Quartiers Properties enters into operating and cooperation agreement for a new lifestyle hotel at Centro Forestal Sueco in Marbella
Quartiers Properties AB (publ) has entered into an operating and cooperation agreement regarding the development and operation of a new lifestyle hotel and restaurant on part of the plots known as Centro Forestal Sueco in Marbella. Quartiers will own 50 percent of the new operating company, which is expected to open for business in mid-2019. The hotel will initially have around 50 rooms, and the property company will invest approximately EUR 1.2 million in the project. The remaining EUR 3–4 million will be invested by the jointly owned operating company. The company still owns 100 percent of the property, and the normalised net operating income, excluding future dividends from the operating company, is estimated to correspond to a yield of between 7 and 8 percent.
The remaining 50 percent of the operating company is owned by Raouf Lotfi and Faddi Tabarra. As well as experience and co-ownership of several international restaurant and hotel projects, Raouf also founded the renowned Finca Besaya in Marbella, which he managed for a long period. Raouf will play a leading role in the operation and development of the new operating company. Faddi Tabbara has extensive experience of the financial industry, focusing primarily on asset management. This included a spell as head of asset management at Samba Financial Group, which previously formed part of Citi Group, and he is now an active investor on the Spanish Costa del Sol.
“This deal is well suited to our business model and dovetails with our plan to invest in properties targeted at the strong, growing tourism industry in the Malaga region,” said Quartiers’ Interim CEO, Marcus Johansson Prakt.
The concept of the hotel and planned restaurant was devised together with Raouf Lotfi and the Swedish concept agency Stylt Trampoli.
“We’ve been working alongside Stylt and our new partners for some time to devise a concept for the hotel and restaurant business, and we all have a lot of faith in the direction we’ve taken. The new hotel and restaurant have everything required to become a destination in their own right and make their mark on the Marbella hotel market,” said Quartiers’ Interim CEO, Marcus Johansson Prakt.
The tenancy agreement is for 15 years, and the operating company will start paying rent in mid-2019. The investment will be financed through equity and loan financing, and discussions are currently in progress.
The yield calculation is based on the property’s EUR 10.0 million valuation and normalised minimum rent of EUR 750,000 a year. There is also sales-based rent, which could generate additional returns for the company. The lettable area is 23,231 square metres of land, with buildings covering around 3,530 square metres which will be renovated. Both parties share the ambition to expand the number of rooms and the developed area over the next few years of operation.
For further information, please contact:
Marcus Johansson Prakt, Interim CEO
Phone: +46 (0)72-018 59 98