Tag: Sotogrande

La Zagaleta’s Owners To Build Luxury Homes For Millennials

30 April 2017 – Expansión

Located in the municipality of Castellar, in Cádiz, alongside the exclusive urbanisations of Sotogrande and Valderrama, the latest estate in the area is awaiting approval from the Town Hall to become a modern and luxurious residential resort. The site will also include a first-rate golf course and a five-star hotel. The project in question is Valderrama 2, an estate with a surface area spanning 220 hectares, which was acquired by the company La Zagaleta Limited last year.

The firm, which is headquartered in London and which owns another luxury residential development, known as La Zagaleta, purchased the Valderrama group, the company that owns this plot, as well as a golf course of the same name, regarded as the best in Spain and one of the best in the world, in an operation worth €40 million (…) in December 2015 (…).

The new project from the owners of La Zagaleta, considered the most luxurious urbanisation in Europe and located in the Malagan municipality of Benahavís, will also be for millionaires, but with certain differences. “In La Zagaleta, there are two lines: one with homes worth between €5 million and €8 million and the other with homes worth more than €11 million, which is the line we are promoting. Valderrama 2 is a different concept, its homes are worth between €3 million and €5 million, which buyers can easily finance if they want”, said Ignacio Pérez, Director of Business Development at La Zagaleta.

An integrated resort

Similarly, the new development, which will have a maximum of 200 homes, with plots of between 2,000 m2 and 3,000 m2, will be targeting a different public to La Zagaleta. (…). “The idea is to build homes without fences, like in Los Angeles or Florida, where you can see without being seen, which will incorporate the latest developments to meet the demands of the millennials”, he added. The objective of La Zagaleta is to sell these homes in advance so that its clients can personalise them during their construction. (…).

La Zagaleta expects construction to begin within three years. (…).

In total, the group expects to invest €200 million of its own funds developing the urbanisation over a ten year period, although that figure could rise to more than €400 million. “We will get on with building the homes, at a rate of around 20 per year, for example. The logical thing is to finance them over the long term so that buyers can easily subrogate those loans and purchase the properties using minimal own funds”.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

The Seven: Sotogrande Unveils Its Latest Ultra-Luxury Villas

11 April 2017 – Cinco Días

Unless you have €5,000 a month to spent on the service charge, then these exclusive villas are not for you. In fact, they are a concept that has rarely been seen anywhere in the world: a residential development comprising seven homes, each of which is going to be designed by an internationally-renowned architect, in a natural setting designed by a famous landscaper. The development is called The Seven. And it is the latest ultra-luxury initiative in Sotogrande, San Roque (Cádiz).

Sotogrande is undergoing a complete transformation. Established in 1962 by the millionaire Joseph Rafael McMicking, a businessman of Filipino origin, it quickly became one of the poles of attraction for domestic and overseas millionaires alike. Following the purchase from NH Hoteles in 2014 by the funds Cerberus and Orion, for €225 million, the management company has spent a while reflecting on what this urban complex in the Mediterranean should look like in the future. And the answer came from the past. “When you look at the history of Sotogrande, everything revolves around exclusivity and quality”, explains Marc Topiol, CEO of the company. (…).

The villas will crown a small outcrop in one of the highest areas of Sotogrande, with views over the sea, in the closed reservation of La Reserva, spanning 467 hectares. Construction of these dream homes, in the middle of this natural setting, will begin this year, with the aim of selling the properties by 2020.

The company has chosen seven internationally renowned architects to integrate their designs into The Seven (…).

A home in The Seven will cost between €14 million and €18 million. Each property will have a surface area of between 1,800 m2 and 2,400 m2, with the main bedroom measuring more than 120 m2. All of the homes will be equipped with everything a millionaire could wish for: a private spa, indoor and outdoor swimming pools, a cinema and gym. “We will take care of everything. From paying bills to maintaining the garden and the home, opening up the home when the owner so requests, daily room service, chef, shopping, cleaning, restaurant reservations, transport, it will be live living in a hotel”, says Topiol. All for €5,000 per month (excluding extras).

In addition, residents will enjoy use of the shared facilities that Sotogrande has designed for La Reserva: a spa resort, one of the largest navigable lakes in Europe, tennis courts, golf, an artificial beach, a beach club….in an investment made by the company amounting to €40 million. Not to mention the well-known facilities at the urban complex, such as the Santa María Polo Club, horse riding facilities, the port and the famous golf courses, such as Valderrama and Real Club de Sotogrande. (…).

