Ivanhoé Cambridge has backed a €150m fundraise by Spanish real estate investment trust Árima Real Estate.
In a joint statement, the companies said Ivanhoé Cambridge has invested €60m for a 20.3% stake in Árima to become the main shareholder in the listed company.
Ivanhoé Cambridge will appoint Stanislas Henry, head of strategic partnerships, Europe at Ivanhoé Cambridge, as member of the board of directors of Árima as well as the audit and control committee and remuneration and appointments committee. Ivanhoé Cambridge will also participate in the investment committee of the company.
The equity investment has been completed following a €150m capital increase which was approved by Árima shareholders on 5 November 2019.
The capital will enable Árima to continue its value-add real estate investment strategy.
Karim Habra, head of Europe and Asia-Pacific for Ivanhoé Cambridge, said: “The [Árima] management team has a strong track record of performance, and has built, in a very short time, an impressive portfolio of high-quality value-add properties and a promising development pipeline.
“Madrid office market is anticipating a sustained rental growth and we believe Árima is the right investment vehicle to take advantage of that cycle.”
Luis Alfonso López de Herrera-Oria, CEO of Árima Real Estate SOCIMI said: “The commitment of all shareholders, and especially Ivanhoé Cambridge, demonstrates the confidence in the work carried out by Arima’s management, their trust and commitment in our current investments and strategy.
“We will move forward on our business plan in order to generate value for all of them.”