Spanish REIT Axia Seeks 400 Million Euros With Offering

Axia Real Estate SOCIMI SA, a Spanish REIT, will seek to raise 400 million euros ($544 million) with a stock offering as it taps demand from investors seeking to bet on a recovery in the country’s property market.

Axia will issue as many as 40 million ordinary shares at 10 euros each in an offering being led by Citigroup Inc. and JB Capital Markets, the company said in a prospectus for the offering approved by Spain’s market regulator today. The shares are due to start trading on July 9.

Axia, led by Chief Executive Officer Luis Alfonso Lopez de Herrera-Oria, will seek to invest in undermanaged high-quality commercial real estate mainly in Madrid and Barcelona, according to the prospectus. Axia is the latest Spanish REIT to offer shares as Merlin Properties SA seeks to raise about 1.5 billion euros in an initial public offering next week following sales in March by Lar Espana Real Estate Socimi SA and Hispania Activos Inmobiliarios that raised 900 million euros.

Axia said it had received commitments from investors to subscribe for 247 million euros of shares in the offering. They include Perry European Investments SARL, which agreed to acquire 10.5 million shares, and Taube Hodson Stonex LLP, which pledged to buy 4 million shares.

From 1986 to 2002, Lopez de Herrera-Oria was executive director of Prima Inmobiliaria, a real estate company that merged with Vallehermoso Renta in 2000 to become Testa Inmeubles en Renta, unit of Sacyr SA. He was until recently CEO of Alza Real Estate.

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