FS Capital Finalises Joint Venture with Spain’s Espacio to Develop Residential Housing in the Iberian Peninsula

13 April 2018

Inmobiliaria Espacio, a real estate development company, owned by Grupo Villar Mir, announced the conclusion of a joint venture agreement with FS Capital (owned by Portugal’s Finsolutia) to build more than 1,000 houses in Spain and Portugal in the coming years.

FS Capital, which is a carve-out (partial spin-off) of Portugal’s Finsolutia, has established a joint venture with Spain’s Inmobiliaria Espacio to develop residential housing in the Iberian Peninsula.

Finsolutia, which is led by Nuno Espírito Santo Silva, acted as an investment advisor for the operation.

Inmobiliaria Espacio, which is owned by the Villar Mir Group and has been in operation for 45 years, announced Thursday that it had finalised a joint venture agreement with FS Capital (owned by Portugal’s Finsolutia). Through funds that FS Capital manages, the two companies plan to develop more than 1,000 houses in Spain and Portugal in the coming years.

The joint venture resulted in the creation of Espacio Living Homes. Funds advised by FS Capital hold 75% of the JV’s capital, while Espacio owns the remaining 25%.

FS Capital is led by Nuno Ravara and Francisco Jonet and is the trademark of Principal Advisor EAFI, which is an investment advisory company regulated by the CNMV, specialised in real estate and credit in Spain and Portugal.

FS Capital advises on assets worth approximately €300 million held by institutional investors and “has a team of highly qualified professionals with extensive experience in investments in a wide range of assets, geographies and capital structures,” the statement said.

Inmobiliaria Espacio is a real estate company owned by Juan-Miguel Villar Mir’s OHL construction group, and “has proven experience in the global management of real estate assets and consultancy in planning, management and urban development, as well as in the coordination and management of construction projects.” The two companies have formed an alliance that will invest up to 400 million euros in land or real estate assets in the Iberian Peninsula.”

The JV begins operations with four real estate projects that are expected to take off in the coming months, with locations in Madrid, Valladolid and Levante.

The negotiations were finalised after several candidates were invited to take part in a restricted process, and most of the candidates demonstrated an interest in becoming Espacio’s strategic partner for real estate development. The consultancy Aiga Advisory advised Espacio on the transaction, in collaboration with PwC, which led to “a deal that was closed in record time,” the note reads.

With this new investment, both FS Capital and Inmobiliaria Espacio demonstrate their commitment to taking part in the recovery of the sector in the Iberian Peninsula, stating that they believe the area to have considerable potential.

Original Story: Jornal Econômico – Maria Teixeira Alves

Translation: Richard Turner