Spain's Reyal Urbis says to issue shares

MADRID, April 22 (Reuters) - Spanish property group Reyal Urbis (REYU.MC: Quote, Profile, Research) said on Tuesday it will issue shares to increase liquidity in its stock when market conditions allow.

In a statement to the stock market regulator Reyal noted that it had made a commitment to issue shares into the market when it was formed by a merger in June 2007 but said unstable market conditions and a general worsening of the Spanish property market had made this impossible.

Reyal Urbis currently has a free float of 12 percent and said it will move to remedy the situation as soon as market conditions allow. (Reporting by Joe Ortiz)