Spanish holding company Criteria will increase its stake in real estate group Colonial to 16.78% from the 3% it currently holds by subscribing to a capital increase worth 622 million euros ($676 million), Colonial announced Thursday.

This would make Criteria, which is the main shareholder of Caixabank -- one of Spain's largest banks -- the main shareholder of Colonial.

Criteria will pay 350 million euros in cash, in addition to contributing eight properties in several Spanish cities from the portfolio of its subsidiary InmoCaixa.

The capital increase will be carried out through the issuance of 87.73 million new Colonial shares at a price of approximately EUR 7.1 per share. This represents a par value of €2.5 plus a premium of €4.6 per share, Colonial added in a regulatory filing.

Colonial shares were up 4.15% at the market close following the announcement of the transaction.

(1 dollar = 0.9200 euros)

(Information by David Latona; edited in Spanish by Javi West Larrañaga)