to launching a fundraising drive for a vehicle which aims to bring in up to €500m from investors.
It has hired Goldman Sachs and UBS to market the listed fund, which will be known as Hispania, according to Reuters.
JP Morgan Securities as sole bookrunner for the proposed Lar España placing.
Bridget.O’Connell@estatesgazette.com
