Europa Capital, the pan-European real estate investment manager, has signed an option to acquire a 15th century palace in the centre of Palma, Mallorca, from a private individual. Europa Capital intends to restore the palace and reconfigure the internal space to create 14 unique high-quality homes. This planned c. €22 million investment by Europa Fund V builds on Europa Capital’s track record of residential redevelopment in Spain where it has completed, or is currently transforming, ten properties into 150 prime apartments and 17 houses for sale to domestic and international private individuals.
The palace also features a 650 sq. metre communal garden and will benefit from an exceptionally high-quality refurbishment, complemented by resident parking and modern amenities. Europa Capital is partnering with local developer, Bonavista Developments, with whom it has worked with successfully in the past.
While the oldest part of the palace dates back to the 15th century, the main historical core was constructed in the 16th century, with further extensions being undertaken in the 17th and 18th centuries. Significant restoration works were carried out in the late 1800s and early 1900s involving the central stairwell, the first floor and the facades, most of which were delivered in the neo-gothic style
The palace is located in the centre of Palma Old Town, opposite the Plaza Mayor, and within minutes of restaurants, shops and cultural hotspots such as the Modern Art Museum and the “Teatre Principal de Palma”. The palace also boasts convenient public transport links and is located within a 20-minute drive from Palma de Mallorca Airport.
The project is also expected to capitalise on Palma’s continuing transformation from being primarily used as an access point to the rest of Majorca to becoming a much sought after destination in its own right, attracting an increasing number of visitors and residents.
Across its past three pan-European funds Europa Capital has invested significantly in the residential sector, pursuing entitlements for over 9,500 units and delivering in excess of 2,500 completed housing units across Europe.
Jason Oram, Partner at Europa Capital, commented: “The acquisition of this 15th century palace provides us with a very rare and exciting opportunity to take a highly attractive, and well-located building of historic importance and breathe new life into it with a much needed and thorough restoration, as well as a reconfiguration into new unique houses. Larger than both Nice and Bilbao, and often now dubbed ‘Little Barcelona’, Palma is undergoing its own transformation and offers great future potential that we believe will lead to significant demand for the residential space we intend to deliver at this project.
“The restoration of this palace also reflects our strategy of targeting prime residential assets within structurally supported and improving international cities, not least in Spain where we have a strong track record. This opportunity is also in line with our strategy of working with an experienced partner to deliver a high quality residential product in attractive locations.”
For further information, please contact:
Dido Laurimore/Richard Sunderland/Tom Gough/ Eve Kirmatzis
FTI Consulting
Tel: 020 3727 1000
Europa@fticonsulting.com
Notes to Editors:
About Europa Capital:
Europa Capital is an established real estate fund management group operating across Europe adding value through risk-based acquisition strategies and active asset management on behalf of its investors.
Since 1995, Europa Capital has collectively raised nine real estate funds and committed to over 130 transactions totalling more than €11.0 billion across 19 European countries.
The Europa Funds benefit from Europa Capital’s established network of partners across Europe who co-invest in acquisitions made by the Europa Funds. These country and joint venture partner relationships in some cases extend back more than 20 years.
Europa Capital is a member of Rockefeller Group International, Inc. (“RGI”), a subsidiary of Mitsubishi Estate Co. Ltd. RGI is a strategic investor alongside Management. Europa Capital Partners LLP and Europa Capital LLP are authorised and regulated by the Financial Conduct Authority.
Further information can be found at www.europacapital.com
