Mexican RLH Properties Buys Villa Magna, Madrid, for Euros 210m

Mexican RLH Properties Buys Villa Magna, Madrid, for Euros 210m

Date: November 2018

Location: Madrid, Spain

Name: Villa Magna

No. of Keys: 150

Seller: Turkish Dogus Group. Agent JLL handled the sale for Dogus, having sold it the property in 2016 for €180m, from the Portuguese Queiroz Pereira family.

Doğuş Holding A.Ş. is one of the largest private-sector conglomerates in Turkey, with a portfolio of 250 companies in 7 industries, including high-end Porsche, Audi, and Volkswagen dealerships, retail stores, restaurants, cafes, construction companies, radio stations, TV channels and tourism businesses.

The group used to own one of Turkey’s largest banks, Garanti Bank, now part of Banco Bilbao Vizcaya Argentaria.

Dogus, headed up by Ferit Sahenk is thought to have been hit by the Turkish economic downturn and could be looking to off-load some of his other luxury hotels.

Dogus under it’s D-Hotels & Resorts Group and Mytha Hotel Anthology has some fairly serious hotel interests…Grand Hyatt Istanvbul, Park Hyatt Istanbul, Soho House Istanbul, Capri Palace and Villa Dubrovnik.

Buyer: Mexican asset manager RLH Properties, founded by BK Partners, who has said the buy is the first of several planned as it expands internationally.

The purchase of Hotel Villa Magna is part of the growth strategy of RLH Properties and it consolidates the company’s position as a leading owner of hotels in the high-end segment in Mexico and Spain.

It is one of the largest purchases of a hotel property in Spain in the last decade.

The deal is scheduled to close in mid-December.

According to Jerónimo Bremer, President of the Executive Committee of RLH, and founding partner of BK Partners, “This operation represents an important milestone in our strategy of investing in unique real estate assets for the hotel sector.

The acquisition of Hotel Villa Magna, one of the most representative of Europe in the luxury segment, also confirms our enormous confidence in the Spanish market, one of the most dynamic and attractive in the world. ”

As stated by Borja Escalada CEO of RLH Properties and partner of BK Partners, “The purchase of Hotel Villa Magna is the first step in our international expansion, with an emblematic luxury hotel located in the best area of Madrid.

The Villa Magna hotel, founded in the 1970’s on the Paseo de la Castellana in Madrid, was born to compete as a modern establishment compared to other hotel offers and to lead the luxury segment.

Historically it was managed by Hyatt. It was completely remodeled in 2009.

RLH Properties is currently the owner, among other assets, of the Four Seasons Hotel in Mexico City, the Rosewood Mayakoba Hotel, Banyan Tree Mayakoba, Andaz Mayakoba, Fairmont Mayakoba, the PGA El Camaleón golf course and the Mandarina Development, which includes the Hotel One & Only Mandarina, currently under construction, Hotel Rosewood Mandarina, in development, along with residential developments.

On the buyer’s side, Credit Suisse has acted as the financial advisor, and Pérez-Llorca, as the legal advisor; and on the side of the seller, JLL, as the real estate investment adviser, and Clifford Chance, as the legal advisor.

BK Partners, whose partners are Allen Sangines-Krause, Jerónimo Bremer, Juan Bremer, and Borja Escalada, is an investment firm dedicated to the creation of investment vehicles and companies in in order to capture specific market opportunities within the hotel, real estate, and renewable energies sectors.

BK Partners aim is to create leading companies through active and direct management, focused on the creation of value and growth of expert teams. BK Partners has sponsored vehicles that currently have, assets close to 2,500 million US dollars.

Price: €210m

Price per Key: €1.4m

THPT Comment: A classy hotel, sold to an interesting company that clearly has plans for rapid expansion into Spain/Europe. A hefty price.

First Seen: PR Newswire

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