Investment firms Inbest and GPF Capital are joining forces in the real estate sector to create a new REIT that is already established, capitalised, and has successfully completed its first two acquisitions. Inbest and GPF will share seats on the Board of Directors and the Investment Committee, while the executive functions are delegated to the current Inbest team, led by Javier Basagoiti.
Inbest and GPF continue to expand their presence in the real estate sector. Both firms have more than €2,000M of assets under management, more than 30 professionals and 19 investment vehicles including BME growth listed REITs and unlisted vehicles. After an initial co-investment together in several assets, including the entire commercial area of the Edificio España in Plaza de España (Gran Vía 84, a space that has been transformed by this co-investment and where Inditex has opened one of the most important Zara shops in the world, a global pioneer in terms of innovation, logistics and sustainability), the firms have decided to join forces and redouble their investment in the prime real estate sector. By doing so, Inbest and GPF have just formed Inbest-GPF Real Estate Management Partners, which in turn has launched its first vehicle Inbest-GPF Multi Asset Class Prime REIT. This REIT already has committed capital from domestic and international private and institutional investors, which will enable it to purchase assets worth more than €600M.
The investment strategy of the new REIT focuses on multi-segment real estate assets with a value-added management strategy and on locations or types of assets that are prime due to their characteristics and are considered a safe haven for investors due to their resilience in economic cycles.
Along these lines, the new REIT has just completed the acquisition of two commercial buildings from El Corte Inglés for an amount of over €50M. These buildings are located in prime locations in Seville (5,500m2 in Plaza del Duque de la Victoria) and Cordoba (6,660m2 in Calle Jesús y María 5, 7 and 9). These are two unique assets given the scarcity of relevant retail space in the areas where they are located and which also have unique characteristics to accommodate the new trends in High Street Retail where the main international operators require their new physical shops to be large to accommodate their flagships and to be located in the best areas of major cities, with high customer density and with the capacity to manage last mile logistics.
In addition, Inbest-GPF is at an advanced stage of due diligence on potential investments in sub-sectors such as student housing, sports campuses, health and education centres, offices, residential and hotels, among others.
Over the last two years, GPF has made a strong entry into the real estate sector, building up a portfolio of prime real estate assets of more than €300M with various acquisitions such as; (i) Axis building in Plaza de Colón 1 designed by Norman Foster with Caixabank as long-term tenant, (ii) building in Paseo de la Castellana 2, (iii) "High Street Retail" assets through Inbest REIT which includes the commercial space of Edificio España in Plaza de España (Gran Vía 84) as well as buildings leased to El Corte Inglés in the main shopping areas of Bilbao (Gran Vía 20) and Valencia (Colón 1) and the building in Princesa 41 in Madrid, leased to BBVA and Alcampo, (iv) development of 30 homes in the prestigious Valdemarín area of Madrid, (v) a portfolio of medium-sized parks throughout Spain and (vi) various logistics warehouses in northern Spain.
In relation to the acquisition of the assets in Seville and Cordoba, El Corte Inglés has been advised by Knight Frank while Inbest-GPF has been advised by Cuatrecasas, Deloitte and ARetail.
About Inbest
Founded by Javier Basagoiti, Inbest started its activity in 2008. It has a team of more than 15 multidisciplinary professionals with more than 30 years of experience in the real estate sector, c.400 investors, 10 investment vehicles and more than €1bn under management since its inception.
About GPF Capital
Founded in 2015 by Martín Rodríguez-Fraile, Ignacio Olascoaga, Lorenzo Martínez de Albornoz and Guillermo Castellanos. GPF currently manages more than €1bn of capital with exclusive participation of family offices and private investors from Spain, the United States, and Latin America
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