Insurance group FBD Holdings today announced a conditional cash deal of up to €120m to sell a major portion of the building development land it owns in La Cala Resort, Spain.
The purchasing company Desarrollos Lar Sol is owned by Spanish property development company Groupo Lar SA, and MSREF, a property investment fund controlled by Morgan Stanley.
The cash proceeds of the sale are estimated to be up to €120m in phased payments. The Board of FBD intends to distribute the proceeds of the sale by way of two special dividends.
FBD remains the majority owner and operator of the resort's leisure interests and will complete and market its current residential building projects.
Philip Fitzsimons, FBD Chief Executive, said the deal was very satisfactory, and that the potential identified originally at La Cala has been developed, with substantial value created for shareholders.
Shares in FBD closed up 5% this evening, adding 1.95 to finish at €40.15.
