Key Takeaways
- Sector: Real Estate, Leisure.
- Geography: Spain.
Analysis
Buenavista Equity Partners is injecting €7.9 million into a premium apart-hotel development in Zarautz, a sought-after destination on Spain's Basque coast. This strategic investment, channeled through its Buenavista NextGen Urbano fund, underscores a commitment to sustainable urban regeneration and high-quality tourism infrastructure.
The total project cost is pegged at €20.8 million, with the apart-hotel set to feature 80 suites. Buenavista NextGen Urbano's contribution comprises a minority equity stake and a participatory loan, demonstrating a flexible financing approach. The remaining capital will be secured through bank debt provided by LABORAL Kutxa. The development entity for this venture is Suite Inurritza, S.L., a vehicle primarily backed by Promociones B.Martija, S.L.
This initiative aligns with broader European recovery efforts, as Buenavista NextGen Urbano is designated to deploy €200 million from the EIB's Fund of Funds, utilizing resources from the Autonomous Resilience Fund (FRA) under Spain's Recovery, Transformation, and Resilience Plan, financed by Next Generation EU. These funds are specifically earmarked for viable projects in affordable housing, urban development, and sustainable tourism.
The apart-hotel, slated for a 20-month construction period, will be managed by the established hospitality group ABBA Hoteles under a lease agreement, adding a layer of operational stability. The six-story building will offer spacious suites, a rooftop terrace with a jacuzzi, solarium, and underground parking. The project has already secured its construction permits, signaling readiness for development.
Victoriano López Pinto, Managing Partner of Buenavista Infrastructure, highlighted the project's significance: “Participating in an initiative that will foster sustainable development and establish a benchmark for tourism on the Basque coast is particularly meaningful for us. This exemplifies how European financial instruments can empower local projects, creating quality assets that deliver lasting value to the region and its visitors, while also generating substantial economic activity and employment.”
This Zarautz apart-hotel marks the fourth project financed by the Buenavista NextGen Urbano fund in the urban regeneration and sustainable tourism sectors within Spain. Previous investments include charging point deployment for Eranovum, the construction of Europe's largest artificial surf lagoon by Gemswell Madrid Surf, and the development of a life sciences center in San Sebastián for Sokai Gipuzkoa.