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Patrizia Acquires Claudio Coello 108 For €22M

3 February 2016 – El Confidencial

Yesterday (Tuesday), the German fund Patrizia Inmobilien completed the purchase of a residential building on Claudio Coello, 108 for €22 million, from Grupo Lar and Pimco, according to sources close to the deal.

Specifically, the property, which is currently vacant, has a surface area of 5,318 m2 and previously formed part of the operation to purchase Juan Bravo, 3. In fact, the building is located just a few metres from that plot, which houses one of the most highly anticipated luxury developments in the capital. The building acquired yesterday will be converted into 14 luxury homes, measuring 300 m2 each, with two or three parking spaces per flat.

According to the latest report prepared by TecniTasa, these homes could have a market value of around €10,900/m2. Patrizia Inmobilien will undertake a complete renovation of the property, which will require an additional investment of €7.5 million – equivalent to around €1,500 per m2 – and the company expects the building work to take 18 months.

Patrizia is one of the largest investment funds in Europe, with a presence in 14 countries and total funds under management of €18,000 million. 40% of its portfolio is invested in residential assets, equivalent to approximately €8,000 million.

The fund arrived in Spain last year, led by Borja Goday, the head of Patrizia in Spain, and the former CEO of Sotogrande, with the intention of investing €1,000 million in the Spanish market. It closed its first operation in July last year with the purchase of the H&M store in Málaga from the Nergosa group and it raised its profile further by participating in the bid for Torre Espacio.

With this operation, the fund becomes one of the new players in the luxury residential market in the capital and demonstrates its strong commitment to the real estate recovery in Spain, given its conservative profile, in comparison with the speculative capital that has entered the market in recent years.

BDO has advised the vendor, whilst the firms CMS Albiñana and MMM have advised the purchaser.

Original story: El Confidencial (by R. Ugalde and E. Sanz)

Translation: Carmel Drake

La Zagaleta To Replicate Its Luxury Marbella Complex In Sotogrande

8 January 2016 – Expansión

La Zagaleta, one of Europe’s most exclusive residential developments, located on the Costa del Sol, is going to replicate its business model in Sotogrande (Cádiz), the other major hub for luxury real estate in Andalucía.

Through its English subsidiary, the group has acquired the prestigious Valderrama golf course from the British company MGI for €40 million. Moreover, it will invest another €200 million in the development of the project.

As an indication of its exclusivity, this sporting venue is the only place that has hosted the Ryder Cup in Continental Europe (in 1997). The Ortiz Patiño family converted it into a first-class facility in 1984 and since then the complex has been sold several times. La Zagaleta will continue to lease the venue to the golf club that currently operates there.

Several companies are included in the operation, which encompasses the residential estate, the land that is still undeveloped and the project for a new golf course in the municipal area of Castellar, in other words, Valderrama II. In total, the site covers 220 hectares. This plot is one of the few that has been granted a licence by the Junta de Andalucía to construct homes after IU (la Izquierda Unida or United Left (Political) Party) – which led the Ministry for Tourism under the previous government – approved a restrictive regional policy to limit urban expansion.

Residential and tourist properties

La Zagaleta’s plans include placing it in the “current golf course’s frame of reference” and constructing a residential tourist and hotel resort “in keeping with the quality standards synonymous with La Zagaleta”. Thus, it will develop villas and homes on this land, which will require additional investment of €200 million over the next ten years.

According to a statement by the company, all of the necessary permits and licences are in place to begin the work, but the start date has not been confirmed yet because the design phase is still being completed. In any case, the design “will be inspired by the philosophy and values of La Zagaleta”, an urbanisation that is accessible only to those individuals who have assets worth ten times the value of the property that they acquire.

The CEO of the firm in Spain, Jacobo Cestino, said that “this operation strengthens our leadership position in the luxury property market and links us to one of the most prestigious golfing brands in the world”. Similarly, he said that the company has not ruled out acquiring other brands in the medium term.

La Zagaleta, founded by Enrique Pérez Flores and currently chaired by Oswald Grubel, the former CEO of UBS and Credit Suisse, has 235 mansions with a market value of €1,800 million, which increases to €3,000 million if we include the two golf course and other facilities at the 900 hectare site.

Original story: Expansión (by Rocío Ruiz/Lidia Velasco)

Translation: Carmel Drake

Santander & Costain End Their RE Partnership In Sotogrande

2 July 2015 – Expansión

The Spanish bank and the British company are sharing out Alcaidesa’s assets – the development is worth around €90 million.

