MADRID, July 8 (Reuters) - Spain’s Axia Real Estate, the latest in a flurry of property investment vehicles to seek a listing on the Madrid bourse this year, has fixed the size of its initial public offering (IPO) at 360 million euros ($491 million).
Several Spanish property companies have used such real estate investment trusts (REITS) to raise funds to snap up assets such as shopping centres, offices and apartment blocks at low prices after a six-year property slump that had knocked about 40 percent off house prices.
Tax advantages offered by REITS and the potential for high yields have attracted international investors and are helping to revive Spain’s equity capital markets this year as the country emerges from recession.
Merlin Properties was the most recent REIT to list in Spain, raising an initial 1.25 billion euros in June and making it the biggest such listing so far.
Axia IPO-AXI.MC, which announced the size of its IPO on Tuesday, is being launched by Luis Alfonso Lopez de Herrera-Oria and the Rodex Asset Management real estate advisory group he controls. The Spanish real estate entrepreneur will run Axia as chief executive after leaving his job as CEO of property group Alza Real Estate.
Citi and Spain’s JB Capital Markets are handling Axia’s flotation, which will involve the issue of 36 million new shares at 10 euros each. Axia said in a previously released prospectus that its shares would start trading on the Spanish stock exchange around July 9. ($1 = 0.7331 Euros) (Reporting by Sarah White; Editing by David Goodman)