Real estate business

Värde Partners sells stake in Spanish real estate company LFGA after company successfully weathered pandemic

Värde Partners sold a 38% stake in Spanish real estate company La Finca Global Assets to majority owner Grupo La Finca.

LFGA has 11 buildings in the central business district of Madrid as well as LaFinca Business Park, one of the largest business parks in Europe, offering more than 225,000 m² of office space.

Värde Partners initially purchased its stake in LFGA in December 2016. The company said LFGA significantly increased its revenue and profitability in the run-up to Covid-19, and remained profitable throughout the pandemic.

Tim Mooney, Partner and Global Head of Real Estate at Värde Partners, said: “Through our partnership with GLF, we have successfully implemented a series of value creation initiatives that have increased our investment and contributed to make LFGA one of the main providers of office space in Madrid. .

“LFGA has continued to perform well, despite the challenges facing the office sector, and we believe it is well positioned to capitalize on the economic recovery when Spain emerges from the pandemic. “

The deal is expected to be finalized in the first quarter of 2022.

Other recent exits by Värde Partners include the sale of communications service provider GCX to 3i Infrastructure.

Värde achieved its largest private equity fundraiser in 2019, raising $ 2.47 billion in commitments for its 13th flagship investment vehicle.

In late 2020, the company rushed to a final close of $ 1.6 billion for the Värde Dislocation Fund in just five months, easily exceeding its target of $ 1 billion.

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