RoundShield Partners, a private investment firm focused on European asset-backed special situations and distressed opportunities, has booked a successful profit after exiting its position with a family-owned borrower, Sierra Blanca Estates, which has developed fashion-branded luxury residential assets in Spain.
RoundShield first stepped in by providing a €70 mln senior secured loan to Sierra Blanca Estates in 2019, which saved Epic Marbella in the Costa del Sol - the first fashion-branded residential development in Spain with 56 apartments and 5 villas designed in the Costa del Sol in collaboration with international fashion brand Fendi Casa and designer Karl Lagerfeld.
RoundShield also financed the exercise of a call option over a site with planning permission to develop a landmark beachfront high-rise apartment complex called Malaga Towers, plus development funding for the projects in conjunction with one of Spain’s leading banks on the back of off-plan sales to both domestic and international buyers.
The rescue finance allowed Sierra Blanca Estates to retain ownership of two sites by refinancing a defaulted loan undergoing foreclosure proceedings.
In a statement, RoundShield said the project saw 'considerable GDV uplift', cementing the resilience of the luxury branded residential segment across cycles and allowing RoundShield to successfully exit the debt facility generating significant returns of a 21% IRR and 2.2x multiple.
'The position is now fully exited by RoundShield, with Sierra Blanca Estates in a strong and well capitalised position having fully repaid the facility through successful commercialisation and execution of these projects.'
Ignacio Lliso, MDat RoundShield, led the deal and the team. He said: 'RoundShield is proud to have supported Sierra Blanca Estates in becoming the leading luxury developer and pioneer in branded residences in the Costa del Sol. Our investment strategy seeks opportunities and assets with strong underlying fundamental value in need of private capital solutions and we are pleased to have shared in the success of Sierra Blanca Estates.'
