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Gilinski Acquires Hotel Villa Magna For €190M

30 June 2015 – Expansión

The Colombian investor has acquired the exclusive Madrilenian hotel for €190 million and is now negotiating the contract for the management of the property with the international hotel chains Marriott and Starwood.

The Colombian businessman Jaime Gilinski (pictured above) has agreed the acquisition of the Hotel Villa Magna in Madrid for €190 million. The proeprty is currently owned by Sodim, a holding company controlled by the Portuguese Queiroz Pereira family. The deal is expected to be signed within the next few days (…).

The transaction represents the largest hotel purchase in recent times in Madrid. Last month, the Ritz Hotel was sold to the Saudí group Olayan, in a joint venture with the Mandarin Group for €130 million; and in May 2014, Katara Hospitality purchased the Intercontinental Hotel for €70 million. The consideration also comes close to the €200 million paid by Qatari Diar in 2013 for the W Hotel in Barcelona.

The Queiroz Pereira group purchased Hotel Villa Magna in 2001 from the Japanese company Shirayama for €80 million, and spent a further €50 million on the refurbishment of the property.

The deal, coordinated by the real estate consultancy JLL, has been closed in record time since the process for marketing the property officially began less than a month ago and reflects the interest that exists for real estate assets in Spain. Gilinski’s offer exceeds the property’s asking price (€180 million) by €10 million.

Once the deal has been signed, Gilinski will focus on reaching an agreement for the management of the property. After ruling out other options, he is currently negotiating with two candidates, namely, Marriott and Starwood.

The hotel is currently operated by the Queiroz family following the departure of the US hotel chain Hyatt in 2009, which managed the property for almost two decades.

The Hotel Villa Magna has 150 luxury rooms, including suites (measuring between 30m2 to 290m2), following the refurbishment work undertaken by the former owners, between 2007 and 2009.

Commitment to Spain

The new owner of Villa Magna arrived in Spain in 2013 after acquiring 5% of Banco Sabadell. Since then, he has not only increased his stake in the bank to become the largest shareholder in the Spanish entity, he has also evaluated opportunities in other sectors, such as real estate.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake