Becm: spain will recover

A major property fund has emphatically backed the Spanish property market to rise from the doldrums…

In a display of confidence in the recovery of the Spanish property market, Property fund Benson Elliot Capital Management (BECM) has agreed to purchase a 70 per cent stake in Spanish developer Promobuilding SL. The acquisition will provide the Spanish firm with approximately €500 million (£395 million) in capital to invest in Spanish property.

Marc Mogull, managing partner at Benson Elliot, explained: “With an excess of housing in Spain and not enough buyers, prices are low and the climate ripe for the company to pick up cheap property investments. We have the same outlook on the Spanish market and determination to create a leading platform that can make the most of the many distressed opportunities we are seeing in the Spanish housing market today."

A spokesperson for Costa del Sol-based estate agent Brennon Nicholas added: “Good Spanish properties can currently be acquired for as little as 70 per cent of the asking price”.