BBS Capital, the debt advisor and asset manager, has arranged a €50 mln financing facility for the acquisition and development of 12,000 m2 Orquidea Aparthotel in Santa Eulalia on the island of Ibiza.
BBS secured the loan on behalf of a private hotel group from Signal Capital Partners, a London-based private asset management firm focused on investments in the European credit and real estate markets.
The loan was utilised to purchase a 198-room hotel from a private vendor, with the remainder of the facility being used to fund the transformation of this 7-storey building into a luxury-branded resort and beach club, set to open in summer 2019.
Redevelopment of the hotel is expected to begin immediately. It is situated in a prime location on Santa Eulalia's palm tree lined promenade. Santa Eulalia is on Ibiza's east coast, 21km from Ibiza Airport and has a long established reputation as the island’s cultural and gastronomic capital. The town also has Ibiza's largest marina with moorings for over 700 boats.
Joanne Barnett, of BBS Capital commented: 'We are delighted to have helped our client secure such a prime development opportunity in Santa Eulalia. It was a complex transaction for an asset located on an island that is fast becoming a luxurious international entertainment destination.'
'It was important to our client that the deal was completed quickly so redevelopment work could begin immediately and outside of the tourist season. Signal Capital Partners were able to quickly overcome the deal’s challenges, ensuring it progressed swiftly and the completion date was met,' Barnett added.
BBS Capital has helped its clients finance over £1 bn (€1.1 bn) of property deals across multiple sectors in the past 12 months. One of its notable deals was arranging the acquisition finance for WeWork's Fox Court building in Grays Inn Road, London that was acquired in March 2017 by a private client for in excess of £100 mln.
The London Mayfair-based firm operates in the UK and Western Europe with an experienced and specialist team.
