Investment boom in hotels and luxury apartments in Spain
The investors will put over 2 billion euros in Spanish luxury real estate and hotels as they see the country as the most favorable place for investments
The Belgian developer Immobel, the Andorran fund Emin, the management company Terralpa and KKH Capital, among others, are launching the promotion and development of high-end property in Spain.
Investors are bidding for hotel assets and luxury homes and Spain is strengthening its position as one of the favourable countries for international investments due to the increase in demand and prices which, if compared to other places in the region, are still low. There are currently projects underway, or in the delivery phase, with an investment volume of close to 2,000 million euros.
Investors are bidding for hotel assets and luxury homes and Spain is strengthening its position as one of the favourable countries for international investments due to the increase in demand and prices which, if compared to other places in the region, are still low. There are currently projects underway, or in the delivery phase, with an investment volume of close to 2,000 million euros.
The new Four Seasons Marbella Resort project
One of the largest projects in Spain, now in the launch phase, will be the Four Seasons Marbella Resort (close to the old town of Marbella ), which will become the gateway to the country for the Belgian real estate developer Immobel and the US group Fort Partners.
These companies will invest 740 million euros in the development of this exclusive resort which will offer a 120-room hotel operated by the Canadian chain and a residential development with 55 villas, 75 flats and 32 townhouses and private residences.
Also under the banner of the Canadian hotel giant, the future Four Seasons de Formentor will be inaugurated in the summer of 2023. Behind this project is the Andorran fund Emin Capital which, on behalf of various investors, including the Mexican family office Rodina - the investment vehicle of the Mexican family Chico Hernández - bought the asset from Barceló a year ago for 165 million euros.
The fund's plan is to refurbish the hotel to bring it up to Four Seasons standards with an additional investment of around 70 million euros. "The entire process requires extensive refurbishment work to respect and protect the natural environment. It is estimated to take approximately two years, so it is expected to open in the summer of 2023," said Emin Capital.
These two complexes operated by Four Seasons are an addition to the one that opened last year in the Plaza de Canalejas, in the heart of Madrid. The Canalejas Centre brought the branded residence concept to Spain – luxury residences with services provided by top-level tour operators – a formula that is deeply rooted in other countries but is still taking off in Spain.
Focused on the luxury housing market, one of the most active investors in Madrid in recent years has been Terralpa, a management company that invests capital from Mexican and Spanish family offices and institutional investors.
After allocating more than 250 million with its first fund to exclusive residential projects in the capital, the management company now wants to broaden the focus and is finalising the launch of its second vehicle with which it plans to invest 600 million in the purchase and refurbishment of luxury projects in Madrid and other Spanish cities.
The luxury development that has generated most expectation in Spain has been the one launched by KKH Property Investors, an alliance between KKH Capital – founded by the former CEO of Renta Corporación Josep Maria Farré – and the US fund Perella Weinberg Real Estate II, with the Mandarin Oriental homes in Barcelona.
The company bought the former Deutsche Bank headquarters, located at the intersection of Paseo de Gracia and Diagonal, five years ago from the Andorran families Reig, Ribas and Cerqueda and has been working on its transformation for the past three years.
After abandoning the initial idea of converting the asset into a luxury hotel, the developers embarked on a complete refurbishment of the property to house luxury apartments, which are now on the market with average selling prices of 30,000 euros per square metre. These residences will have the exclusive seal of the Mandarin Oriental group.
Luis Valdés, head of Residential Sales Advisory at Colliers, mentions that more and more residences in Spain are choosing luxury hotel chains. "We foresee more projects of this type, boosted by rising demand and the ability to anticipate cash flow to investors," he says.
Luxury residences in Spain made a comeback in 2010 with the Millenium-led project in Madrid's Plaza de la Independencia. Since then, other exclusive developments have been launched in the capital, such as Lagasca 99, led by Pimco and Grupo Lar, names the expert.
Spain has also established itself as one of the favourable destinations for Latin Americans, as they find a familiar environment, language or culture in Spain, he adds.