According to the agreement reached between the two partners, Santander will retain the majority of the land owned by Alcaidesa Holding for residential development, whilst Costain will keep two small plots of land and the operational management of golf courses and the marina, which are already in operation.

To complete the transaction, Costain will pay Santander €37.3 million for its 50% stake in Alcaidesa and will take on €8.5 million of the debt that the property developer owes to the bank. The bank, through its subsidiary Altamira, will hold onto the majority of the property developer’s land, worth €45.8 million.

Santander inherited its stake in Alcaidesa from Banesto, which in turn formed an alliance with Costain in the 1990s, to undertake this residential and leisure project in the Cadiz town of La Línea, near Sotogrande. The crisis that began in 2008 caused a slow down in the construction of more homes in Alcaidesa, which left several unbuilt plots of land that will now pass into Santander’s hands.

The parties expect to complete the transaction in September, once all of the administrative and tax formalities have been completed.

At the end of 2014, the funds Cerberus and Orion Capital paid NH Hotels Group €225 million for the assets (for development), golf course and hotels in Sotogrande.

Original story: Expansión (by Roberto Casado)

Translation: Carmel Drake

German Fund Patrizia To Invest €1,000M In Spain

8 April 2015 – Expansión

Real estate / The fund Patrizia Immobilien has arrived in Spain and wants to purchase a real estate company.

The Spanish recovery has become a magnet for large international investors. The latest player to be seduced by the market is the German real estate fund Patrizia Immobilien, one of the largest property managers on the European stage. The fund is listed on the stock exchange, is worth more than €1,100 million and manages (assets amounting to) almost €15,000 million at the global level, on behalf of large institutional investors.

To guide its entry (into the Spanish market), Patrizia has hired KPMG’s Head of M&A Real Estate, Borja Goday (pictured above). The executive was previously CEO at Sotogrande, partner in Spain of the fund O’Connor Capital Partners and an analyst at JPMorgan.

The German fund intends to expand its workforce by hiring up to seven professionals over the next few weeks, in order to establish an initial team to make the first acquisitions in Spain. But this could be just the tip of the iceberg, since Patrizia Immobilien may invest more than €1,000 million in Spain over the next few years, provided it finds the right opportunities. The company prefers not to share exact figures, but recognises that a large portion of the €2,500 million it plans to invest (globally) in 2015 may flow into the Spanish market.

“We are not a fund that just buys assets; we differentiate ourselves from other investors because we are expert managers. Furthermore, we are not planning to be in Spain for 4 or 5 years only, but rather for several decades”, says Goday. Whilst at KPMG, the executive was a member of the financial-real estate team that leads the sector rankings, and which participated in transactions such as the sale of Bankia Habitat to Cerberus, the sale of Sotogrande and the first major transfer (of assets) from Sareb.

In search of a stake in a real estate company

Patrizia’s (initial) aim is to close a transaction in the short term, and the fund is particularly interested in taking a controlling stake in a real estate company. Given the volume of investments that it manages, the fund could have even presented itself as a candidate in the bidding for Realia.

With a transaction of that kind, Patrizia would immediately assume the management capacity necessary to become a national player, in line with its objectives, and also take on a portfolio of assets with which it would begin to compete with its competitors. Before a purchase of that kind materialises, the investor will manage the assets that it purchases in Spain in collaboration with its team in Germany, where it has 800 employees.

As well as a possible takeover, the German fund is also evaluating the purchase of asset portfolios, primarily focused on residential and office buildings. The investor also has sub-funds that specialise in the purchase of individual assets, which may target buildings on Paseo de la Castellana in Madrid or on Paseo de Gracia in Barcelona.

The entry of Patrizia represents that arrival of a new type of investor in Spain. Following the arrival of opportunistic funds, such as Lone Star, Fortress, Cerberus and Apollo, (in recent years), which have purchased real estate companies with the aim of listing them on the stock exchange over the next few years, now, more conservative funds are arriving, which seem to be interested in settling here for the long term.

Original story: Expansión (by J. Zuloaga)

Translation: Carmel Drake

Cerberus Purchases Gescobro From Spanish Fund Miura

18 February 2015 – Expansión

Transaction / The US firm acquires the company that specialises in debt recovery, which has been controlled by the private equity firm Miura for five years.

Following its acquisition of Sotogrande, the US fund Cerberus is continuing to dominant transactions in Spain. Its latest target has been Gescobro, the debt recovery company, owned by the private equity firm Miura since 2010, which held more than 90% of its share capital, according to market sources.

