The Spanish property company Lualca and the bank group Ibercaja have taken a 4.09% and 1.68% stake respectively in Reyal for a total investment of EUR 131 mln. The operation was concluded before Reyal boosts its capital by EUR 2.2 bn as a first-step to acquire real estate peer Urbis.

The Spanish property company Lualca and the bank group Ibercaja have taken a 4.09% and 1.68% stake respectively in Reyal for a total investment of EUR 131 mln. The operation was concluded before Reyal boosts its capital by EUR 2.2 bn as a first-step to acquire real estate peer Urbis.

Reyal Grupo launched a EUR 3.3 bn takeover bid for Urbis earlier this month. The merger operation is expected to be completed by the first half of 2007, and will create one of the largest Spanish property companies alongside with Metrovacesa, Colonial and Fadesa. It will be worth around EUR 5.5 bn.

In a statement, Reyal's president Rafael Santamaria said Inmobiliaria Lualca is to invest EUR 93.75 mln for the acquisition of 16,784 Reyal's shares, which compares to 4.09% of the company’s capital. Ibercaja will take a 1.68% stake for EUR 37.5 mln, which will give it 6,714 shares.

Lualca and Ibercaja are echoing Porcelanosa's earlier announced move to acquire 1.68% of the family-owned Santamaria property company.

Reyal is mainly active in Spain, but it is also present in Portugal and the US. It had a turnover of EUR 409 mln in 2005. Its portfolio includes 7,159 homes and around three million m2 of land.