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Lar España Evaluates €200M Capital Increase

18 June 2015 – Europa Press

Lar España is analysing the possibility of increasing its share capital this year to take advantage of the “new opportunities” for investment in the real estate sector that it has identified.

The capital increase would amount to a maximum of €200 million, since the Socimi has been authorised by its shareholders to increase its capital by up to 50% of its current level, according to reports filed with Spain’s National Securities Market Commission (CNMV).

Lar España is evaluating whether to raise further capital after its recent bond issue (€140 million) in February, which it also undertook to raise funds to invest in the real estate sector.

With this latest increase, the company will join many of the other Socimis constituted last year, such as Hispania, Merlin and Axiare, which have also resorted to capital increases to raise funds with which to purchase new real estate assets to grow their portfolios.

In the case of Lar, the company claims to have identified “new investment opportunities”, which have led its board of directors to “launch a process to analyse the possibility of undertaking a capital increase in 2015”.

Nevertheless, the Socimi says that, the final operation “will be subject to changes in market conditions”.

Since its constitution and IPO in early 2014, Lar has purchased assets worth around €550 million, including seven shopping centres in several regions, four office buildings in Madrid, eleven logistics warehouses, three medium-sized retail premises and a residential building in Madrid.

Original story: Europa Press

Translation: Carmel Drake