Spanish listed property company Parquesol is planning to merge with construction company San Jose Group, chairman Jacinto Rey announced this week. The merger, which still needs to be approved by shareholders, would create a conglomerate with net sales of around EUR 1.6 bn.

Spanish listed property company Parquesol is planning to merge with construction company San Jose Group, chairman Jacinto Rey announced this week. The merger, which still needs to be approved by shareholders, would create a conglomerate with net sales of around EUR 1.6 bn.

Although the details of the merger plan are unknown, Parquesol said that the idea is to create one listed group integrating the businesses of both companies. The company added that the merger will generate 'a more diversified real estate business both geographically and in terms of product. It also indicated that the real estate business will be managed independently of the other business areas of the group.

San Jose, which bought a controlling 53% stake in Parquesol last year for some EUR 470 mln, is an unlisted company active in development, investment and management of commercial real estate. Parquesol is active across Spain, Portugal, France and Poland and is currently 53%-controlled by San José, 13% by Caja Castilla La Mancha, 5% by Caja Municipal de Burgos, while 28% is free float. Parquesol said in a statement that the independent valuation of both companies was not completed but added that its net asset value is about EUR 1.6 bn.