French private equity group Eurazeo has joined forces with Spanish residential specialist Dazia Capital to build up a portfolio of residential properties across Spain's largest cities.
Under the agreement, Eurazeo will invest a total of €70 mln over the next three years to acquire assets in Madrid, Barcelona, Valencia and the Costa del Sol.
In addition, a new company set up by the two partners and to be known as Dazeo, will acquire an initial portfolio of three buildings in Madrid (Alcala, Santa Engrancia, and Santa Isabela) for an equity investment of €12 mln.
Plans are to redevelop the assets and sell them on a unit basis. The first project, Alcala, will encompass a total of 2,600 m2, including 23 apartments.
Dazia Capital will be responsible for managing the projects on a daily basis, from their development to the sale of finished apartments.
'In setting up this joint venture, our goal is to develop a value-added residential investment platform that will strengthen our position on the Spanish market,' said Renaud Haberkorn, managing partner of Eurazeo Patrimoine.
'We are already active in Spain, where we own nine hotels, whose performance underscore the vitality of the recovery, and now we wish to capitalize on the turnaround in residential real estate, where prices have not yet reach their 2008 level. To achieve this, we can rely on the local know-how of our partner Dazia Capital, and a seasoned team of professionals with an impressive track record in project sourcing.'