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GreenOak to Get Down Its European Investment to Spain

5/11/2014 – Expansion

Real estate investment fund GreenOak has picked Spain as the only investment destination. Since its establishment in 2010, the company spent €2.5 billion in total, bringing it ownership or development of assets jointly valued at more than €5 billion in.

In 2014 and in Spain solely, GreenOak and its local partner Grupo Lar invested €160 million in purchase of seven shopping centers: the Parque Vistahermosa in Alicante, the Miramar in Burgos, the Montigala in Barcelona, the Las Rosas, the Madrid Sur and the Getafe II close to Madrid area and the Rosaleda in Malaga.

The group has got offices in London, Munich, New York, Los Angeles and Tokio and by now it has carried out investments in the United States, Japan, the United Kingdom and Spain. As per the infomation provided by Expansion, GreenOak decided to focus its entire European spending on the Spanish real estate as, in its executives’ opinion, the prime assets had been neglected during the recession.

Large part of the fund’s team is highly experienced in the Spanish property market. One of its founders, John Carrafiell, has participated in Barcelona Meeting Point (BMP) exhibition held last week. He specified that GreenOak ‘eyes the assets largely refused by other funds, such as small buildings priced at between 10 and 40 million euros which need some sweat equity aside from capital’.

Mr. Carrafiell also assured that the fund is not interested in loans, unlike other firms which told him: ‘there is too much equity in Spain and the country has run out of opportunities. That is why we search for troublesome assets and huge returns’. ‘They are rather toxic asset investors, not real estate’, he concluded.

In his opinion, an investor needs ‘patience and a long-term outlook’ and ‘these are in Madrid today, tomorrow in Milan, then they head to Greece and later to Ireland!’, Carrafiell exclaimed.

 

Original article: Expansión (by Marisa Anglés)

Translation: AURA REE

Picture borrowed from the web site of the fund.