India Real Estate Monitor

LONDON: Private equity real estate firm Benson Elliot Capital Management has bought a 70% stake in Spanish developer Promobuilding SL in a bid to cash in on distressed house building projects in Spain’s faltering economy.
The acquisition, which has been accomplished via a recapitalization and subscription for new shares, is predicted to provide privately owned Promobuilding with up to five hundred million dollar euros ($789 million) of supplementary firepower to pounce on capital-strapped developments and discounted investment opportunities across Spain over the coming two years.
The value of the 70% stake was not divulged. Promobuilding’s senior management team will keep possession of the rest 30 % of the company.
“We have the same outlook on the Spanish market and willpower to create a leading platform that can make the most of the many distressed prospectd we are seeing in the Spanish housing market today,” said Marc Mogull, managing partner at Benson Elliot.
Xavier Perez, a partner at Promo building, said the Benson Elliot partnership would provide his company with significant fuel for growth going onward.