11 March 2016 – Press Release
Distressed luxury portfolio offers residential repositioning opportunity.
Resolution Property is re-entering the Spanish real estate market with a €100m joint venture to reposition a portfolio of luxury residential, hotels and land in Marbella.
The UK-based real estate investor is forming a 50:50 joint venture with a private investment partner to manage an existing €50m portfolio comprising 15 value-add assets in Marbella’s Golden Mile. The joint venture intends to invest up to a further €50m by growing the portfolio through distressed acquisitions and value-add asset management.
Resolution Property will provide expertise in niche residential repositioning, together with retail and leisure know-how, to complement its joint venture partner’s proven track record in the local area.
Michel Nangia of Resolution Property said:
“Marbella is a sheltered market, sustained by international high net-worth individuals. Furthermore, the wider Spanish economy continues its recovery, with declining unemployment and consistently positive GDP growth over more than two years. Against this backdrop, we have the opportunity to add significant value to this portfolio through an active asset management and refurbishment programme, and then grow the portfolio alongside a strong partner with access to off-market distressed opportunities on a scale enabling a future conversion into a Socimi.”
The joint venture represents the final investment for Resolution Real Estate Fund IV. It follows Resolution Property’s delivery of similar residential repositioning ventures in Switzerland and Denmark.
Resolution Property was an active investor in Spain and Portugal’s retail markets in the mid-2000s. The Marbella venture represents its return to the Spanish market, which it will also target for further acquisitions on behalf of its next fund, Resolution Real Estate Fund V, in which China’s Fosun Property will be the cornerstone investor.
Original story: Press Release
Edited by: Carmel Drake