Spanish REIT Hispania said on Monday that it has concluded the second phase of a joint venture agreement signed earlier this year with operator Grupo Barceló under which five hotels have been transferred to the Bay hotel arm.

Spanish REIT Hispania said on Monday that it has concluded the second phase of a joint venture agreement signed earlier this year with operator Grupo Barceló under which five hotels have been transferred to the Bay hotel arm.

The transaction involves the four-star Barceló Fuerteventura, Barceló Castillo, Barceló Margarita and Barceló Lanzarote hotels, situated on the Canary Islands as well as the Barceló Pueblo Park in Mallorca.

Following the deal, Bay owns 16 resort hotels with a total of 6,097 rooms spread throughout the main tourist areas of the Canary Islands, Balearic Islands and Andalusia, as well as two shopping centres. The portfolio is valued at €421 mln and is estimated to generate rental income of €45 mln a year.

Barceló will remain the operator of the hotels through lease contracts with an initial term of 15 years.

Hispania first announced in April that it had finalised an agreement with hotel and resort operator Grupo Barceló to create the country's first hotel REIT focused on the holiday resort segment.

Under the agreement, Hispania is investing a total of €350 mln in the company in exchange for a 76% stake, reflecting a total portfolio value of €459 mln. Grupo Barceló will maintain a 24% interest.

Hispania went public in May 2014 and has since built up a portfolio consisting of 128,000 m2 of offices, 684 residential units and 9,031 hotel rooms.