Asset manager Cheyne Capital has provided a €73m loan to HIG Capital to fund the acquisition of three buildings in Spain’s capital city.

Cheyne Capital said the senior loan will be used by HIG to fund the acquisition of two offices and one hotel building in central Madrid which will undergo a renovation to be transformed into a residential scheme.

The 20,000sqm portfolio in Arturo Soria is expected to be converted into a residential scheme of around 267 units.

Daniel Schuldes and Javier Quintela of Cheyne Capital’s real estate arm said: “We are delighted to support the conversion of outdated and obsolete buildings into more energy-efficient, residential dwellings.

“The properties are extremely well-located and have excellent amenities, so we are excited to partner with HIG Capital to deliver this much-needed, high-quality housing which helps provide a solution to Madrid’s structural supply-demand imbalance.”

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