Andbank España is launching its exclusive Atalaya fund, which will invest in holiday hotels located in the main beach areas

Andorra, 12 November 2020.

Andbank España, an institution specialising in private banking, has begun marketing the Atalaya venture capital fund structured and managed by Navis Capital Desarrollo, which intends to invest in holiday hotels located in the main beach resorts on the Spanish coastline, a plan whose short-term viability has been affected by the coronavirus crisis.

With a target amount of between 150 and 200 million euros (including leverage), Atalaya intends to purchase between six and ten average-sized 4-star hotels (with around 150 and 200 rooms) located chiefly in the Balearic and Canary Islands and the Costa del Sol, common destinations for domestic and European sun and sand tourism. In order to provide more protection for the investment, the vehicle will purchase the hotel business and properties.

THB Hotels, a 100% family-owned business group that has specialised in the management of coastal hotels for 30 years, will be the premier operator of the assets that are acquired.

The envisaged term of the fund is six years and the target IRR stands at around 15%. According to Eduardo Martín, product director at Andbank España, “the crisis caused by the coronavirus has had a very significant impact on the Spanish hotel sector. Our analyses show that it’s a short-term situation and that, when the industry’s recovery begins, it will start with the coastal holiday hotels”.

Stephan Koen, a partner of the Navis Capital Desarrollo fund manager, believes that “investing in Atalaya is an opportunity for investors to obtain an attractive return on an investment in the hotel sector, with underlying property that provides additional protection”.

The Atalaya venture capital fund, registered with the CNMV, is designed for individuals with large net worth and private banking customers and requires a minimum investment totalling 250,000 euros.

More than 600 million euros in alternative investments

Andbank España is a pioneer in offering its customers investment opportunities in real economy projects enabling them to diversify their portfolios and obtain returns that are not correlated with the markets.

The bank ended 2019 with more than 600 million euros from customers invested in this kind of product, including funds that invest in asset-rich businesses (infrastructures, property and renewable energies) and other market opportunities, such as venture capital funds, private equity and market operations in which the institution perceives value (capital increases, IPOs in the ASM, etc.).