Benson Elliot partners with Bank Sabadell in Barcelona

Benson Elliot is teaming up with local lender Banco Sabadell to put a EUR 80 mln landmark project in Barcelona back on track. The European private equity real estate firm said it has signed an agreement to forward purchase Antic Cami de Valencia, a three-building, 20,000 m² office complex which is expected to be the city's only major office delivery in 2012/2013.

The deal - a milestone debt transaction in the Spanish market - was made for Benson Elliot Real Estate Partners III. The transaction was structured and negotiated directly with Banco Sabadell, which took control of Antic Cami after the previous owners defaulted on a loan from the bank in 2009.

In 2010, Benson Elliot and local partner Urban Input began working with Banco Sabadell and Solvia, Sabadell's real estate arm, to restructure the bank's position and move the project forward. Under the terms agreed with Banco Sabadell, the Benson Elliot-led joint venture will acquire the completed buildings from Solvia in early 2013, with financing for the purchase provided by the bank.

'This is a win-win transaction for Benson Elliot and Banco Sabadell, and indeed for the city of Barcelona,' said Marc Mogull, managing partner at Benson Elliot. 'We've worked well with the Sabadell and Solvia teams to allocate risk and structure solutions, and I’ve no doubt this will become a model for future investments in the Spanish market.'

Antic Cami is located in 22@, central Barcelona's modern business district, and will be the first energy efficient, LEED-certified office building in the market, as well as one of the city's most design-efficient buildings.