Drago Capital, the Spanish private equity real estate firm, has teamed up with an unnamed North American institutional investor to buy a 50 percent stake in three buildings in Spain from Royal Bank of Scotland.
Drago already owned a 50 percent stake in the trio of buildings having bought the assets for around €315 million in July 2008 from Grupo Prisa, owner of newspapers like El País and Cinco Dias in Spain.
The Madrid-based firm said that it has now acquired the other 50 percent stake from the semi-nationalised British bank, for an undisclosed sum.
The portfolio comprises two assets in Madrid – 32 Gran Vía and 40 Miguel Yuste- and a third one in Barcelona, 6-10 Caspe. It has been bought by Drago on behalf of Drago Real Estate Partners (DREP), its opportunity real estate fund. This latest deal adds to the €2.7 billion of assets it already manages in Spain having entered into among other transactions, a large sale and leaseback of of Banco Santander bank branches and a sale leaseback of Bankia outlets.
In November last year the firm announced the purchase of 97 bank branches from Spain’s fourth largest bank, Caja Madrid. For that deal it teamed up with New York-based private equity firm Cerberus Capital Management.