Quercus Investments has launched its second investment vehicle focused on retail premises in Madrid, with an investment capacity of €50 million, including financing. The new fund follows the successful completion of Proyecto Belén, whose divestment process is now virtually complete after delivering a net return of close to 30% for investors.
According to Fernando Garnica, co-founder and partner of Quercus Investments: “We have executed the first capital call after raising €20 million in equity, which gives us an investment capacity of €50 million including financial leverage.”
The fund’s strategy will focus exclusively on retail assets located within Madrid’s M-30 ring road, with particular emphasis on established districts such as Salamanca, Chamberí, Retiro and Justicia. The objective is to build a portfolio of between 15 and 20 assets, with investment tickets ranging from €1 million to €3 million per property, targeting opportunities with value-creation potential through repositioning initiatives.
The vehicle is backed by a base of qualified investors, comprising 70% Spanish family offices and 30% Latin American investors, primarily from Mexico and Colombia. In line with the firm’s investment philosophy, the fund will maintain a prudent financial policy, limiting leverage to 60% of each asset’s value.
Quercus will prioritise properties with lease agreements offering upside potential and will avoid the most overheated high-street locations, focusing instead on areas where there is greater scope for capital appreciation. In addition, all acquisitions will be subject to a comprehensive technical, urban planning and commercial due diligence process.
“We remain firmly committed to Madrid’s high-street retail market: rigorous analysis, LTV capped at 60%, and clear visibility on exit pricing,” Garnica concludes.
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The fund’s strategy will focus exclusively on retail assets located ...
