Buenavista Equity Partners, a private equity firm specialising in the lower/mid-market segment in Spain, through its Buenavista NextGen Urbano fund, has completed a transaction to finance the development of an 80-suite premium aparthotel in Zarautz, Guipúzcoa, in Basque Country. The total investment in the project amounts to €20.8 million.
The financing is structured through Suite Inurritza, S.L., a special purpose vehicle majority-owned by Promociones B.Martija, S.L., to which Buenavista NextGen Urbano will contribute €7.9 million, comprising a minority stake in its share capital and a participatory loan. The project’s financing is supplemented by a bank loan provided by LABORAL Kutxa.
The aparthotel will be operated by the ABBA Hoteles chain under a lease agreement, while construction will be carried out by Construcciones Amenábar. The expected construction period is 20 months.
The building, for which planning permission has been granted, will comprise 80 suite-style units, each featuring a double bedroom, a living-dining room with an integrated kitchen and a private bathroom. The building will comprise six storeys, a roof terrace with a jacuzzi and solarium, and two basement levels with car parking.
“Being part of a project that will contribute to sustainable development and set a benchmark for tourism on the Basque coast is particularly significant for us. This is a clear example of how we can deploy European financial instruments to drive local projects, which generate high-quality assets that bring lasting value to the region and its visitors, as well as significant economic activity and job creation”, said Victoriano López Pinto, Managing Partner of Buenavista Infrastructure.
Buenavista NextGen Urbano has been advised on legal matters by BDO Abogados, with Baker Tilly acting as commercial adviser. AFI has led the sustainability review and Howden has acted as insurance adviser.
Buenavista is channelling this investment through Buenavista Nextgen Urbano, the vehicle launched by its Infrastructure department after being designated as a financial intermediary to channel €200 million from the Fund of Funds created by the EIB with resources from the Regional Resilience Fund, which forms part of Spain’s Recovery, Transformation and Resilience Plan and is financed by Next Generation EU. These funds are intended to support economically viable projects linked to affordable housing, urban development and sustainable tourism.
With this investment in the aparthotel in Zarautz, the fund has now completed four financing deals for urban regeneration and sustainable tourism projects in Spain, following its support for the roll-out of Eranovum’s charging points; for Gemswell Madrid Surf, for the construction of Europe’s largest artificial surf lagoon; and for Sokai Gipuzkoa, to develop its life sciences centre in San Sebastián.
