- Hotels, apart-hotels and city hotels, which must comply with the following principles:
- Appropriate market price.
- Focus on assets with revaluation possibilities by repositioning or by acquisition in special situation.
- Annual rent derived from rents from agreements with hotel operators / managers (or complementary sectors).
- Management of the hotel (or complementary sectors) by operators of recognized solvency.
- The amount of default investment will oscillate between 10 million and 50 million euros; Unless there are duly substantiated exceptions.
GEOGRAPHICAL AREA HOTEL SECTOR
Inside the Spanish market, the Balearic Islands, the Costa del Sol and the Canary Islands (these are destinations that allow diversification at market level), along with a complement of investment in cities such as Barcelona, Madrid and others, without ruling out good price opportunities in other geographical areas. At an international level, in the initial phase, priority will be given to nearby areas such as Portugal, leaving internationalization to other countries for later phases.
Complementary sectors: Where opportunities arise especially in the private hospital sector and nursing homes.
Acquisitions through own equity capital and bank subrogation or financing around 50-60%.
100% direct investments, although according to the size of the investment and opportunity, it will be possible to co-invest with other entities, under agreements of partners that regulate the characteristics of entry, permanence and potential ivestment.
INVESTMENT AND FINANCING PHILOSOPHY
During the first three years, each one of the investments (improvements, repositioning, valorization, etc) will be acquired and optimized, if appropriate.
From the fourth year, the focus will be on the following objectives:
- Maintain investment in order to articulate and optimize incomes.
- In case of detection of an opportunity to sell some of the assets, either because of the value creation approach that has been given to the investment from the beginning, or because there is an offer for some investments (rentiers), the said assets will be sold in order to obtain capital gains and with a long term duration.
ASSET ROTATION POLICY
Mallorca Capital has a policy of long-term permanence (patrimonialist character), although, it is possible to detect sales opportunities over time.
In this sense, the average objective of asset turnover is 7 to 8 years for hotels for reinvestment in other assets of interest, depending on the market situation.