Our Value Creation Business
Quartiers focuses on acquiring underperforming projects with room for creating and unlocking value, turning them into profitable businesses. Value creation can be obtained by implementing adequate management, for instance, by targeting the right market segment for the product or by negotiating with expected changes in regulations which can increase the buildability rights and the renovation of the assets. Some projects are sold, while others are managed and let, which provides the company with cash flow and the opportunity to increase value when the property is either sold or revalued for refinancing on improved loan terms.
The company’s focus on investment properties aims to develop a stable base, with cash flow-generating and profitable properties, as well as to increase the value of the properties. The company’s primary focus in this segment is holiday apartments such as rental apartments and hotels. One of the reasons for this operational focus is the strength of the tourist industry in the Malaga region, as well as the fact that in times of financial uncertainty, the tourist industry has historically proven more stable than the rest of the Spanish economy.
QUARTIERS APARTMENT HOTEL & RESORT
The property in brief
- Status: Operating apartment complex.
- Municipality: Benahavís.
- Market value: EUR 34,700 thousand.
- Average value per apartment: EUR 343.6 thousand.
- Taken over and paid for in full.
- Purchase price: EUR 17,200 thousand.
- Purchase price per apartment: EUR 170 thousand.
Property description
Quartiers Apartment Hotel & Resort comprises around 100 apartments in an apartment complex known as Hacienda del Señorío de Cifuentes in Benahavís municipality, which neighbours Marbella municipality. Since 1 January 2019, this business has been operated by Quartiers’ wholly owned subsidiary Quartiers Management. See page 16 for further information about Quartiers Management.
The property is part of the Property Refinement business segment and clearly illustrates how Quartiers has successfully converted a rundown facility into an attractive resort for both holidaymakers and permanent residents. The value-adding measures that Quartiers has taken have contributed to increasing the value per apartment from EUR 170 thousand at purchase in 2015 and 2016, to EUR 344 thousand per apartment currently.
QUARTIERS APARTMENT HOTEL & RESORT
Quartiers has 99 apartments in the Quartiers Apartment Hotel & Resort at Hacienda del Señorío de Cifuentes in Benahavís municipality, which neighbours Marbella municipality, that are rented out both short and long term. https://www.quartiersproperties.com/
QUARTIERS APARTMENT HOTEL & RESORT
The property in brief
- Status: Operating apartment complex.
- Municipality: Benahavís.
- Market value: EUR 34,700 thousand.
- Average value per apartment: EUR 343.6 thousand.
- Taken over and paid for in full.
- Purchase price: EUR 17,200 thousand.
- Purchase price per apartment: EUR 170 thousand.
Property description
Quartiers Apartment Hotel & Resort comprises around 100 apartments in an apartment complex known as Hacienda del Señorío de Cifuentes in Benahavís municipality, which neighbours Marbella municipality. Since 1 January 2019, this business has been operated by Quartiers’ wholly owned subsidiary Quartiers Management. See page 16 for further information about Quartiers Management.
The property is part of the Property Refinement business segment and clearly illustrates how Quartiers has successfully converted a rundown facility into an attractive resort for both holidaymakers and permanent residents. The value-adding measures that Quartiers has taken have contributed to increasing the value per apartment from EUR 170 thousand at purchase in 2015 and 2016, to EUR 344 thousand per apartment currently.
Boho Club
The property in brief
- Status: Ongoing refurbishment of hotel & restaurant.
- Municipality: Marbella.
- Buildable area: awaiting new local development plan.
- Area of existing buildings: 4,954 square metres.
- Plot area: 21,959 square metres.
- Purchase price: EUR 9,582 thousand.
- Valuation: EUR 10,700 thousand.
- Number of units: Two restaurants and approximately 50 rooms.
- Opening of hotel and restaurant: 2019 (estimated).
- Taken over and paid for in full.
Property description
Boho Club will be Marbella’s new destination hotel, located less than two minutes’ walk from the beach in Marbella and within walking distance of the Puerto Banús luxury marina. The hotel and restaurant will be positioned in the higher price segment in which the main competitors are currently Marbella Club, Puente Romano and Nobu Hotel. There is currently a lack of options in this price segment of the market, which together with increasing demand from an affluent target group enables both hotels and restaurants to take market share and achieve good margins within a short period of time. The property is unusual with regard to planning as Quartiers is awaiting a new local development plan with additional construction rights. For that reason, the majority stake in the operating company is important as it gives Quartiers the flexibility to fully leverage the property’s potential value in both the short and long term.
BOHO CLUB HOTEL
The Boho Club will be Marbella’s new destination hotel, located less than two minutes’ walk from the beach in Marbella and within walking distance of the Puerto Banús luxury marina. Acquired in 2017, this property is currently being refurbished and both the hotel and restaurant are expected to open in 2019.
Boho Club
The property in brief
- Status: Ongoing refurbishment of hotel & restaurant.
- Municipality: Marbella.
- Buildable area: awaiting new local development plan.
- Area of existing buildings: 4,954 square metres.
- Plot area: 21,959 square metres.
- Purchase price: EUR 9,582 thousand.
- Valuation: EUR 10,700 thousand.
- Number of units: Two restaurants and approximately 50 rooms.
- Opening of hotel and restaurant: 2019 (estimated).
- Taken over and paid for in full.
Property description
Boho Club will be Marbella’s new destination hotel, located less than two minutes’ walk from the beach in Marbella and within walking distance of the Puerto Banús luxury marina. The hotel and restaurant will be positioned in the higher price segment in which the main competitors are currently Marbella Club, Puente Romano and Nobu Hotel. There is currently a lack of options in this price segment of the market, which together with increasing demand from an affluent target group enables both hotels and restaurants to take market share and achieve good margins within a short period of time. The property is unusual with regard to planning as Quartiers is awaiting a new local development plan with additional construction rights. For that reason, the majority stake in the operating company is important as it gives Quartiers the flexibility to fully leverage the property’s potential value in both the short and long term.