KKR & Altamar backed REIT buys 2 Madrid assets

Elix Vintage Residencial SOCIMI S.A., a Spanish REIT which specializes in repositioning residential buildings, has purchased two properties in Madrid for €8.4 million euros.

Established on the 20th of July of 2017, Elix VRS aims to reach a 15% IRR over the next 5 to 7 years with a portfolio of approximately 30 buildings. As at the end of Q1 2019, Elix Vintage had a portfolio of 12 assets with over 24,000m2 of GLA valued at €70.96 million.

The REIT is 81.68% owned by a joint venture vehicle (VINTAGE JV S.À R.L.) established by funds managed by Kohlberg Kravis Roberts & Co, L.P., or related companies and Altamar Capital Partners, S.L. Through this entity, KKR has a 44.8% in the Spanish REIT, while Altamar Capital Partners has an indirect 36.90% stake. The Spanish private equity company, however, has an additional 4.6% direct stake through its fund Altan IV Global IICIICIL.

In addition, Catalonian millionaire Manuel Puig Rocha owns a 5% stake in the SOCIMI through MAVEOR, S.L. With a fortune estimated at €850 million, Manuel Puig is one of the owners of fashion and fragrance company, Puig, which had a revenue of €1.93 billion in 2018.

The latest assets bought by the Spanish REIT are located on Madrid’s Fomento and Ave María street and are currently rented. The private equity firm will invest capex in the both buildings as they require «various interventions» as stated by the buyer.

Alvaro Guillen, director of Elix has explained that they are «very pleased with this new acquisition, in an area of strong rental demand which demonstrates Elix’s ability to face complex corporate deals».

In parallel, the SOCIMI has signed a €4 million loan with Alicante-based Banco Sabadell in order to be able to meet any payment obligations linked to their activity. The loan has a 12-month term with a fixed interest rate of 2.8% and is guaranteed with a pledge on shares of a subsidiary of the company.

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