Alternative investment manager Castlelake has said it will acquire up to 49.9% of the shares of Millenium Hotels Real Estate, a Madrid-listed REIT that specializes in luxury hotel properties in Spain and Portugal.
Through the transaction, Castlelake will become the primary shareholder of the company and have three seats on its board of directors.
Castlelake's investment in MHRE builds on the firm's history of investing in Europe, where it has acquired more than 7,000 assets across 12 European countries since its founding in 2005.
"Through our investment in the Millenium platform, we aim to enable Castlelake's investors to obtain exposure to high quality assets in prime Spanish locations while opportunistically participating in the tourism sector's recovery from the Covid-19 pandemic," said Evan Carruthers, managing partner and chief investment officer of Castlelake.
"With substantial experience in the Spanish market and Europe more broadly, we believe Castlelake is uniquely positioned to support Millenium's business plan and help it achieve its strategic goals."
Javier Illán, president of Millenium Hotels Real Estate added: "Castlelake's support provides Millenium with a strong foundation on which to build momentum and maximize the creation of value for shareholders."
The Millenium portfolio is currently comprised of 10 hospitality assets across the main tourism destinations of Madrid, Alicante, Sevilla, Bilbao, Córdoba, Alcaidesa and San Sabastian, which Millenium has stated to be valued at approximately €500 million, once fully redeveloped.