Iberia-focussed-Drago Capital has sealed a second sale and leaseback deal with Caja Madrid as investors continue to selectively invest in Spain.
Madrid-based Drago has teamed up with Valencia-based investment firm, Grupo Atitlan, in a 50,50 joint venture to buy eight bank branches from the savings bank which merged with other cajas earlier this year to create new group, Bankia. [SPLIT SENTENCE]
It is the second sale and leaseback Drago has struck with Caja Madrid, which merged with other cajas earlier this year to create new group, Bankia. In November last year, it paired up with Cerberus Capital Management in a larger deal to buy 97 branches in deal valued around €100 million.
In this latest transaction, Caja Madrid is leasing bank the properties on 25-year terms. Drago did not reveal the value of the transaction. Loans for the deal were provided by Spanish savings bank La Caixa.
Drago Capital’s deal comes amid further signs that foreign firms are selectively making investments in Spain despite its obvious macroeconomic weaknesses such as high unemployment.
Doughty Hanson & Co Real Estate and Perella Weinberg are examples of other firms that have recently put equity to work in the country.