Grosvenor Europe, one of the four operating companies of the privately-owned international property group, Grosvenor Group Limited, has agreed a €70m joint venture with Malaysian publicly listed company, Amcorp Properties Berhad (Amprop).
The 50-50 joint venture will invest in a portfolio of real estate development and value add projects in Madrid, led by Grosvenor Europe’s Madrid-based team. The deal marks the beginning of a refreshed strategy for Grosvenor Europe, which was previously known as Grosvenor Fund Management until 1 July 2016.
While the property company will continue to manage its existing fund vehicles, Grosvenor will also invest its own capital alongside partners in a selection of high performing cities on the continent: Paris, Madrid, Milan and Stockholm. The business will also maintain its focus on Lyon and Liverpool, given its existing dominance and experience in these locations.
As part of its new strategy, Grosvenor will target value add opportunities, where it can use its skilled local teams to drive returns above market levels. These opportunities will be city-centre based and, whilst retail continues to be at the heart of strategy, the company will be looking to adopt a holistic approach to real estate. As such most assets will be mixed use and include elements of leisure, residential and offices.
James Raynor, Chief Executive Officer, Grosvenor Europe, said, “We anticipate that, in the mid and long term, values will recover strongly in Madrid and the historic nature of property in the city centre will allow us to look for both restructuring opportunities and long term growth capture, so it’s an exciting position to be in. Grosvenor has been active in Spain for ten years and so we are well placed to find strong redevelopment and value add opportunities. We are looking forward to further developing our expertise and exposure to the local market alongside this existing partner of Grosvenor.”
