STOCKS NEWS EUROPE-Spain property soars on renewed interest

Shares in Spanish real estate companies like Reyal Urbis (REYU.MC), Metrovacesa (MVC.MC) and Colonial (COL.MC) extend Thursday's heavy gains, with dealers citing renewed buying interest even though the property crisis does not look over yet.

"People are looking for stocks that have missed out on the rally, but these gains seem overdone. There're speculative moves that are exagerrated by thin volumes," a Madrid-based trader says.

Dealers say the gains are also supported by a Daily Telegraph report that a group of Indian and Gulf investors is mulling a 10 billion pound ($16.54 billion)-plus takeover of Britain's second-largest real estate firm British Land (BLND.L). [ID:nLE391471]

Reuters Messaging rm://andres.gonzalez.reuters.com@reuters.net

($1=.6045 Pound)