Goldman, Eurohypo buy stakes in FCC, SFL for EUR 382m

Spain's troubled property company Colonial said on Tuesday that US investment bank Goldman Sachs and German commercial lender Eurohypo are exercising their call options to buy part of Colonial's stake in units Fomento de Construcciones y Contratas (FCC) and Societe Fonciere Lyonnaise (SFL). Goldman Sachs has bought a 3.4% stake in FCC, while Eurohypo is to purchase a 3.4% stake in FCC and a 7.25% stake in SFL.

The two banks are paying EUR 30 per share or around EUR 133 mln each for their stake in FCC. The price values the 15% stake Colonial holds in FCC at a total of EUR 590 mln, which compares to an investment of EUR 1.5 bn the company made in late 2006 to buy the FCC interest from businesswoman Esther Koplowitz.

Options for creditor banks to acquire Colonial's 33% stake in SFL have been set at EUR 35 a share, valuing the stake at EUR 530 mln and the acquisition by Eurohypo at EUR 116 mln. On Tuesday, SFL shares were trading at EUR 27.50 per share.

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, which also include Calyon and the Royal Bank of Scotland, can exercise the buy option for 3.4% of FCC and 7.25% of SFL from December 11 to January 10.

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.