Spanish listed real estate company Metrovacesa said it has finalised debt refinancing agreements totalling EUR 2.5 bn following a EUR 1.4 bn capital increase last week.

In a statement to the Spanish stock exchange, Metrovacesa said it has restructured a EUR 3.2 bn credit loan, which was initially granted in June 2006, with two new facilities backed by its rental income and land/development portfolios respectively. The refinancings were conditional upon the success of the capital increase.

As part of the deal, Metrovacesa has extended a EUR 1.8 bn facility on its rental portfolio (offices, retail, hotels and its stake in the French REIT Gecina) for a further five years. The maturity on a EUR 620 mln loan backing its land and residential developments was postponed by a further 10 years, the company added.

Last week, Metrovacesa's main creditors - Santander, Banesto, Bankia, BBVA, Sabadell and Popular - exchanged roughly EUR 1.4 bn of debt for new shares issued as part of the company's capital increase. Metrovacesa, which was initially planning to raise EUR 1.9 bn with the operation, said the offer was only 70%-subscribed.

On completion of the operation, Santander is the largest owner with a 35% stake in the company.