This post first appeared in Distressed debt specialist Roundshield exits residential portfolio in Spain

RoundShield Partners has exited its investment in a prime residential portfolio, comprising two development projects in the Costa del Sol, as well as readying an additional site for a third high-end project to be developed at a later stage.

In 2019, RoundShield provided a €70m senior secured loan to Sierra Blanca Estates, enabling the family-owned company to retain ownership of two residential sites in Marbella’s Golden Mile and avoid foreclosure proceedings.

RoundShield, which focuses on special situations and distressed opportunities, also financed the exercise of a call option over a site with planning permission to develop a beachfront high-rise apartment complex, Malaga Towers. Additionally, RoundShield provided development funding for the projects in conjunction with a Spanish bank, with off-plan sales to both domestic and international buyers.  

The portfolio includes the first ’fashion-branded residential project’ in Spain, Epic Marbella, which has 56 apartments and five villas designed by two international luxury fashion brands, including Fendi Casa.  

Ignacio Lliso, managing director at RoundShield, said: “RoundShield is proud to have supported Sierra Blanca Estates in becoming the leading luxury developer and pioneer in branded residences in the Costa del Sol. Our investment strategy seeks opportunities and assets with strong underlying fundamental value in need of private capital solutions and we are pleased to have shared in the success of Sierra Blanca Estates.” 

Carlos Rodriguez, CEO at Sierra Blanca Estates, added: “RoundShield has been a  strategic partner in supporting our company to achieve its most ambitious goals and complete our transformative vision, fulfilling our founding commitment as a luxury real estate developer on the Costa del Sol. Their support and flexibility has been a key element to allow Sierra  Blanca Estates to grow and become a leader in this market in record time.”

In April last year, RoundShield raised an initial $750m (€680m) for its latest European asset-backed special situations and distressed opportunities fund. Its Fund V has an €800m target and a €950m hard cap.
The firm’s previous fund in the series, Fund IV, closed at its £670m hard cap in March 2020.