Mazabi Strengthens Team And Plans To Invest €300M In 2015

15 April 2015 – Expansión

Mazabi Gestión de Patrimonios, the Spanish group that manages more than €650 million of real estate assets (on behalf) of several large wealthy Spanish investors, is strengthening its team at a time that it considers is “optimal for investing in the real estate sector in Spain”. It has just recruited Jamie Pazos from Grosvenor Fund Management, as (its new) Director of Real Estate Projects. The executive has more than 12 years experience in the sector.

Alongside him, Marta Tenorio, who was previously a senior auditor at Deloitte, will be the Head of Financial Control for Mazabi’s projects.

The company is planning to invest around €300 million in real estate projects in Spain during 2015, together with its domestic and international partners. The firm is focusing on shops and offices in the major cities around the country, as well as on the hotel sector.

Mazabi recently launched an investment club with Citi, comprising HNWIs from around the world – mostly of Latin American and Middle East origin – to invest at least €200 million, which could amount to up to €400 million with leverage, in Spanish property over the next three years.

Original story: Expansión (by A. Antón)

Translation: Carmel Drake

Citi Establishes an Investment Club For Foreign Fortunes Willing to Buy Spanish Property

5/12/2014 – Expansion

In spite of the challenges the financial and economic crisis keeps putting in front of Spain, the country is a tidbit from the investment point of view and world’s biggest fortunes took it at the aim.

In order to streamline the increasing interest, above all in the Spanish real estate, Citi and its local partner Mazabi decided to create an investment club for the grand property managers.

Fernando Lopez Muñoz, the General Director and the Head of Citi Private Bank for Spain, Italy, Portugal and Latin-America inside the EMEA (Europe, Middle East and Africa), explained that ‘the club foresees spending a minimum of €200 million in the country, an amount which, if leveraged, could rise to €400 million‘.

The investee ‘will comprise equity of 15-20 families owning a minimum of €100 million worth of property each. They will declare a soft commitment, meaning an input of €10 million for opportunities proposed by Mazabi‘, the executive pointed out.

‘Great majority of groups belonging to the club – which is still being constituted – proceed from Southern America (mainly from Mexico and Chile) and the Middle East, but also U.S. investors are among its members. From Europe, some interest was shown in the United Kingdom and in Spain itself’.

‘The vehicle should disburse the equity within a three years’ term which is extendable to five years. In any case, we believe the core of the investment will be sealed in 2015 and in the first quarter of 2016′, Mr Lopez said.

Bearing in mind the current point in the cycle and the experience from other investment clubs enhanced by Citi Private Bank, the director estimates that the Internal Rate of Return (IRR) may post 15% annually.

A Value-Adding Partnership

Mazabi, specialized in detecting opportunities on the Spanish territory, has intially pointed at assets located mainly in Madrid and Barcelona, and also in Bilbao, Valencia, Seville and other provincial main cities. The properties are of residential, tertiary, industrial and hotel types.

Lopez underlined that ‘Mazabi is not a mere intermediary broker but a partner who adds a huge value to the partnership‘. In fact, Mazabi has been providing real estate advisory services to Citi since 2010.

Citi Private Bank, having USD 310 billion  under management, employs 24 private bankers in Spain. Each of them works with 20 clients and it is predicted that next year, two to four more experts will join the team.

‘One of the main indicators of this business is soaring up in the country: the potential of property management services, cooperating together with private banking and equity markets’, Lopez remarked.

 

Original story: Expansión (by Ana Antón)

Translation: AURA REE

Mazabi Spends €32 Mn on a Housing Estate in the Center of Madrid

12/09/2014 – El Confidencial 

Mazabi Gestión Patrimonios has acquired a residential estate (pictured) including 103 apartments and 106 parking spaces in the Spanish capitals center.

This multi-family office aims at marketing the property as a whole or flat by flat. The Rios Rosa neighborhood where the complex stands is very attractive and Mazabi also wants to take advantage of the appeal for renting purposes.

The complex consists of 3 residential buildings spreading over the total area of 7.117 square meters, divided among 1- and 2- bedroom units, retails and more than one hundred parking spaces.

With the deal, Mazabi has invested €70 million in real estate year-to-date. Convinced that the resi market of the capital is awaking, the company sealed the transaction together with national and Latin American partners.

Although its business plan mainly focuses on retails and offices, from time to time Mazabi buys property in the residential or the holiday sector.

In order to insure better targeting of the real estate operations, the multi-family office created an investment club open to foreign equity willing to grow in Spain.

 

Original article: El Confidencial (by R. Ugalde)

Translation: AURA REE

CatalunyaBanc Sells Headquarters on Recoletos St. in Madrid to Mazabi Gestión

10/07/2014 – Expansion

CatalunyaBanc continues sales of its non-core assets before its own privatization. The nationalized entity controlled by the Fund for Orderly Banking Restructuring (Frob) has signed an agreement on transfer of an office building in the center of Madrid with Mazabi Gestión de Patrimonios, a real estate investment company belonging to eight Spanish family offices. The price is said to oscillate around €12 million.

The 2.157 square meter property is situated at 15 Recoletos Street and it has been housing a part of the central headquarters of CatalunyaCaixa for the last years. Currently, the building stands empty but Mazabi aims at refurbishing it and renting as a corporative premises.

The real estate group associates eight large family offices from Aragon, the Basque Country, Castille and León, Madrid and Barcelona, looking out for assets both in Spain and outside the country, also investing with other groups. On this occasion, Mazabi buys the building from Catalunya Banc together with southern-American investors. In total, the company manages assets valued at €650 million.

Apart from this divestment, CatalunyaBanc shed several stakes in various firms. To illustrate, few weeks ago the bank transferred a lot of holdings to French fund Salvepar for €11 million. Another examples are the underwriting Applus+ in the stock exchange and the sale of its property servicer to Blackstone and Magic Real Estate.

While Catalunya Banc struggles to meet the restructuring requirements, Frob gives the finishing touch to the entity´s sale. At least four groups have submitted their offers. Santander, CaixaBank, Société Générale and BBVA lead in the bidding.

The key movement before the bank´s sale is the transfer of its soured loan portfolio valued at €6.5 billion, desired by five international fund-bank teams: Soros & Värde Partners, Apollo, Centerbridge & Lone Star, Pimco, Marathon, Oaktree, Deutsche Bank & Finsolutia, Cerberus & Goldman Sachs, and finally Blackstone & TPG. Frob will invest in the NPL portfolio together with finalists.

 

Original article: Expansión (by Jorge Zuloaga)

Translation: AURA REE