• Transaction / Assets
    Hostel In Madrid
  • Seller
  • Buyer
    Excem (through Situr)
  • € MM

Excem Launches 2nd Socimi & Spends €22M On 1st Asset In Madrid

31 July 2017 – Eje Prime

Excem is on a roll. The company has just launched its second Socimi, Sociedad de Inversión Turística (Situr), dedicated to hostels and tourist apartments. The group, led by the Hatchwell family, will invest €250 million on the launch of this new investment vehicle, which will be led by Amir Yerushalmi, former director of the US fund Gaia. Moreover, the new entity has just acquired its first asset in Madrid for €22 million.

In March, as Eje Prime announced, the company activated its second company specialising in hostels for young people, whereby following the roadmap drawn by the group when it proposed the project, which also includes the creation of a third Socimi specialising in assets destined for use as co-working spaces.

The company constituted the hostel business, which operates under the name Excem Capital Partners Hospitality, and which at the time had just one administrator, Philip Hatchwell Altarar.

The investment to be undertaken by this second Socimi will amount to €250 million between now and 2018, approximately. The company has set itself the objective of owning 3,500 beds in a dozen buildings, primarily in Madrid and Barcelona, as well as in other tourist cities around the country.

Excem’s second project responds to a “latent demand”, according to the company, which maintains that each year young people from all over the world spend more than $230,000 million travelling and that there are only six companies in the world specialising in offering them high-quality accommodation at competitive prices.

With the company structure already in place, Excem has acquired its first asset through Situr. The company has purchased an asset located at number 3 on Calle Postigo de San Martín, in Madrid. That property, which is located opposite the Monasterio de Las Descalzas and Puerta del Sol, has a surface area of 4,000 m2 and 400 beds. Excem has spent €22 million on this purchase.

Excem’s second Socimi has been created with the aim of acquiring between ten and fifteen buildings, during the first phase and starting in Madrid, to build up a portfolio of 3,500 beds in the historical centres of the main cities in Spain, Europe and the USA, which will be managed as hostels.

In addition to this first asset in Madrid and a second committed property in Málaga, Situr has already chosen more than 30 buildings in main cities across Spain to continue its acquisition plan. According to the company, “we expect to undertake a capital increase for Excem Socimi Situr between September and December 2017 and start to debut on the MAB in 2019” (…).

Original story: Eje Prime (by C. Pareja)

Translation: Carmel Drake