Soros, Paulson buy stake in Spanish Reit

[MADRID] Hedge fund managers George Soros and John Paulson have both taken a 92 million euro (S$160.6 million) stake in a new Spanish property investment vehicle called Hispania, the Financial Times reported citing sources close to the deal.

Hispania, created by Spanish-based private investment firm Azora, last week announced plans to list on the stock exchange and launch a share offering in order to raise 500 million euros from qualified investors. It will operate as a real estate investment trust (Reit) - listed vehicles that typically invest in income-producing assets, such as rental properties. Azora, Mr Soros and Mr Paulson were not immediately available to comment.

Reits are taking off in Spain, where they are known as Socimis, as foreign investors hope to cash in on the country's economic recovery and search for real estate bargains following a 30 per cent property price slump since a real estate bubble burst six years ago. Outpacing Hispania, Spanish family-owned real estate company Grupo Lar said last week it would list on the stock exchange in a 400 million euro deal, priced at 10 euros per share.