Drago Capital Enters Residential Development Segment

29 December 2015 – Cinco Días

Property development is becoming a business opportunity for companies in the real estate sector once  again, following the severe crisis that began in 2008. Even for the least conventional players, such as Drago Capital, an investment fund that normally acquires other kinds of assets like office buildings and commercial premises.

The fund has started to develop a new urbanisation, dubbed Ocean Hills, in the vicinity of Estepona (Málaga) on the Costa del Sol. It represents its first major project targeted at the second home market and the development comprises 62 apartments.

Drago Capital identified the business opportunity in an unfinished development, which it acquired in December 2014, and which it has completely redesigned.

In total, the initial investment amounted to €8 million, which was sourced mainly from a number of family offices, according to the managers of the fund.

Type of apartments

The managers ruled out a development on the beachfront and instead, consider that more value can be obtained inland. The homes are located next to the Monte Selwo park, in a natural environment and with views of the Mediterranean Sea.

62 modern homes will be constructed with a maximum of two bedrooms and all with spacious terraces. Construction will centred around four, three-storey blocks of flats. The marketing of Ocean Hills will be targeted primarily at overseas buyers, mainly in the North of Europe and in the UK. The first part of this urbanisation has already been sold in its entirety to a group of Norwegian citizens.

Project details

The development is being constructed on a plot of land measuring 7,000 m2 and there may be an opportunity to construct new buildings on two adjoining plots, which would add another 7,000 m2.

The contract for the construction work has already been awarded to Avintia, which will complete the construction of the homes and resume the work that was suspended before Drago Capital’s purchase. The homes are expected to be finished by the end of 2016.

Drago Capital considers that the market for second homes, with the characteristics found in this development, has returned and it regards this investment as a good opportunity. Moreover, its managers consider that the Costa del Sol area in general, and both Marbella and Estepona specifically, represent places with significant demand.

Original story: Cinco Días (by A. Simón)

Translation: Carmel Drake

Iberostar Adds Two 4-Star Hotels To Its Portfolio

19 November 2015 – Expansión

Iberostar, the Mallorcan hotel group controlled by the Fluxá family, has incorporated two new hotels into its portfolio – one in Ibiza, its first on the Balearic Island, and the other in Estepona (Málaga), its sixth in Andalucía. The 4-star establishments will both open their doors next year.

Original story: Expansión

Translation: Carmel Drake

CTH Capital Awarded ‘Golf Hills Village’ Complex In Estepona

21 January 2015 – El Mundo

The complex has 152 homes, with a total surface area of 14,762 square metres.

It is a particularly attractive asset for international developers and investors.

The company CTH Capital has been awarded the residential complex Golf Hills Village through an auction organised by the property consultant BNP Paribas Real Estate. The property, located in Estepona, in the area known as Selwo, has 152 newly built homes. In total, the above ground surface area occupies 14,762 square metres.

“Transactions such as this one highlight the growing interest in the Spanish real estate sector from international investors. In this sense, the Costa del Sol has a clear advantage since it is a landmark tourist destination and also benefits from high quality infrastructure”, says CBRE, a company that advised CTH Capital in its purchase of the complex.

The auction was conducted through sealed bids in the presence of a notary and had the distinction of being the first in Spain of an asset under construction. Nevertheless, the building work at the complex is in the advanced phase, with more than 95% of the basic project now complete.

An attractive asset for international investors

“As we explained during the presentation of the auction, the characteristics of this asset made it particularly attractive for international developers and investors, which has been proven at the close”, says Irene Valbuena, Head of Auctions at BNP Paribas Real Estate. “Furthermore, the transaction confirms the interest of international investors in Spanish assets and shows how they are adopting value-added strategies to enter into our market, such as in this case, where the construction work still needs to be completed”.

CTH Capital is dedicated to the management and investment of real estate, and is based in London, UK. The company specialises in direct investments with a special focus on investments in hotels and second homes.

CTH Capital has made its investment under a joint venture with the property developer and constructor, JAMSA, which has more than 40 years of experience developing property in Spain and overseas (Dominican Republic, Florida, Romania).

Original story: El Mundo

Translation: Carmel Drake