The Man Who Triumphed With the Arts Hotel Raises a €400 Mn Superfund

27/05/2014 – El Confidencial

Xavier Faus returns to the Spanish real estate market. His fund Meridia Capital joined forces with Patron Capital and raised €400 million which will be intended for investment in property. Faus made his fortune by intermediating at the purchase of the Hotel Arts in 2001 and now he turns back to the market with a fund comparable to the largest Socimis (Spain´s REIT firms) born recently, Hispania and Lar.

According to sources from the sector, Meridia Capital contributes with €150 million, whereas Patron Capital puts up €250 million. Out of the €150 million, around €70 million comes from Al Thani, Qatar´s royal family, and the rest from the Israel and Belgium biggest fortunes. The new fund will carry the name of Meridia Iberian Real Estate Fund.

Faus founded Meridia Capital Hospitality I in 2007 but he bet on France and Brazil rather than on Spain. With the new fund, he is going to focus only on this country.

Prior to creating his own fund, Xavier Faus worked for the Cuatrecasas lawyer office and later on, he worked as an advisor at Deutsche Bank. In 2001, the bank bought the Hotel Arts and named Faus as its administrator. Around 16% of the property was sold to Patron Capital. 

In 2007, Deutsche Bank, Patron and Faus sold the Hotel Arts to Host Hotels & Resorts, Stichting Pensionfonds ABP –a Dutch pension fund– and Jasmine Hotels Pte Ltd, a branch of GIC Real Estate Pte Ltd., real estate investment society belonging to the Government of Singapur.

The transaction brought €417 million with over €129 million in capital gains for the sellers.

Faus´s fund is not the only one in the Spanish market that has been created with view to property acquistion. José María Xercavins, ex-manager of Metropolis, has raised a €150 million fund held by the De Agostini family, the Costafredas and Silvio Elías, among others.


Original article: El Confidencial (by Marcos Lamelas)

Translation: AURA REE