For Carlos Zamora, partner at Knight Frank and head of residence, Spain is a pole of attraction for real estate investors, an effect that has been reinforced after Covid. In addition, luxury and well-located assets have become safe haven investments. According to Zamora, one of the attractions of Spain and, specifically, of Madrid compared to other European cities is its profitability, with average prices of around 8,000 or 9,000 euros per square metre in the luxury segment, much more affordable than in London or Paris, with an average cost in the same segment of 20,000-30,000 euros per square metre. Both experts warn, however, of the counterproductive effect of the future housing law, which generates uncertainty in the sector, and they say that if the law comes into force as planned, it could affect this type of project and scare off prospective investors.
Source: https://www.expansion.com/inmobiliario/2021/11/18/61957964468aeb53268b4650.html
Property for sale in Marbella, Costa del Sol
Luxury property for sale in Spain
These companies will invest 740 million euros in the development of this exclusive resort which will offer a 120-room hotel operated by the Canadian chain and a residential development with 55 villas, 75 flats and 32 townhouses and private residences.
Also under the banner of the Canadian hotel giant, the future Four Seasons de Formentor will be inaugurated in the summer of 2023. Behind this project is the Andorran fund Emin Capital which, on behalf of various investors, including the Mexican family office Rodina - the investment vehicle of the Mexican family Chico Hernández - bought the asset from Barceló a year ago for 165 million euros.
The fund's plan is to refurbish the hotel to bring it up to Four Seasons standards with an additional investment of around 70 million euros. "The entire process requires extensive refurbishment work to respect and protect the natural environment. It is estimated to take approximately two years, so it is expected to open in the summer of 2023," said Emin Capital.
These two complexes operated by Four Seasons are an addition to the one that opened last year in the Plaza de Canalejas, in the heart of Madrid. The Canalejas Centre brought the branded residence concept to Spain – luxury residences with services provided by top-level tour operators – a formula that is deeply rooted in other countries but is still taking off in Spain.
Focused on the luxury housing market, one of the most active investors in Madrid in recent years has been Terralpa, a management company that invests capital from Mexican and Spanish family offices and institutional investors.
After allocating more than 250 million with its first fund to exclusive residential projects in the capital, the management company now wants to broaden the focus and is finalising the launch of its second vehicle with which it plans to invest 600 million in the purchase and refurbishment of luxury projects in Madrid and other Spanish cities.
The luxury development that has generated most expectation in Spain has been the one launched by KKH Property Investors, an alliance between KKH Capital – founded by the former CEO of Renta Corporación Josep Maria Farré – and the US fund Perella Weinberg Real Estate II, with the Mandarin Oriental homes in Barcelona.
The company bought the former Deutsche Bank headquarters, located at the intersection of Paseo de Gracia and Diagonal, five years ago from the Andorran families Reig, Ribas and Cerqueda and has been working on its transformation for the past three years.
After abandoning the initial idea of converting the asset into a luxury hotel, the developers embarked on a complete refurbishment of the property to house luxury apartments, which are now on the market with average selling prices of 30,000 euros per square metre. These residences will have the exclusive seal of the Mandarin Oriental group.
Luis Valdés, head of Residential Sales Advisory at Colliers, mentions that more and more residences in Spain are choosing luxury hotel chains. "We foresee more projects of this type, boosted by rising demand and the ability to anticipate cash flow to investors," he says.
Luxury residences in Spain made a comeback in 2010 with the Millenium-led project in Madrid's Plaza de la Independencia. Since then, other exclusive developments have been launched in the capital, such as Lagasca 99, led by Pimco and Grupo Lar, names the expert.
Spain has also established itself as one of the favourable destinations for Latin Americans, as they find a familiar environment, language or culture in Spain, he adds.
For Carlos Zamora, partner at Knight Frank and head of residence, Spain is a pole of attraction for real estate investors, an effect that has been reinforced after Covid. In addition, luxury and well-located assets have become safe haven investments. According to Zamora, one of the attractions of Spain and, specifically, of Madrid compared to other European cities is its profitability, with average prices of around 8,000 or 9,000 euros per square metre in the luxury segment, much more affordable than in London or Paris, with an average cost in the same segment of 20,000-30,000 euros per square metre. Both experts warn, however, of the counterproductive effect of the future housing law, which generates uncertainty in the sector, and they say that if the law comes into force as planned, it could affect this type of project and scare off prospective investors.
Source: https://www.expansion.com/inmobiliario/2021/11/18/61957964468aeb53268b4650.html
Property for sale in Marbella, Costa del Sol
Luxury property for sale in Spain
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