Corestate Capital in Spanish JV

The Zug-based firm has teamed up with a Spanish asset management firm and property developer to invest via club deals and separate accounts in Spain.

Corestate Capital, the Zug-based private equity real estate firm, has formed a joint venture with Madrid-based asset management firm Inmobiliaria Espacio and its sister company OHL Desarrollos, a property development company.

The JV will see Corestate and OHL co-invest their own equity alongside selected investors in Spanish properties via club deals and separate accounts. The platform has no official target size but a spokesman for Corestate said the JV plans on investing up to “several hundred million euro” in Spanish properties.

Corestate and OHL hope to take advantage of individual opportunities arising in Spain and are seeking to create an optimum balance between cash flow oriented, more defensive deals with a core and core-plus strategy and value creating, more opportunistic projects via value-add or opportunistic strategies.

The investment profile of the joint venture will concentrate on office, residential, retail and shopping centre developments along with other projects such as hotels, student housing and logistics in Spain.

“We have closely studied the Spanish real estate market and decided that now is the right time for us to enter that market,” commented Ralph Winter, founder of Corestate Capital.

The firm’s spokesperson said that the current opportunity in Spain is largely due to macroeconomic factors as the Spanish economy is on an upward trend for the first time since 2007. He cited the increase in industrial production while labour costs are falling as examples of Spain’s favourable macro conditions.