Spanish land sell off for €120m

The insurance group FBD Holdings announced today a conditional cash deal of up to €120m to sell a major portion of the building development land that it owns in La Cala Resort of Spain.

The buying company Desarrollos Lar Sol which is owned by Spanish property development company Groupo Lar SA & MSREF, a property investment fund controlled by Morgan Stanley.

Cash proceeds of the sale are estimated to be up to €120m in part payments. The FBD Board intends to distribute the proceeds of the sale by way of two special dividends.

FBD remains the majority owner & operator of the resort's leisure interests & will complete & promote its current residential building developments.

Philip Fitzsimons, the FBD Chief Executive, said the deal was very satisfactory, & that the potential identified originally at La Cala in Spain 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.