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US investment firm Marbanc International has commenced sourcing real estate opportunities in Europe to capitalize on distressed situations and special opportunities arising from high interest rates and bank foreclosures. The firm aims to deploy up to €1 billion over the next five years to acquire, renovate and develop properties with substantial landholdings with the view to hold long term and offer luxury short stay accommodation to discerning guests.
Since June last year, Marbanc has been evaluating and conducting due diligence on potential transactions in Ireland, France and Italy as part of its plans to accumulate a portfolio of undervalued real estate assets capable of being restored or developed to capitalize on their heritage and unique value potential.
Transaction are being evaluated in the range of €1 million to €100 million with the firm at negotiation phase with the vendor of a 28-bedroom Georgian Estate set on 25-acres in Ireland which has hosted many internationally renowned guests including politicians and Hollywood celebrities. The vendor faced the appointment of receivers after a loan default resulting in a unique buying opportunity for a real estate asset producing considerable annual income from weddings and short-stay accommodation.
Another opportunity which was evaluated but turned down by Marbanc involved a 14,000 square foot waterfront chateau on the French Riviera near Antibes which had been repossessed by French authorities estimated to be valued around €100 million. The property was subsequently sold at auction to an undisclosed buyer who reportedly co-founded the WhatsApp messaging service.
Distressed real estate opportunities can offer the opportunity for significant, almost immediate balance sheet growth with strong downside protection because assets are typically acquired undervalued. Opportunities are sourced via Marbanc’s existing networks of real estate brokers, developers and investment bankers who are aware of Marbanc’s investment requirements.
The real estate acquisition and enhancement program will be funded using a combination of capital from realized gains from existing Marbanc assets in other sectors over time and debt sourced via its Australian funding arm, Income Direct, which has experienced strong demand for its high-yield fixed income solutions from clients seeking effective ways to deploy idle capital.
The group is targeting net annual returns from the strategy of 20 per cent plus per annum due to the cost efficiencies of the implementation of the strategy at scale and the increased number of distressed opportunities arising from higher interest rates. The €1 billion to be deployed over an estimated five years includes development, renovation, furnishings, staffing and operational costs associated with the accumulation, enhancement and management of the portfolio.
Contact Info:
Name: Christopher Moritz
Email: Send Email
Organization: Marbanc International Corporation
Website: https://marbanc.com/
Release ID: 89146044
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