• Transaction / Assets
    Former BBVA Staff Residence
  • Seller
    BBVA
  • Buyer
    Elaia Investment Spain
  • € MM
    8.7

Socimi Elaia Buys Former Staff Residence from BBVA for Hotel Conversion

12 February 2018 – Idealista

Real estate investment companies are continuing to star in real estate operations in Spain. On this occasion, the protagonist has been one of the latest companies to have debuted on the stock market: Elaia Investment Spain.

That vehicle, controlled by the Ruggieri family, one of the most wealthy in France, started trading its shares in October with a market value of €120 million. It specialises in assets linked to tourism and holds residential buildings, tourist apartments and hotels in its portfolio.

And it is in that sector that the Socimi plans to continue investing. On 7 February, it reached an agreement with BBVA to purchase the entity’s former employee residence in the town of Alfaz del Pi, in the province of Alicante.

The operation has been signed for €8.7 million and allows the Socimi to add more assets to its portfolio. The property has 140 rooms and spans a constructed surface area of more than 12,000 m2, located on a plot measuring 30,000 m2.

In this way, the complex has a large garden area, swimming pool, solarium, parking, tennis and frontón court, as well as a Social Club measuring almost 350 m2. With these facilities and its good location already in the bag (the residence is located just 200 metres away from the Playa del Albir, one of the most touristy municipalities in the Costa Blanca), the aim of the Socimi is to convert the property into a hotel complex.

According to confirmation provided by the French-controlled company to the Alternative Investment Market (MAB), the Socimi is in the process of marketing the property for its lease and the refurbishment work is in the process of being prepared.

According to explanations given by Manuel Climent, Director of transactions at JLL Hotels & Hospitality Group, who has acted as the advisor to the selling bank, “this operation confirms the interest from international investors in Spain and more specifically in holiday destinations. In 2017, more than 62% of the total transacted volume in holiday locations involved operations whose buyers were international. We expect this trend to continue during 2018, taking into account the strong operating results in the market and the growth forecasts”.

Original story: Idealista

Translation: Carmel Drake

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