Private equity real estate firm Benson Elliot said on Monday that it has acquired a 70% stake in Barcelona-based property company Promobuilding to focus on the acquisition of distressed residential in Spain.
Private equity real estate firm Benson Elliot said on Monday that it has acquired a 70% stake in Barcelona-based property company Promobuilding to focus on the acquisition of distressed residential in Spain.
The investment, carried out through a re-capitalisation and subscription of new shares, will provide Promobuilding with up to EUR 500mln of additional firepower to focus on the acquisition and development of distressed residential 'investment opportunities' across Spain over the next two years.
London-based Benson Elliot was advised by Ashurst and Deloitte. Benson Elliot said the acquisitions will either be undertaken alone or with other select joint venture partners. Promobuilding's senior management team will retain ownership of the remaining 30% of the company.
Founded in 2000, Promobuilding has become a leading residential development company in Catalonia. The company's 40 staff cover the entire range of disciplines from acquisitions and sales, asset and project management, planning and technical services, finance and marketing. Promobuilding has to date completed eight primary residence developments and four renovation schemes in and around Barcelona.
Benson Elliot and Promobuilding first joined forces in mid-2007 by investing in a plot of land just 150 metres from the sea in Mont Roig del Camp. The partners also worked together to acquire a prominent residential site in Sant Fruitos de Bages (near Manresa) six months later. Both investments, made into an already distressed market, are progressing as planned, Benson Elliot said.
Marc Mogull, managing partner at Benson Elliot, commented: 'We have the same outlook on the Spanish market and determination to create a leading platform that can make the most of the many distressed opportunities we are seeing in the Spanish housing market today.'
Benson Elliot manages funds on behalf of pension funds, private foundations, endowment funds and high net worth individuals. With a total investment capacity is about EUR 2bn, the firm says it targets investments in the middle market (EUR 25-500mln) across Europe.
