Benson Elliot, the leading European private equity real estate firm, has completed a milestone debt transaction in the Spanish market, securing a prime office investment in Barcelona for Benson Elliot Real Estate Partners III from Spain’s Banco Sabadell. The transaction was structured and negotiated directly with Banco Sabadell, and involves the forward purchase of Antic Cami de Valencia (Antic Cami), a 3-building, 20,000 sqm office complex in central Barcelona with an end value of c. €80 million.
Banco Sabadell’s real estate subsidiary, Solvia, took control of Antic Cami after the previous owners defaulted on a loan from the bank in 2009. In 2010, Benson Elliot and local partner Urban Input began working with Banco Sabadell and Solvia to restructure the bank’s position and move the project forward. Under the terms agreed with Banco Sabadell, the Benson Elliot-led joint venture will acquire the completed buildings from Solvia in early 2013, with financing for the purchase provided by the bank.
Marc Mogull, Managing Partner at Benson Elliot, commented: “This is a win-win transaction for Benson Elliot and Banco Sabadell, and indeed for the city of Barcelona. We’ve worked well with the Sabadell and Solvia teams to allocate risk and structure solutions, and I’ve no doubt this will become a model for future investments in the Spanish market. Catalonia has been resilient throughout the recent crisis, led by Barcelona’s position as a key European business hub. When markets stabilise Barcelona will face a shortage of truly prime office space – a shortage that Antic Cami de Valencia can at least start to fill.”
Salvador Grane, Chief Executive Officer at Solvia and Assistant General Manager at Banco Sabadell commented: “This is a landmark transaction for us and Benson Elliot has been an indispensable part of this process. The innovative structure of the deal is a great outcome for the bank, as well as for our partners. This is an exciting time for the Barcelona market and this transaction shows that attractive opportunities and successful partnerships will arise from the market’s recent volatility. As one of Spain’s largest banking groups, Banco Sabadell is a leading expert in the country’s real estate sector. Our goal is to maximise returns on our real estate assets and we look forward to exploring other projects with Benson Elliot in the future.”
Antic Cami is located in 22@, central Barcelona’s modern business district, close to the crossing of the area’s two principal thoroughfares (Avenida Diagonal and Avenida Pere IV), and with immediate access to local metro and tram stops. Antic Cami is expected to be the only major new building to be delivered in Barcelona by 2012/2013. It will be the first energy efficient, LEED-certified office building in the market, as well as one of the city’s most design-efficient buildings.
Howard Pierce, Director at Urban Input, commented: “We are pleased to partner with Benson Elliot on this innovative and important project. We are providing space designed around occupiers’ needs first, from large floor plates through to smaller modules. Antic Cami aims to provide a top-quality environment while bringing internationally recognised green building practices to Barcelona.”
For further information:
Marc Mogull, Partner
Sophia Matveeva, Communications
+44 (0) 20 7808 8900
Dido Laurimore / Will Henderson
+44 (0) 20 7831 3113
Howard Pierce, Director
+34 93 342 7670
NOTES TO EDITORS
Benson Elliot Capital Management LLP (Benson Elliot) is a leading independent private equity real estate, FSA regulated fund manager with c. €850 million of equity under management. The firm has a pan-European investment platform and has transacted in the UK, France, Germany, Spain, Hungary, Slovakia, and Denmark. Benson Elliot holds a diversified real estate portfolio, currently comprised of office, retail, hotel and residential assets. Its holdings, through affiliates, include the Opéra Italiens in Paris, the 5-star Nikko Hotel in Dusseldorf and the newly built Novotel Edinburgh Park. The Benson Elliot team has experience in delivering superior risk-adjusted returns through active and innovative investment management and has successfully invested through market cycles. Benson Elliot is led by Marc Mogull and Trish Barrigan, who direct a team of senior industry professionals with experience in sourcing, underwriting and managing real estate investments throughout Europe and across all the major property sectors.
Benson Elliot was founded in 2005 to realise a vision for successful real estate investing in a changing market environment and has, from the start, worked with leading institutional investors. The firm launched its inaugural investment vehicle, Benson Elliot Real Estate Partners II, L.P., in April 2006, closing in August 2006 with commitments of more than €335 million. In 2009, Benson Elliot closed its second oversubscribed fund, Benson Elliot Real Estate Partners III, L.P., with commitments of over €500 million. Subsequently, Benson Elliot was awarded the 2009 European Fundraising of the Year prize by Private Equity Real Estate.
Benson Elliot Real Estate Partners II, L.P and Benson Elliot Real Estate Partners III, L.P. are not accepting new commitments from investors.
Urban Input, part of the Bream Real Estate Group, was set up in 2004 by three partners with extensive experience in the real estate sector in Spain and currently manages a number of projects for both national and international investors. Urban Input is a real estate asset management company which works in partnership with its clients through repositioning, improving contracts and income flows, development and refurbishment. Urban Input focuses on management intensive projects in all sectors, with special emphasis on office, industrial and residential properties. The company is based in Barcelona but provides national coverage and reaches all of Spain’s principal markets.
To date Urban Input has carried out over €520 million of transactions, and provided consultancy advice to corporate occupiers, public authorities and investors. This track record has resulted in a diverse range of investors taking the company on to help them manage their assets.
Banco de Sabadell SA is a Spain-based financial institution primarily engaged in the banking sector. The Bank is a parent of Grupo Banco Sabadell, a group which comprises a number of entities also active in the banking sector, such as Banco Sabadell Atlantico SA, Banco Herrero SA, Solbank SBD SA, Banco ActivoBank SA, Banco Urquijo SA and TansAtlantic Bank Inc; as well as other subsidiaries and affiliates which are involved in various areas of the financial sector, including insurance, asset management and international trading, among others. The Bank operates a network of foreign branches and representative offices established in North, Central and South America, the Caribbean, Europe, North Africa, the Middle East and Asia.