Global private investment firm Castlelake has acquired a 49% stake in Millenium Hotels Real Estate (MHRE), a listed real estate investment company specialising in luxury hotel properties in Spain and Portugal.
Through the transaction, Castlelake will become the primary shareholder of the company and have three seats on its board of directors.
The investment builds on Castlelake's history of investing in Europe, where it has acquired more than 7,000 assets across 12 European countries since its founding in 2005. In Spain, where the firm purchased large amounts of fully-permitted land following the global financial crisis, it now owns Aedas Homes, one of the country’s largest housebuilders with nearly 2,000 units delivered in the first half of 2021.
‘Through our investment in the Millenium platform, we aim to enable Castlelake's investors to obtain exposure to high quality assets in prime Spanish locations while opportunistically participating in the tourism sector's recovery from the Covid-19 pandemic,’ said Evan Carruthers, managing partner and CIO of Castlelake.
‘With substantial experience in the Spanish market and Europe more broadly, we believe Castlelake is uniquely positioned to support Millenium's business plan and help it achieve its strategic goals.’
The Millenium portfolio currently comprises 10 hospitality assets across the main tourism destinations of Madrid, Alicante, Sevilla, Bilbao, Córdoba, Alcaidesa and San Sabastian, which Millenium has stated to be valued at approximately €500 mln, once fully redeveloped.
