Portobello Capital to Sell Year’s Largest Portfolio of Hotel Assets

8 November 2019 – Portobello Capital is selling the properties where the Blue Sea Hotels & Resorts chain operates for an estimated 230 million euros. The sale, which would be the largest of the year, would separate the properties from Blue Seas’ hotel management business.

The portfolio of properties includes sixteen assets with a total of about 3,300 rooms.

Original Story: El Economista – Alba Brualla / Araceli Muñoz

Adaptation/Translation: Richard D. K. Turner

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

 

Vitalia Buys 2 Plots for the Construction of Private Nursing Homes

5 February 2019 – Alimarket

The nursing home management group Vitalia Plus has confirmed to Alimarket its intention to continue incorporating new projects and acquiring residences in operation in Spain. In recent days, Vitalia has signed agreements for the purchase of two plots of land in Valencia and Salamanca, cities where the firm has not had a presence until now. In the case of Salamanca, Vitalia is planning to build a private nursing home in the city with 130 beds and 30 day spaces. Meanwhile, in Valencia capital, the group will build 128 residential spaces and 30 day spaces. Two other plots are expected to be added to those two new projects, whose purchase the group is currently negotiating in two other Spanish cities.

The new projects form part of a second phase of investments planned by Vitalia, worth more than €100 million, which the group will finance with own funds (more than €50 million) and a €50 million loan, requested recently from the European Investment Bank (….).

Currently, besides the new homes announced in Valencia and Salamanca, Vitalia has 22 other nursing homes in different phases of completion – including the Vitalia Expo in Zaragoza, Vitalia Toledo and the expansion of one of its centres in Teruel (…) – which contain 3,443 beds in total (3,701 beds including the new projects in Valencia and Salamanca). These centres will be added to the 44 nursing homes that the group manages in Spain, with 6,461 beds (…).

Since March 2017, the group Vitalia Plus has been controlled by the investor CVC Capital Partners (which owns an 80% stake), whilst the investor Portobello Capital owns 10% and the executive President and founder José María Cosculluela Salina holds the remaining 10%. In 2017 – the most recent data available – Vitalia recorded a consolidated turnover of €91.05M with 2,850 workers.

Original story: Alimarket (by Eva de Frutos)

Translation: Carmel Drake

CBRE: Hotel Inv’t Will Exceed €3,000M In 2017

10 October 2017 – Observatorio Inmobiliario

The summer holidays led to a slow down in hotel investment in Spain during the third quarter of 2017, after 6 months of euphoria and record-breaking deals, when more than €1,400 million was invested. By contrast, investment volumes reached just €240 million during the months of July, August and September, which represents a 55% decrease compared to the same period in 2016.

Nevertheless, the most significant operations of the quarter took place during the month of September, which, together with the major sale and purchase operations that are in the pipeline, suggests that hotel investment in Spain will accelerate again during the last few months of the year, according to CBRE Hotels. The consultancy predicts that the volume of investment may reach €3,000 million in 2017, which would represent a historical record, exceeding even the figure registered in 2015.

According to data collected by CBRE Hotels, between July and September, investors spent €240 million on the purchase of hotel assets, including not only hotels per se but also tourist apartments, aparthotels and plots of land and buildings dedicated to hotel use. In total, 22 assets were transacted (involving 2,500 rooms), with holiday hotels accounting for the lion’s share (65%) of the total amount invested (and representing 80% of the rooms sold).

In terms of the destination of investments, in the urban sphere, deals were very evenly distributed between Spain’s main cities: Madrid, Barcelona, Málaga, Granada, Valencia and Bilbao. Nevertheless, in the holiday segment, investors spent 45% of their total investment in the two archipelagos (i.e. in the Canary and Balearic Islands).

In terms of the most significant operations, within the holiday perimeter, the acquisitions undertaken by Portobello Capital stand out – it was the most active investor during the third quarter of the year, starring in the purchase of several assets/stakes in hotels managed by Blue Sea Hotels & Resorts. In the urban segment, the most high-profile purchase involved Hotel Parque Central de Valencia by Senator Hotels & Resorts.

