Funds managed by global alternative investment manager Castlelake are investing in Spanish hospitality platform Millenium Hotels Real Estate (MHRE).

Castlelake said a number of its funds will buy up to 49.9% of the shares of MHRE, the owner of luxury hotel properties in Spain and Portugal.

As part of the deal, Castlelake will become the primary shareholder of the listed real estate investment firm and have three seats on its board of directors.

MHRE’s current portfolio comprises 10 hospitality assets across the main tourism destinations of Madrid, Alicante, Sevilla, Bilbao, Córdoba, Alcaidesa and San Sabastian, valued at €500m, once fully redeveloped.

Evan Carruthers, managing partner and CIO of Castlelake, said: “Through our investment in the Millenium platform, we aim to enable Castlelake’s investors to obtain exposure to high-quality assets in prime Spanish locations while opportunistically participating in the tourism sector’s recovery from the COVID-19 pandemic.

“With substantial experience in the Spanish market and Europe more broadly, we believe Castlelake is uniquely positioned to support Millenium’s business plan and help it achieve its strategic goals.”

Javier Illán, president of Millenium Hotels Real Estate, said: “Castlelake’s support provides Millenium with a strong foundation on which to build momentum and maximize the creation of value for shareholders.”

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