Benson Elliot Capital Management, the European private equity real estate firm, has acquired a 70 percent stake in Barcelona-based property company Promobuilding through a re-capitalization and subscription of new shares.
The capital injection comes a year after Benson Elliot teamed up with Promobuilding to purchase a prime land parcel near the sea in Mont Roig del Camp. The partners also created a joint venture to acquire a prominent residential site in Sant Fruitos de Bages six months later.
The investment in Promobuilding will provide the company with up to €500 million ($789 million) of additional firepower to focus on the acquisition and development of distressed residential investment opportunities across Spain over the next two years, according to the firm.
The projects will either be undertaken alone or with other joint venture partners.
Promobuilding's senior management team will be retaining around a 30 percent stake in the business.
Founded in 2000, Promobuilding is one of the leading residential development companies in Catalonia, employing approximately 40 people. It has completed eight primary residence developments and four renovation schemes in and around Barcelona.
Marc Mogull, Benson Elliott founder and managing partner, said the acqusition provided the firm with a platform to take advantage of Spain's distressed housing market. “We have the same outlook on the Spanish market and determination to create a leading platform that can make the most of the many distressed opportunities we are seeing in the Spanish housing market today.”