UPDATE 1-Spain's Renta gets extension on 500 mln euros loan

(Adds details, background)

MADRID, Aug 8 (Reuters) - Spanish real estate company Renta Corporacion (REN.MC) said it had obtained agreement from creditors for extended covenants on a syndicated loan of 500 million euros ($758.4 million).

In a statement on Friday, the company said its creditors had agreed to extend the loan covenants until the end of 2009 in return for its reducing its debt to a maximum of 500 million euros by June 2009.

It said this was a goal which was in line with its strategic interests.

The financing deal comes as many Spanish real estate companies have sought creditor protection as they struggle to repay debts in the teeth of falling sales and property values.

Renta Corporacion's creditors could have demanded the firm pay back more than 600 million euros in the short term because of falling asset values, to meet conditions attached to the loan it signed, El Economista reported earlier on Friday.

Conditions set in the syndicated loan obliged Renta to maintain set ratios between debts and financial costs and profit and the value of its assets, said the paper.

Renta opted to renegotiate the terms of the loan before a Sept. 15 deadline to set those ratios, said El Economista.

The financing was arranged by Spain's largest bank Santander (SAN.MC) and was signed with 20 other banks, said El Economista.

Credit is harder to secure due to global liquidity difficulties and the value of property assets in Spain is falling due to oversupply in the market.

Last month, Spain's largest property firm Martinsa Fadesa (MFAD.MC) entered administration after failing to raise 150 million euros, a condition for a 4 billion euro refinancing deal which it signed in May. (Reporting by Sarah Morris and Ben Harding; Editing by David Holmes)