Marathon & Colliers Team Up to Finance €200M of Land Purchases in Spain
25 April 2018 - Expansión
MCAP, one of the funds managed by Marathon, is going to offer financing to property developers and cooperatives for the acquisition of finalist land amounting to €200 million.
The current objective of many international investment funds is to take advantage of the strong performance of the house buying market in Spain at the moment, either through the launch of their own property developers or by forming alliances with third parties.
The latest to join the bandwagon is the US manager Marathon Asset Management. The firm has announced that it is going to allocate €200 million to finance the purchase of finalist land in the Spanish market through its London-based subsidiary.
The resources, which come from funds managed by MCAP Global Finance UK, will be shared between property developers and cooperative managers in search of alternative financing and bridge loans for their projects.
The objective is to finance up to 75% of the land value (LTV) depending on the commercial viability of each project, explained sources at Colliers Internacional, Marathon’s partner in this plan. “We expect to close financing agreements amounting to more than €100 million over the next six months”, said Mikel Echavarren, CEO of Colliers International.
The team at Colliers plans to close the first agreements with cooperatives and property developers that are carrying out projects located in Madrid, Málaga, Valencia and Sevilla over the next few weeks. The minimum investment volumes will amount to between €2 million and €3 million.
Original story: Expansión (by Rocío Ruiz)
Translation: Carmel Drake