Cheyne Capital, the global alternative asset manager, has announced that it has completed a €73 million senior loan to H.I.G. Capital, a global alternative investment firm with $59 billion of capital under management. The loan will finance the acquisition of three buildings of approximately 20,000 sqm in central Madrid. The buildings will undergo extensive renovation to transform them into high quality residential projects with strong environmental credentials, this new development seeks to absorb some of the steady growth in demand for housing in the city.
Located in the established residential area of Arturo Soria, the portfolio consists of three buildings: two office buildings and a hotel, which have recently received planning approval for transformation into an institutional angle residential project of some 267 units, combining units for sale and units for rent, with a comprehensive suite of amenities including swimming pools, gymnasium, restaurant areas, cinema, sky lounge and rooftop gardens.
Daniel Schuldes and Javier Quintela, stated on behalf of Cheyne Capital Real Estate:: "We are delighted to support the conversion of outdated and obsolete buildings into more energy efficient residential housing. The properties are very well located and will have excellent amenities, so we are delighted to partner with H.I.G. Capital to deliver this revolutionary and much-needed project for Madrid. This project will provide much needed high quality housing in today's market, helping to address the structural imbalance between supply and demand in Madrid".
