Add Capital set to invest 500–700 million in Spain

Add Capital is focusing on Spain with an investment plan totalling between 500 and 700 million euros. The aim of the company – which combines private equity and property investment – is to build a cross-border platform between Italia and Spain: two markets which, according to the company, share numerous similarities and in which the group intends to develop an integrated model for investment, development and operational management. The strategy for the newly established platform’s expansion beyond national borders was outlined by the CEO and founder, Mario Abbadessa (formerly managing director for Italia and head of European investments at the US giant Hines), during one of the panel discussions on the second day of The District 2026, the event dedicated to European property with a focus on Southern Europe, which is bringing together the entire property investment sector in Madrid until tomorrow.

The expansion into Spain will be carried out through the Add Value Fund – the pan-European private equity vehicle focused on the home sector, with expected returns of between 12 per cent and 15 per cent – distinct from the fund earmarked for Italia (Add Italy Living), which will invest 1.1 billion and will also be active under the ‘Piano Casa’ scheme. The model envisages integration between PropCo and OpCo, with Add Capital responsible for investment, project delivery and operational management through collaboration with local partners. However, according to Abbadessa, the company has not yet identified or finalised partnerships to bring the first projects and investments in Spain to fruition.

However, geographical expansion will not be limited to Spain. Add Capital will focus in particular on the Barcelona–Madrid axis, without ruling out locations such as Málaga or Valencia, but will also regard cities such as Porto and Lisbon as strategic, thus extending its interest to the entire Iberian Peninsula. In terms of asset classes, the main area of investment will remain residential property in all its forms, including student accommodation. Added to this are logistics and ‘affordable hospitality’, which includes hostels, campsites and budget hotels.

Italia is likely to join the Iberian Peninsula and France, as the company has already announced. To date, Add Capital has raised €2.3 billion in discretionary capital to be invested in the coming months and is targeting a potential investment, including leverage, of around €5 billion. The platform aims to become a leading player in the residential sector in Italia and Southern Europe.