Madrid-based real estate manager Azora has acquired a beachfront resort in Spain for its European value-add hotel fund.
The manager has paid an undisclosed amount on behalf of the Azora European Hotel and Lodging (Azora EH&L) fund to buy the Arenas Resort Giverola in Costa Brava from Swiss hotel group Arenas.
Built in 1988 and spread over 35 hectares, Arenas Resort Giverola comprises a 213 apartment hotel complex, as well as a large campsite. Azora has appointed Med Playa to manage the resort.
Azora said it plans to invest €40m to carry out a refurbishment and expansion of the existing facilities across both the hotel and camping elements.
The deal represents the fund’s first acquisition since the manager assembled its seed portfolio ahead of a €680m first close in June last year. The fund’s seed includes 10 hotels, with 2,670 keys and 4 hostels with 1,200 beds, located across Spain, Portugal, Italy and Belgium.
The Azora EH&L fund, backed by Dutch pension fund manager APG, has a €750m hard cap target, which when achieved together with leverage, will give the fund more than €1.5bn of investment firepower.
Monica Garay, senior partner and head of alternative lodging at Azora, said: “Having completed the initial capital raise for our latest hotel fund last summer, we have patiently observed the sector against the backdrop of the pandemic while assessing a number of opportunities.
“This significant acquisition is our first for the fund since assembling its seed portfolio and presents us with an opportunity to fully reposition an extremely well-located resort in a popular destination area for domestic and international tourists.”
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