CBRE GIP & Pygmalion Join Forces to Acquire 9 Hotels
13 November 2018 - Iberian Property
CBRE GIP and Pygmalion Capital Advisers LLP have recently established a new joint venture for the acquisition and repositioning of hotel assets in Europe, including Spain.
The partnership was launched through a formal tender, the acquisition of NPL’s debt and a portfolio of 9 four-star hotels in Spain, formerly belonging to construction group Urvasco.
The portfolio includes 1,650 rooms in hotels in Sevilla, Madrid, Bilbao, San Sebastian, Santander, Tenerife, Valladolid and Ciudad Real. Hoteles Silken will operate the assets through a long-term deal established with the joint venture, as part of a full repositioning program.
Alexander van Riel, in charge of CBRE GIP for Western Europe, said in a release: "We have entered the Spanish hotel market for the first time with the acquisition of a much sought-after portfolio. This transaction is in line with our global strategy to create strategic joint ventures with experts in the sector".
And he added that "We will generate value through selective actions of added value and at the same time we will benefit from the stable and safe flow of stays. In time, we will make additional investments in hotels with indexed rentals", he concluded.
Christophe Beauvilain, founding partner at Pygmalion Capital Advisers LLP, added that «This alliance underlines our vision for the market of buying, at desirable prices, a pan-European portfolio of businesses and hotels, taking advantage of the special circumstances provided by the growing market of bad loans (NPL) which exists in Europe. The combination of European banks which remain highly exposed to bad loans and the countless debt funds that have been actively buying NPL portfolios, provides a large source of opportunities for investment and for our specialised strategy. Silken’s hotel portfolio provides us with a solid basis to carry out a fast expansion in the Spanish market given our growing flow of investment opportunities", said the release.
Cuatrecasas law firm, directed by Fernando Bernad Ripoll, provided legal assistance. Christie & Co and JLL carried out the commercial and technical due diligence respectively.
Original story: Iberian Property (by Ana Tavares)
Edited by: Carmel Drake