This post first appeared in Private investment firm financed Sierra Blanca Estates’ three projects on Costa del Sol.

RoundShield Partners has exited its investment in a luxury residential portfolio on the Costa del Sol in Spain.

The London-based investor lent a €70m senior secured loan to Sierra Blanca Estates to finance the portfolio in April 2019. On closing, RoundShield provided rescue finance that allowed the family-owned developer to retain ownership of two sites in the Marbella Golden Mile – a prestigious area along the coast of Marbella – by refinancing a defaulted loan undergoing foreclosure proceedings.

RoundShield also financed the exercise of a call option over a site that has planning consent to develop Malaga Towers, a landmark beachfront high-rise apartment complex.

The private investment firm also provided development funding for the three projects in collaboration with a leading Spanish bank on the back of off-plan sales to both domestic and international buyers.

The portfolio includes Spain’s first fashion-branded residential scheme, Epic Marbella, which comprises 56 apartments and five villas designed by two international luxury fashion brands. The project’s gross development value increased significantly, allowing RoundShield to successfully exit the debt facility and generate returns of 21% IRR and 2.2x multiple.

Sierra Blanca Estates has fully repaid its debt through the commercialisation and execution of the projects.

The transaction follows several similar projects funded by RoundShield, demonstrating continued demand for its asset-backed approach, the firm said in a statement.

RoundShield is set to reach the final close of its Fund V, which focuses on European asset-backed special situations and distressed opportunities, in the first quarter of this year, based on an interview with React News late last year.