In the end, and just like during the first two quarters of the year, CBRE Hotels also brokered two operations during the third quarter. Firstly, it intermediated the sale of Hotel Dolce Sitges (5* and 263 rooms), which also became the most significant transaction of the quarter (in both the hotel and urban segments). On the other hand, the company executed the sale of a plot of land in Bilbao destined for the construction of the first hotel in the city of the Catalonia Hotels & Resorts chain. For Jorge Ruiz, Director of CBRE Hotels in Spain, “the unprecedented performance of the hotel sector during the first half of the year, both in terms of investment and operations, added to the volume transacted during the third quarter and the projects underway, suggest that investment in the sector could reach €3,000 million this year, whereby exceeding the record set in 2015”.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

JLL: RE Inv’t Amounts To €8,697M In 9 Months To Sept 17

2 October 2017 – El Mundo

The Spanish real estate sector is recovering in leaps and bounds to the position it was relegated from during the years of the financial crisis and is becoming an object of desire once more for domestic and overseas savers alike. Proof of this is the fact that investment in the sector to date this year amounts to €8,697 million. As such, it is already approaching the total volume of investment recorded in the whole of 2016 (€9,508 million). In other words, with three months to go until year end, the cumulative annual investment figure already represents 91.46% of the prior year figure (…), according to data compiled by the consultancy firm JLL about direct investment in the tertiary sector – hotels, logistics, retail and offices – and the residential segment.

The data does not include indirect investment or corporate operations, however, it does reflect two of the trends that are marking the recovery of the real estate market in Spain: the boom in retail and the renewed interest in residential. Not in vain, investment in both sectors during the nine months to September has already exceeded the total for last year.

In terms of retail, major operations, such as the sale of the Mercado de San Miguel and the Mercado de Fuencarral in Madrid for €70 million and €50 million, respectively, contributed to boosting the investment volume to €3,267 million by the end of Q3, compared with €2,977 million for 2016 as a whole. Sources at the consultancy firm estimate that the total investment figure for the year may exceed €4,000 million and they forecast that it will be “a record year in the segment due to the number and volume of operations closed or in progress”.

Meanwhile, investment in the residential segment during the first 9 months of the year amounted to €1,188 million, compared to €802 million for the whole of last year. The data follows the positive trend of other indicators such as house prices – which rose by 5.6% in the second quarter of the year compared to the same quarter in 2016, according to the National Institute of Statistics (INE); sale and purchase operations, which grew by 14.7% during the same period; and the number of mortgages constituted, which rose by 32.9% in July in YoY terms (…).

It is not the only segment of the market to see such dynamism, given that the fever has also reached the office market. At the end of the third quarter, the sector had recorded investment of €1,759 million compared with €1,541 million during the same period last year. Sources at JLL highlight that the market in Barcelona, where the volume during YTD September (€714 million) is already 37% higher than 2016 as a whole, may end this year with double the investment figure recorded last year (…).

It may also be a record year for the logistics segment, where cumulative investment to date amounts to €578 million, around €100 million higher than during the first three-quarters of 2016 (…). The increase in consumption and the arrival of Amazon are marking the reconfiguration of that sector, especially in large urban areas (…).

Meanwhile, in the hotel sector, investment to September exceeded €1,900 million, which represents 85% of the figure recorded for last year as a whole. Changes in portfolios have been the stars in recent months, including transactions such as the purchase by Portobello Capital of a portfolio of resort hotels for €40 million.

Original story: El Mundo (by María Hernández)

Translation: Carmel Drake

Portobello Capital Buys Blue Sea Hotels For c. €70M

9 March 2017 – El Economista

The private equity fund Portobello is on a roll. According to sources consulted by El Economista, the firm has purchased the hotel chain Blue Sea for around €70 million.

The transaction involves the acquisition of 17 hotel establishments, located mainly in the Canary Islands and the Balearic Islands, plus two that the hotel chain owns in Morocco (one in Berkane and one in Marrakech). The hotel chain’s turnover amounts to around €50 million. Sebastiá Catalá will continue to lead the company – he will also retain his 5% stake – meanwhile, Portobello has recruited Franciso Gimena (ex-Globalia) for the role of Vice President.

As a result of this operation, the fund controlled by Íñigo Sánchez-Asiaín, Juan Luis Ramírez, Ramón Cerdeiras and Luis Peñarrocha will make its debut in the tourist sector, a business that it has been interested in for a while, given the positive performance of the market in Spain. In this regard, the country received 75.3 million tourist visitors last year – which represents an increase of 9.9% with respect to 2015 – of which, almost 25% opted to visit the Balearic and Canary Islands, where Blue Sea has its star hotels. The hotel chain also has a presence in Madrid, Torremolinos (Málaga) and Benidorm (Alicante).

PE house on a roll

Portobello Capital is enjoying one of its best periods since it was founded in 2011 by former partners of Ibersuizas. Its first investment vehicle has been invested in its entirety in record time – in fact, the firm has received several awards in recent months for its operations – and it has now completed several divestments, such as of its geriatric business (Vitalia Plus), which it sold on Monday to the fund CVC Capital Partners for between €200 million and €250 million.

Original story: El Economista (by Araceli Muñoz)

Translation: Carmel Drake