The firm Activum SG Iberia, which is responsible for managing and developing projects on behalf of the Activum fund in Spain, is working on the construction of more than 1,500 homes, with another 500 units in the pipeline, following the acquisition of two plots of land in Málaga, amongst other sites.
Specifically, ASG will construct high-rise homes in Estepona and exclusive villas in Marbella, after investing €15 million to acquire these plots. “We have no limits. We firmly believe in Spain and its potential for growth, and so we are open to keep on growing”, said Brian Betel, Managing Partner at Activum SG Iberia.
Betel has led the funds raised by ASG, after managing the entry of another major international investor, Cerberus, into Spain. “We set up the Iberia fund in July 2015 and we have already invested all of it in Spain. We have not invested anything in Portugal yet because there are so many opportunities in Spain”.
Two years after starting its activity in Spain, the investment firm has invested €275 million of own funds, in addition to the external financing. “The first Activum fund started in 2007, the first two focused on assets in Spain and then 15% of the third fund corresponded to Spanish assets”, said Betel. This third fund contains two office buildings, Santa Leonor and Manuel de Falla, as well as the Mercado de Fuencarral, in Madrid”. “Talus put the Mercado de Fuencarral up for sale at the end of 2014 and we closed the deal within three weeks”.
The other two funds were raised to be invested entirely in the Iberian Peninsula. Just a few months ago, the company raised €200 million for its fifth fund. “The objective of this fifth fund is to raise €650 million in several phases between now and June 2017”, say sources at ASG.
Activum has two key residential projects, located in Alicante and Alcalá de Henares (Madrid). “The size of the project in Alicante is significant – there, we are going to construct 220 homes, for use as both primary residences and holiday homes”. Meanwhile, in Alcalá de Henares, Activum has acquired six plots of land, where it will build around 650 homes over several phases.
Moreover, it has other projects under development in Valencia and on the Costa del Sol.
Beyond the residential market, ASG is working on the construction of two hotels, in Madrid and Málaga. In the former, the firm is going to convert an office building on Ronda de Atocha into a 176-room establishment, whilst in Málaga, it is preparing to renovate the old Marqués de la Sonora palace, which has been closed down for years, into an iconic establishment in the centre of the Andalucían city.
Original story: Expansión (by Rocío Ruiz)
Translation: Carmel Drake
Translation/Summary: Carmel Drake