Spain's troubled property company Colonial said on Tuesday that French investment bank Calyon is exercising its call option to buy part of Colonial's stake in units Fomento de Construcciones y Contratas (FCC) and Societe Fonciere Lyonnaise (SFL). Calyon has bought a 3.39% stake in FCC and a 8.8% interest in SFL. Colonial said it has cut its debt by EUR 273 mln by selling the stakes.

Spain's troubled property company Colonial said on Tuesday that French investment bank Calyon is exercising its call option to buy part of Colonial's stake in units Fomento de Construcciones y Contratas (FCC) and Societe Fonciere Lyonnaise (SFL). Calyon has bought a 3.39% stake in FCC and a 8.8% interest in SFL. Colonial said it has cut its debt by EUR 273 mln by selling the stakes.

In late November, Colonial said it was offering its creditor banks an option to acquire its 15.45% stake in construction group FCC and its 33% interest in French property firm SFL. The creditor banks can exercise the buy option for 3.4% of FCC and 7.25% of SFL from December 11 to January 10. Calyon is paying EUR 30 per share for its stake in FCC. Options for creditor banks to acquire Colonial's 33% stake in SFL have been set at EUR 35 a share. Calyon is exercising its call option for a 7.25% stake in SFL and has bought another 1.55% as part of a similar call option transferred from ING RE Finance to the French bank.

Colonial agreed to sell its interests in SFL and FCC in September as part of an agreement with banks to restructure its EUR 7 bn mountain of debt. The company is also seeking to sell part of its shopping centre development unit Riofisa. The funds raised by the disposals will be used to repay the new loan, whose maturity date was extended to five years.