Meridia targets €400m for its largest value-added fund

The Barcelona-headquartered has already completed a first closing and outlays for the fifth in its value-add fund series.

Meridia Capital, the Barcelona-based private real estate manager specializing in value-add investments across Spain, has hit the fundraising trail for the fifth vehicle of its flagship fund series.

It is understood the firm has set a €400 million fundraising target for Meridia V which, if achieved, would make the vehicle the firm’s biggest since its inception in 2006. A second closing is expected before the end of the year ahead of a final closing in 2024.

Predecessor Meridia IV was closed on €250 million in 2020, Meridia III attracted €215 million by final closing in 2017, 2016’s Meridia II attracted €150 million, while the firm’s first vehicle raised in 2007 is understood to have collected the same amount, according to PERE data.

The firm announced the launch of the fund this week, without stating the fundraising target, as well as a first, unspecified closing and its first investment: a portfolio of two hotels. One is the Hotel Gallery in Barcelona, the other is the Hotel Molina Lario in Málaga. It is understood the equity outlays for these assets amounts to approximately 10 percent of the fund’s target capital.

Héctor Serrat, partner at Meridia, said “Meridia V aims to capitalize on the current window of opportunity in the Spanish real estate market and deliver superior value for our investors. Our initial investment in these prime hospitality assets of Barcelona and Málaga is a clear example of such strategy and presents a strong opportunity with multifaceted prospects for unlocking value.”

Meridia declined to comment beyond its announcement. However, it is believed the confidence to raise its largest fund comes on the back of strong performance for the series so far. Indeed, according to a source familiar with the firm, the series has produced gross IRRs of between 18 and 20 percent and a 2x equity multiple over more than 60 transactions, about half of which have been fully realized.

Cristina Badenes, Meridia’s head of investor relations, said in the announcement: “With our unwavering commitment to delivering consistent results and a longstanding track record, we continue to be a partner of reference in the market.”