FBD sells portion of Spanish land

Insurance group FBD has entered into a conditional agreement to sell a major portion of the building development land it owns at La Cala Resort, Mijas, Spain, in a cash deal.

The purchasing company is Desarrollos Lar Sol, which is 50% owned by Groupo Lar SA, a real-estate development, investment and management company.

The remaining 50% is owned by MSREF, a real-estate investment fund controlled by Morgan Stanley Bank.

The net 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.

It will also continue to own a portion of development land at La Cala.