Investment Funds Eye Thomas Cook’s Assets in Spain

30 September 2019 – International investment funds are already circling over Thomas Cook’s assets in Spain after its bankruptcy last week. Investor interest is focusing on the Balearic Islands, where Cook operates about 20 units.

Blackstone has recently been the most active buyer in the Balearic Islands through its hotel division, HI Partners. The groups Atom Hotels, Portobello Capital, Covivio, CBRE Global Investors, Corum AM, Elaia Investment, Apple Leisure Group, KKR and Hispania are also active in the region.

Beyond the failure of Thomas Cook, a recent fall in tourist arrivals from Germany has also put pressure on some small and medium-sized operators, providing more fodder for the mill.

Original Story: Preferente

Adaptation/Translation: Richard D. K. Turner

 

French Fund Corum AM Acquires Hotel Cartagonova in Cartagena

6 December 2017 – La Verdad

One of the flagship hotels in the Murcian city of Cartagena is changing hands. The French investment fund Corum AM has acquired the 4-star Hotel Cartagonova, located on Calle Marcos Redondo. The property is going to be operated by B&B Hotels on a lease basis for at least fifteen years, according to a statement issued yesterday by the international chain.

The amount paid for the economic operation has not been disclosed. The establishment is going to be renamed B&B Hotel Cartagena and will see 100 rooms of varying sizes go on the market, ranging from individual rooms to suites and family rooms – all of them have been redesigned and modernised in recent years. Moreover, the hotel has a lobby, a meeting room, 31 underground parking spaces and several free services for its guests. According to the buyers, the condition of the facilities is very good, and so they only plan to carry out minimal changes to bring the property in line with the standards of B&B Hotels. The company defines itself as a specialist in “comfortably designed accommodation, offering select high-quality services, at an attractive price”.

The interest from the hotel company in establishing a presence in the tourist city, which is “growing fast” and benefits from a strategic location, has been key to the success of the operation. Its executives have not failed to notice that the port of Cartagena is the country’s fourth busiest in terms of goods traffic. Moreover, the hotel is positioned in a very central location, both for those travelling for pleasure and for business.

“The new B&B Hotel Cartagena has excellent facilities and an unbeatable premium location. It has been designed carefully and will allow us to continue offering our guests high-quality accommodation at an unbeatable price across Europe”, said the chain’s Director of Expansion in Spain, Teresa Pérez.

The company that operates the property formerly known as Hotel Cartagonova owns twenty establishments all over Spain. It closed the first half of this year with a turnover of €13 million. In recent months, it has opened hotels in Madrid’s Puerta del Sol and in the city of Vigo.

Original story: La Verdad (by Gregorio Mármol)

Translation: Carmel Drake

French Fund Corum Will Invest €450M-€500M In Europe In 2017

8 March 2017 – Expansión

The real estate fund manager Corum Asset Management has placed its focus on Spain. The firm, created in 2011 and with offices in Paris and Amsterdam, has closed 2016 with a record investment figure of €328 million.

In the case of Spain, the manager chose the market to carry out its first operation outside of France, acquiring its first asset in 2013: a retail property in Tarragona, which is leased to MediaMarkt.

Three years later, in May last year, Corum sold that asset to a fund managed by Ciloger for €9.43 million. “2016 was a record year in terms of transactions, with a deal volume amounting to €360 million, of which €328 million involved acquisitions. In addition, we made our first sale in an overseas market in 2016, in this case in Spain, where we achieved a significant return”, explained Philipp Cervesa, Head of Investments at Corum AM.

Besides that sale, the French manager closed three purchases amounting to €41.4 million in Spain, involving logistics assets, during the year. Specifically, in April, it acquired two platforms in Gerona and Guadalajara, with a combined surface area of 35,670 m2. Three months later, Corum AM paid more than €24.8 million for a logistics building leased to the company Trabis. “Our strategy is to bet on real estate cycles. We are investing in Spain because it offers good diversification and is a very dynamic market”, said Cervesi.

Both operations achieved a return of around 7.6%. “We invested heavily between 2013 and 2014, when the market fell, and thanks to that, we have undertaken some good deals, such as the sale of the property leased to MediaMarkt, which we sold last year for a hefty profit”. A high return that the manager forecasts it will maintain in 2017. “We are looking for assets with long-term lease contracts and high returns, of around 7%, he added.

This year, the manager, which invests directly through an Asset Management fund, has set itself the objective of increasing its portfolio to €500 million. “Our strategy for 2017 is to invest between €450 million and €500 million in the Eurozone. We have not set ourselves any country limits, which means that we could buy an unlimited amount in Spain”, explained the Head of the fund.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Corum Convictions Sells Retail Outlet In Tarragona For €9.43M

31 May 2016 – Mis Locales

The real estate consultancy BNP Paribas Real Estate has advised Corum Convictions, the real estate investment company owned by Corum Am, regarding the sale of a retail outlet in Tarragona worth €9.43 million.

The asset, located in the Les Gavarres shopping area in Tarragona is leased to Media Markt, the European leader in the sale of domestic appliances and high quality IT equipment.

The property has been acquired by Actipierre Europe, the real estate company owned by Ciloger, which, in turn has been advised by Invesco Real Estate to carry out the transaction. Corum Convictions applies an open and opportunistic strategy to its investments with a high rate of distribution, and to this end, it invests in all types of assets (offices, shops, healthcare, hospitality, business, car parks…) both in France as well as across the Eurozone.

Vincent Dominique, Director of Corum Am, has said that “With this sale, we continue to drive our opportunistic acquisition and arbitrage strategy, which benefits from the effects of economic cycles. In fact, based on what we expected in 2013, the year in which the most recent economic cycle in Spain bottomed out, both in terms of the macroeconomic environment and the real estate investment sector, the decrease in rates has allowed an increase in asset values, which has resulted in high and secure rental income and first-rate tenants”.

Original story: Mis Locales

Translation: Carmel Drake