The management team, which held a minority stake in the company, continue at the helm. Through this transaction (for which the consideration paid has not been disclosed), Cerberus strengthens its debt management capability, in particular after investing in bank debt in the Spanish market in recent months.

The US fund already owned Haya Real Estate (formerly Bankia Habitat), which, in addition to its real estate management services, also operates in the field of mortgages.

With the acquisition of Gescobro, Cerberus enhances its position in the debt recovery market, specifically in the consumer credit segment. Last year, Gescobro managed files with a value of €4,000 million. Miura first acquired shares in the company in 2010; until then it was owned by the founding family, the García-Godalls.

Gescobro employs nearly 300 professionals between its headquarters in Barcelona and its offices in Madrid. Heading up the company is Iheb Nafaa, the CEO, who is supported by Gemma García Godall, Head of Business Development and the daughter of the firm’s founders. The two executives were also shareholders of the group when Miura controlled the company and, according to market sources, both continue to hold a minority share.

The transaction, which was closed on Monday, is the second divestment made by the Spanish fund since it was established in 2008. The advisors to the transaction included PwC, on the side of Miura, and the law firm Ashurst, who worked with Cerberus.

Original story: Expansión (by Sergio Saiz)

Translation: Carmel Drake

 

Cerberus, Orion Improve Their Bid For Sotogrande

12/12/2014 – Cinco Dias

Investment funds Cerberus and Orion, through their joint venture Sotogrande Luxco, have increased their bid for Sotogrande. In a relevant event notice sent to the Stock Market Regulator, the partners announced that instead of original price of 4.43 euros a share, they are going to pay 4.47 euros to buy out the company held 96.997% by NH Hotel Group.

Cerberus and Orion bettered their offer after Ernst & Young povided valuation of Sotogrande’s 50% stake in Capredo Investments. Moreover, the proposal will be considered as a sale, and not as a share swap, and therefore the payment will be realized in cash.

Last October 17th, NH conveyed its 43.5 million shares to the funds.

 

Original story: Cinco Días

Translation: AURA REE

Cerberus Names New CEO For Sotogrande

17/11/2014 – Expansion

Sotogrande called for an extraordinary shareholders’ meeting, to take place on December 18th, with view to endorsing a new stage of the company, until now belonging to the NH Hotel Group and acquired by Cerberus and Orion for €225 million in October.

As per the meeting programme, new composition of the managing board will be approved through voting. For instance, assignations of Marc Topiol as the Chief Executive Officer, and Jose Maria Aznar Botella (the son of Spain’s ex-Prime Minister) and Isidoro Minguez as domanial directors respectively representing Cerberus and Orion.

In turn, the administrative board said good-bye to Federico Gonzalez Tejera (NH’s CEO) and to Jose Maria Lopez-Elola from Grupo Inversor Hesperia. Uria Menendez and Jefferies have advised NH on the process.

The operation excluded the Sotogrande assets located outside of Spain (i.e. in Italy, the Dominican Republic and Mexico) and NH will continue to manage two hotels of the chain.

 

Original article: Expansión (by Y. Blanco)

Translation: AURA REE

NH Sells Sotogrande to Cerberus & Orion For €225 Mn Total

20/10/2014 – Cinco Dias

The NH hotel group has come to an agreement with funds managed by private equity firms Cerberus and Orion on sale of a 96.997% stake in Sotogrande, an urban complex located in Cadiz, for €225 million in total.

According to a note provided by NH to the Spanish Stock Market Commission, the deal excludes assets owned by Sotogrande in Mexico, the Dominican Republic and Italy.

However, it does include land destined for real estate development, two golf courses, sports and tourist facilities, as well as two four-star hotels which will remain under management of NH for the next two years.

The buyers shall now submit a takeover bid for the remaining 3.003% share of Sotogrande.

The transaction will mean a €178 million net income for NH. The hotel chain will intend the proceeds for investment in stakeholding attractiveness, for example in amortizing a part of its debt, reaching an amount of €724,8 million at the end of first half of the year. Aside, the company is going to invest €250 million in refurbishement of more than 100 establishments and tighten business relationship with Chinese group HNA.

For a while, NH has undertaken a strategy of non-core asset divestment. Since 2009, the hotel chain sold 14 establishments in Europe and Mexico for the total of €683 million. By the end of 2018, the group foresees earning €200 million (ebitda) and further expansion.

Although the operation was at the brink of being closed in July, the hotel group was until now waiting for permits necessary for the Marina (port) situated inside the complex.

 

Original article: Cinco Días

Translation: AURA REE