Benson Elliot acquires controlling stake in Promobuilding (ES)
Monday 9 June 2008
Benson Elliot Capital Management (“Benson Elliot”), the private equity real estate firm, announces the acquisition of a 70% stake in Barcelona-based property company Promobuilding SL, through a re-capitalization and subscription of new shares.
The investment in Promobuilding is expected to provide the company with up to €500 million of additional firepower to focus on the acquisition and development of distressed residential investment opportunities across Spain over the next two years, which will either be undertaken alone or with other select joint venture partners. Promobuilding’s senior management team will retain ownership of the remaining 30% of the company. No changes to the senior management team at Promobuilding are planned.
Founded in 2000, Promobuilding has grown into one of the leading residential development companies in Catalonia, employing approximately 40 people across a range of disciplines, including acquisitions and sales, asset and project management, planning and technical services, finance and marketing.
To date, Promobuilding has successfully completed eight primary residence developments and four renovation schemes in and around Barcelona.
Benson Elliot and Promobuilding first joined forces in mid-2007, investing in a prime land parcel just 150 metres from the sea in Mont Roig del Camp. The partners also created a joint venture to acquire a prominent residential site in Sant Fruitos de Bages (near Manresa) six months later. Both investments, made into an already distressed market, are progressing as planned.
Marc Mogull, Managing Partner at Benson Elliot, commented: “We are very pleased to be announcing this alliance with Promobuilding, expanding on our two initial joint venture investments. The company and its team are dynamic and highly respected. We have the same outlook on the Spanish market and determination to create a leading platform that can make the most of the many distressed opportunities we are seeing in the Spanish housing market today.”
Xavier Perez, Partner of Promobuilding, added: “We are delighted to be extending our relationship with Benson Elliot. The team there, and Marc in particular, have extensive experience investing successfully through market cycles, both directly and through partnerships. As this market restructures, there will be many opportunities available to sophisticated investors with access to a local platform such as ours. Over the next two years we anticipate growing our business significantly, investing alongside Benson Elliot and other partners. We are now in a position, exactly at the right time, to consolidate our position as a leading Spanish property company.”
Benson Elliot was advised on the transaction by Ashurst and Deloitte.
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