Just weeks after closing a Koliving acquisition in Valencia, Boss Capital returns to the ring and buys two new properties. In this case, British fund bought one building in Barcelona and another in Bilbaoat Calle Muntaner 448 and Calle General Concha, respectively.
In total as endorsed by El Periódico de España invested 15.9 million euros: 10 million for Barcelona and 5.9 million for Bilbao. In parallel, it closed a financing of 12.41 million in connection with both operations: a 7-year mortgage-guaranteed loan with Banco Santander and a syndicated loan with Kutxabank and Caja Laboral for the next year, again guaranteed by the property. 15 years. year. This debt is added to the 10.79m euros issued by Ecuadorian financial institution Pichincha a few days ago.
Located in the Catalan capital, it is in the Sant Gervasi-Galvany district, next to Monterol Park. It is 3,405 square meters in an area with a medium-high standard of living. According to the Brainsre Real Estate Big Data platform, the average price in the region is 5,130 euros per square meter, so the British fund bought the asset at a huge discount compared to the market. In the Abando area in Bilbao and 2,430 square meters. On average, buyers pay 4,400 euros per square meter in the region, which will bring the transaction to over 10 million compared to the less than 6 that Socimi pays.
The investment vehicle was purchased with a discount of close to 50% compared to the market. However, you will now need to invest money in repositioning these assets so that they perform well when leased. Considering the current context of rising building materials, a significant amount should be dedicated to this task.
Medium-term rental portfolio
Just a week ago this newspaper published the latest acquisition of Socimi Vandor, owned by the Boss fund, a residential building next to the Valencia Polytechnic University. Vandor paid 1.6 million to convert it into a 6-apartment residence for students. Socimi is building a rental platform in the middle of accommodation in Spain. The manager behind the project adds 4,000 million euros to the assets under his management and decides to allocate 200 million euros to his project in our country. Buying in Bilbao was one of the Boss’ wishesThose who want to settle in Valencia, Barcelona and Madrid as well as the Basque Country.
Vandor’s target audience will be students or professionals, a month to a year is loaded into the properties. In this way, it achieves a rotation that allows it to have above-market rents and forces it to devote more capital to the maintenance of the facilities, while not operating as a tourist apartment. The management of the leases is carried out by the company Cotown.