17 November 2016 – Cinco Días
Drago Capital has acquired 75% of the company Foujita 16, which owns three plots of urban land in Estepona (Málaga). The fund will construct its second housing development on the Costa del Sol on the plots. This project comes after Drago Capital made its first move into the construction sector with the Ocean Hills residential development.
The company has launched itself into the residential market on the Spanish coast. Until recently, funds of this kind invested almost exclusively in tertiary assets (offices, shopping centres and logistics platforms), but the economic recovery and the slight improvement in the property sector has led domestic and international investors alike to search for high returns in the construction of homes. In the case of the Spanish firm, it is firmly committed to the Costa del Sol.
The real estate fund has acquired 75% of Foujita, a Málaga based company that owns three plots of urban land in Estepona. These plots are adjacent to the existing urbanisation that Drago has already built in the area (Ocean Hills), near the Selwo adventure park, where 62 homes have already been built.
Drago will construct 136 apartments on the three new plots, which will be followed by two new developments containing 28 and 33 additional homes. In total, it will build around 260 homes on the Málagan coast, on a plot of land that has a buildable surface area of 30,000 m2.
The fund is making its investment through its subsidiary Esvernia Investments, the same company that developed Ocean Hills. The firm plans to spend between €30 million and €35 million on the development of the site. Several individual investors will join Drago in the project.
Original story: Cinco Días (by Alfonso Simón Ruiz)
Translation: Carmel Drake