RoundShield Partners has supported its borrower, Sierra Blanca Estates, in the successful development and sale of a prime residential portfolio, consisting of two high-end residential development projects in the Costa del Sol, as well as readying an additional site for a third high-end residential project to be developed at a later stage.
RoundShield provided a €70m senior secured loan to Sierra Blanca Estates in April 2019, allowing the family-owned company to retain ownership of two Marbella Golden Mile-located sites. RoundShield also financed the development of a landmark beachfront high-rise apartment complex, Malaga Towers. The portfolio includes Epic Marbella, Spanish history's first fashion-branded residential project. RoundShield's asset-backed approach generated significant returns of a 21% IRR and 2.2x multiple. The position is now fully exited by RoundShield, with Sierra Blanca Estates in a strong and well-capitalised position.
Ignacio Lliso, Managing Director at RoundShield, commented: “RoundShield is proud to have supported Sierra Blanca Estates in becoming the leading luxury developer and pioneer in branded residences in the Costa del Sol. Our investment strategy seeks opportunities and assets with strong underlying fundamental value in need of private capital solutions and we are pleased to have shared in the success of Sierra Blanca Estates.”
Carlos Rodriguez, CEO at Sierra Blanca Estates, added: “RoundShield has been a strategic partner in supporting our company to achieve its most ambitious goals and complete our transformative vision, fulfilling our founding commitment as a luxury real estate developer on the Costa del Sol. Their support and flexibility have been a key element to allow Sierra Blanca Estates to grow and become a leader in this market in record time.”
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