Spanish family-owned property group Lar has announced plans to list its shares on Spain's main stock exchanges and convert to tax-efficient REIT status.

Spanish family-owned property group Lar has announced plans to list its shares on Spain's main stock exchanges and convert to tax-efficient REIT status.

In a statement to the stock market watchdog CNMV, Grupo Lar said it plans to raise around €400 mln with the issue of 40 million new ordinary shares at a price of €10 per share. The group will seek listing under the name of Lar España Real Estate Socimi on the Madrid, Barcelona, Bilbao and Valencia exchanges.

Grupo Lar expects to launch the offering on or around 6 March.

JP Morgan and law firm Linklaters are advising on the operation, which is believed to be the first Initial Public Offering by a Spanish property company since 2011.

Grupo Lar is 83% owned by the Pereda family, which has committed to purchase up to 1 million new shares.

The company owns some €1.5 bn of commercial real estate, largely shopping centres and offices including the 91,000-m2 Islazul shopping centre in Madrid. Lar said the listing will not affect the sale of two assets currently under negotiation representing a total disposal volume of €250 mln.

Grupo Lar is the latest property owner to adopt SOCIMI status, the Spanish equivalent of a real estate investment trust or REIT. In late 2013, the Spanish division of Unibail-Rodamco converted to the tax-efficient structure while UK retail specialist Intu Properties is also planning the launch of a Spanish REIT this year.

Real estate investment trusts, also known as SOCIMIs in Spain, were introduced in the country in 2009 with scant success but recent changes including more flexible listing requirements have incited investors' interest.

'The changes in Spanish legislation will inevitably improve long-term investors' interest in the real estate market, adding liquidity and solvency,' commented Simon Orchard, head of Unibail-Rodamco in Spain.

Unibail owns a portfolio of 16 shopping centres in Spain, valued at €2.5 bn. In total, Spain represents around 10% of Unibail-Rodamco's retail portfolio in Europe.