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By Sonya Dowsett
MADRID, May 20 (Reuters) - Debt-burdened Spanish real estate group Realia said on Tuesday it had agreed to sell its stake in French property vehicle SIIC de Paris at a loss to investment group Eurosic.
Realia, controlled by Spanish builder FCC and Bankia, said it would sell its 59 percent stake in SIIC de Paris at 22 euros per share, valuing the French company at around 948 million euros ($1.3 billion).
The move is the first step of a broader shake-up at Realia, as FCC and partly state-owned Bankia seek to sell their combined 58 percent stake in the group. The two companies hired Goldman Sachs in November to find a buyer for the controlling share.
Heavily-indebted FCC is looking to sell hundreds of millions of euros worth of assets to pay off loans built up during Spain's construction and property boom, while Bankia must sell off non-core business under the conditions of a 2012 European Union bail-out.
SIIC de Paris holds a portfolio of historic and modern buildings in the centre of the French capital including in high-end shopping square Place Vendome and prime office district Boulevard Haussmann.
Realia said the sale would imply a reduction in net debt of 1.033 billion euros and would entail a book value loss of 82 million euros. The sale price is at an 11.43 percent discount to net asset value - a measure of the SIIC de Paris fund's performance, Realia said.
Shares in Realia were 4.3 percent higher at 0910 GMT, while FCC and Bankia were little changed.
Realia said the offer for SIIC de Paris, once finalised, would prompt Eurosic to launch an offer for all of the company under French law.
The deal is subject to approval from fellow SIIC de Paris shareholder Societe Fonciere Lyonnaise and competition authorities, and would be formalised by June 6, Realia said.
FCC and Bankia are looking to sell the rest of their Realia holdings, including office buildings and shopping centres in Madrid and Barcelona.
$1 = 0.7289 Euros Editing by Keiron Henderson