Millenium Hospitality has raised an additional €245.7 million through a capital increase, which it plans to use on buying assets to turn into luxury hotels in key destinations.
The increase takes the total amount committed by US investment fund Castlelake to €180 million, reinforcing its position as the main shareholder of the company up to 49.72% of the share capital of the Socimi (Spain’s equivalent of the REIT).
The company's goal is to have a portfolio worth €1 billion (by gross asset value) and it already has an investment pipeline of approximately €600 million, including some that are in an advanced negotiation position.
The funds obtained from the expansion of capital will be used over the next 18 months.
Millenium's investment policy is focused on the acquisition of high-end real estate quality with hotel potential and located in the main tourist destinations of Spain and Portugal.
Castlelake acquired a minority stake in the business last year.
Last week Millenium Hospitality and Nobu announced a partnership for a new hotel in Madrid.
What They Said
Javier Illán, president of Millenium, said: "The strong support received is a clear indicator interest and attractiveness of the project and the Millenium strategy, and represents strong support for the management of the company and the work done to date. This operation executed in a changing and complicated market environment, places us in an advantageous position to benefit from the opportunities that currently offered by the market and without a doubt the support and commitment of Castlelake ratifies the potential of growth and development of the company.”