ENGEL & VÖLKERS CAPITAL AG LAUNCHES INSTITUTIONAL FUND FOCUSING ON THE SPANISH REAL ESTATE PROJECT DEVELOPMENT MARKET
- Luxembourg special fund vehicle EVC REDF with a target fund volume of € 300 million
- Financing for two real estate projects in Spain successfully completed
- Logistics park in Madrid with a total area of almost 42,000 square meters
- Student residence in Barcelona with a rentable area of approx. 4,550 square meters
After successfully financing a total project volume of over 1 billion euros in Germany, Engel & Völkers Capital AG (EVC) has successfully completed the first tailor-made financing solutions for two real estate project developments on the Spanish market. The financing for a logistics park in Madrid with almost 42,000 square meters of total space and a Micro Living property with 257 student apartments in Barcelona, which operates under CORESTATEs Label Youniq, was completed within a few weeks.
The Spanish real estate market has made a substantial recovery since the crisis in 2008 and is now showing stable annual growth of 2.4 percent. EVC has its own team in Madrid and excellent market access via the Engels & Völkers group network with more than 70 Spanish and international subsidiaries. Thanks to established auditing processes and the company’s high solution orientation, project developers have access to the required financing line within an average of four to six weeks. In contrast to Spanish banks, which only finance after the building permit has been obtained, EVC can provide capital in earlier planning phases.
Logistics park in central location of Madrid
Triggered by the e-commerce boom, demand for logistics properties in the Spanish metropolitan regions has risen sharply. EVC has succeeded in financing a property with a very good inner-city connection – only 20 minutes from the centre of Madrid, with direct underground connection and motorway connection – for a logistics project tailored to the requirements of the “last mile”. The “Last Mile Greenfield Project” logistics park in Madrid has a total area of 41,734 square meters and is in the Villaverde/San Andrés district west of Avenida de Andalucía and in the immediate vicinity of the San Cristóbal metro station. The nearby A-4 motorway is one of the most important industrial and logistics corridors in the south of the Spanish capital.
Student residence in trendy neighbourhood
In the university city of Barcelona, ultra-modern student apartments with excellent transport connections are being built near the city beach “Playa de Levante” in Calle Pallars 489 in the dynamic innovation district “22@”. The “22@” quarter is one of Barcelona’s most recent urban developments. Created in 2000 on a former industrial site in the El Poblenou district, “22@” has developed into a technology and innovation hub. More than 4,500 companies are located here. The property will offer 257 apartments (265 beds) on a total net rental area of approx. 4,550 square metres. These include 57 car parking spaces, which are also available to external users, generous common areas, several communal kitchens and two roof terraces, one of which has a swimming pool, and a fitness studio.
Fund and financing structure
The tailor-made financing solutions are structured via Germany and/or Luxembourg. The Luxembourg EVC-REDF Umbrella Fund S.A. SICAV-SIF with an expected first closing of 50 – 60 million euros is focused on the European market, in particular Spain. It invests in a diversified asset portfolio in the residential, logistics, office and alternative real estate sectors. The main target markets are large cities in Spain – Madrid, Barcelona, Malaga, Valencia, Seville as well as the Costa del Sol and the Balearic Islands. The loan volume per project is ideally between 5 and 20 million euros.
Tomasz Kalemba, Head of Portfolio and Investment Management EVC AG: “We are entering the Spanish development market with tailor-made financing solutions structured through Luxembourg and/or Germany. EVC focuses on stable and profit-oriented portfolio diversification in terms of asset classes, locations and solid project developers. Our goal is to finance real estate projects in Spain with a project volume of more than 300 million euros in the next two to three years.”
The fund offers both senior secured loans (Sub-fund 1) and pure mezzanine financing (Sub-fund 2). A combination of both financings is possible in order to guarantee the entire loan structure. “With our fund solution, we offer investors an attractive opportunity to benefit from the inefficiencies of the Spanish financing market in the project development sector. The investor determines the weighting and allocation of the sub-funds themselves, “says Stephan Langkawel, Director of Sales at EVC AG.
About Engel & Völkers Capital AG
Engel & Völkers Capital AG is an independent investment and asset manager for real estate investments, founded in 2009 and headquartered in Hamburg. On request, Engel & Völkers Capital AG provides the complete financing structure for real estate projects. The central business area is the structuring and syndication of capital investments and the associated asset management for institutional and private investors. The focus is on holistic financing structuring including the procurement of classic debt and supplementary subordinated capital as well as the financing of construction projects and land purchase for property developers and project developers via special institutional funds. The platform www.ev-capital.de Crowdinvest addresses itself to retail and private investors. Engel & Völkers Capital AG is a licensed partner of the Engel & Völkers Group.
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