Orion Capital Managers has taken full ownership of Sotogrande Luxco, the major shareholder of a luxury resort developer in Spain.

Orion has bought the remaining 50% stake in Sotogrande Luxco from its joint venture partner Cerberus Capital Management.

Sotograde Luxco owns 99% of Sotogrande SA, a real estate company listed on the Madrid Stock Exchange.

Orion, which made the investment on behalf of its European Real Estate Fund IV, said Sotogrande Luxco is expected to launch a bid for all remaining shares and take the company private.

Sotogrande SA is developing and managing the 20sqkm Sotogrande estate in Andalucia, including the development of La Reserva Club.

European real estate firm Orion said the deal reaffirmed its strategic plan of developing La Reserva Club into Sotogrande’s “latest high-end community”.

The deal, they said, marked the beginning of the second phase of Sotogrande SA’s redevelopment and repositioning plan.

Aref Lahham, founder and managing director of Orion, said the partnership with Cerberus “allowed us to acquire such a unique asset” and “provided us the proper platform to develop Sotogrande into a premiere residential and leisure destination within Europe once again”.

Meanwhile, Lee Millstein, global head of real estate for Cerberus, described the deal as an important milestone in the development of the Spanish residential development.

“Together with Orion, we have increased the attractiveness of Sotogrande as a luxury destination, helped evolve its brand in the market and improved the long-term value of the business,” he said.